REO properties are also known as bank owned or real estate owned properties. These are the properties that have been foreclosed on, went to auction, and are still waiting to sell. When you want to get your hands on the best of the best, you really need to check out these properties and see what they can offer you.
Many people lose hope and think that once the foreclosure auction has taken place, the deals cannot be done,Prada bags. However, not every home sells at auction, and you can sometimes get better deals by waiting until after the fact. Banks aren't penalized anymore for having properties on hand like they used to be, so they're often a little trickier to work with, but that doesn't mean that you can't still turn a profit.
There are three main types of deals when it comes to buying REO properties:
-The junker. This bank can afford to sell these homes for ridiculously low prices because they just want out of the property. You buy cheap with cash,http://pinterest.com/tomsshoesale/, or get it under contract, and turn around and sell to the highest bidder to make your profit.
-The cleaner. This one is where they will sell the house at a discount to move it quick, but it's not really a junker or "rehab" property, it just needs a good cleaning, maybe a little paint and carpet.
Again, they'll take lowball offers in many cases just to get the home off their hands,Toms shoes sale. You can offer 40 to 60 percent lower than the value of the home and often get an accepted offer in no time at all.
-The short sale insider. These properties aren't bank owned at all,Gucci Bags, but don't let that stop you. Short sales are tricky, but agents can access them 100 times easier than a typical investor. They'll be able to make great deals and do all of the work for you, allowing you to make an offer and sit back and wait. Once the offer is accepted, the property is yours to flip, assign, or resell.
When you buy these homes, you have three choices of what you can do with them basically. You can sell them to another investor immediately, if you want a quick profit. If you want a bigger profit, you can fix them up a bit and sell them to an owner/occupant or even an investor that is interested. Finally, if you can't sell or want to try something different, you can lease out the property, use the deposit as your profit, and use the monthly payments to make the mortgage. No matter what you decide, REOs are a great choice for foreclosure investments.