You may not be familiar with the term REO but if you have an interest in investing in real estate, it is wise to understand what the term implies. Over many years real estate has been considered as one of the most profitable investment sectors

1. Are You Ready To Buy An REO Today?
Buying Real Estate Owned (REO) properties - usually owned by lenders such as banks, credit
unions, mortgage companies etc - can fetch you handsome profits but it is necessary that you
fully understand what you are buying lest you can burn your fingers.
Buying REO properties from the lender/bank can be safe but it is important not to impulsively
buy it as there can be risk involved. It is advisable to hire the right REO agent to help you with
your purchase. The REO agent will have the expertise to let you let you know if the foreclosed
property is selling below market value.
Whether you are buying it as a home for occupation or as an investment, make sure you have the
necessary financial resources. It is prudent to obtain a pre-approval letter from a prospective
money lender before venturing a REO purchase. You can land in a serious mess if you
successfully bid but unable to buy for want of finances.

2. Again, engaging the services of a reliable home inspector is absolutely essential so that you are
not saddled with a house that is in need of serious repairs. You will lose money heavily in
renovating the house and your dreams of making a profit shattered.
Please remember many REOs will not be in a ready-to-move condition, and it is unlikely the
seller will do any repairs before handing over the property. You have to be prepared for
additional expenses because REOs are usually sold in As Is" condition. To safeguard your
financial interests, you should hire an inspector to see the property and bear the cost of repairs in
mind while making your offer.
Please also remember that sale of REO properties involves fulfillment of quite a few formalities
and hence will take more time than buying home in the open market. You have to necessarily
exercise patience and wait for all the procedures to be completed.

3. One big advantage buying REO property is the lenders will ensure removal of tax liens and also
evict the occupants if any. Thus, most REOs will be free of title-related problems but you should
nonetheless have a title search done on the property as also a proper appraisal. As stated often by
many, buying REO can be profitable if you can find the right property and get it at the least
possible price.
There are two ways you can purchase REO. You can buy one REO property at a time through
REO agents who have been allotted these properties by banks. Alternately, you can buy a group
of REO properties in bulk directly from a bank or the servicing company – if you are an investor
and have the financial muscle.
In a bulk purchase, you are buying multiple homes scattered throughout the country. These
properties invariably come without any representations of title and may even entail tax arrears
and liens attached to them. You should have the necessary confidence, experience and contacts
to get rid of all these encumbrances.
To sum it up, it can be said that if you are sufficiently patient, credit-worthy, possess the required
knowledge and REO experts to back you - you can thrive and make your millions in REO
investment.
Resource:
Jeff Adams REO Riches formula can help you generate real estate profits from the comfort of
your house. Through Jeff Adams REO Riches thousands of ordinary people have generated
profits through real estate investment. For more useful information visit our site
http://www.reorichesformula.com