Foreclosures and property repossession procedures have given birth to a new class of properties for the investors to invest in – Bulk REO Properties.
Bulk REO Properties are described as the properties owned by a lender, usually a bank, after foreclosure and the lender’s failure to sell them at foreclosure auctions. Once a property is rejected by the bidders at foreclosure auction, it becomes a real estate owned or REO property and a number of investment benefits are added to it.
Sit and learn about the advantages of real estate owned foreclosures as they unfold in the following sections.
Below Market Prices
The most exciting benefits of Bulk REO Properties is that the bank offers them at prices much lower than the average market values. It is the bank’s first priority to get rid of bulk real estate owned properties, making them attractive investment options.
Risk Free Investments
The new real estate investors get inspired to invest in REO houses as there are fewer risks involved in investing in them. So, an inexperienced investor can make a lot out of investing in the real estate owned properties.
The banks make all good efforts to make the real estate owned properties attractive investment options. One step in this direction is the removal of existing liens from the property. This step further enhances the importance of REO properties as risk free investment options.
Less Efforts Required
Investing in the Bulk REO Properties require less efforts from the investors. For example, the investor doesn’t need to hire a personal appraiser to assess the property. This task is already done by the bank. In other words, investing in these properties is a time saving process.
Insurance for Title
REO investments involve the benefits of transfer of title from the owner to the investor. The real estate owned deals include insurance for title as well so that the common risks associated with foreclosures are effectively removed.
Another good advantage of Bulk REO Properties is that the investor doesn’t need to participate in auctions to try winning the property. An investor can make an offer for an REO property at any point of time and follow the investment schedule at his own will.
Interestingly, most of the people are unaware of the concept behind the REO investments. This significantly reduces the competition for the new real estate investors to place their hand on the attractive real estate owned properties.
Allowed to Inspect
The investors are allowed to inspect an real estate owned property before he or she invests in it. This facility usually lacks in foreclosed properties. Before you invest in a real estate owned house, you can inspect it to the best of your satisfaction.
Repaired by Bank
Banks, in order to lure the buyers, carry out the repair work demanded by the Bulk REO Properties. This further reduces the expenses for an investor in these properties.
Eviction of Inhabitants
The banks take the responsibility to evict the inhabitants of the REO property before the investor fully owns it. This saves the investor from facing probable frustrating situation of dealing with the inhabitants.
Finally, these properties are easy to find using the online REO listings. REOs are great investments if you are able to follow the right procedure to acquire the best out of them. Get ready to enjoy all the above mentioned advantages with your newly developed interest in the Bulk REO Properties.
By Frank Salisbury