This reprinted article will help prevent misunderstanding about the process and insure success for all involved!
Reposted by Leah Henderson www.exitwithleah.com
CM, Yahoo! Contributor Network
REO packages are real estate owned pieces of property that can be bought in bulk at very low costs. Many people who invest in real estate often look for these bulk packages.
Most banks will offer reo sales, and many times a bulk purchase will be available. Thousands of investors chase these bulk reo sales across the country, looking for the best buy that will yield them the biggest profit. There are some things to be aware of when looking to buy reo. First, if you are not familiar with the way banks handle reo sales, it may be in your nest interest to hire a buyer's agent. They will be experienced and knowledgeable in all aspects of the purchase. You will work with the agent to find the best purchase. The agent works for the buyer only and will work to find the best possible deal. It is possible to negotiate with a reo. This is more common if the listing is older. The longer a listing is available, the more anxious the bank is to get rid of it. They may be willing to drop prices significantly, especially if you are buying in bulk.
Keep in mind that most bulk reo packages will be sold as is. This means that you will have to put some time and money into the property if you want to make a decent profit upon the resale. Bulk reo property investing
is perfect for those who have an unstable financial future. Buying these homes in bulk will allow you to live in any of them without worrying about being foreclosed on if you cannot make the mortgage payment. This is true because the cost of the home will be drastically less than the value of the home, thus making the mortgage rate much lower than a traditional mortgage. Investing in bulk reo property allows almost anyone the ability to purchase homes at a low cost and have the opportunity to make huge profits by reselling them.
If you have the time and the resources, try to do a little research before making the commitment to purchase. The bank will not be able to provide the history of the home. This means you will not know what repairs will be needed or which have been done until you have the home inspection. By looking up some public records, you will be able to get a good idea of the condition of the property before you purchase it. This may save thousands of dollars in the end. Try to gather as much information on the properties as possible before making the bulk purchase. Also, keep in mind that when you buy reo properties in bulk, you will be responsible for all the properties once the sale is final. This is a lot to manage, so make sure that you have the resources to do what needs to be done. Buying reo property in bulk has been a great investment opportunity for many people. It is especially beneficial to those who cannot afford to purchase multiple properties at listed prices. The banks are usually eager to sell off these foreclosed properties at a great price, allowing you the potential to make a large profit.