Have you considered purchasing a home for an investment venture? If so, you may want to search for a bank-owned or foreclosure property. REO stands for real estate owned property. While there are many ways to search for one online or through a business contact, one of the best ways to find one is to work directly with an REO agent. Here's why.
An REO Realtor May Have Access to Properties Before They Hit the Market
If you're able to work with a good REO real estate agent, it's to your benefit. They often have close relationships with multiple banks, so they can give you exclusive details about an upcoming short sale. Many property listings are available through auction sites to the public. This can start a bidding war with many investors. With an agent, you may be able to make an offer on an exclusive property before it is available to everyone else.
Exclusive Details About the Property
With foreclosures and short sales, there are often limited details available about the property when it's listed online or in an ad. This is because the bank hasn't had time take photos, or the bank doesn't have access to the property just yet due to the owners still residing there. REO agents will dig deep into the property history and get inside details about the property condition and any cosmetic updates that have been done. This is done through skip tracing and access to detailed property data. Keep in mind, most of these sales are done sight unseen, so you are still taking a risk that there could be underlying damage to the property.
They Know How Motivated the Seller Is
The seller is the bank or another investor or who knows exactly how much money has been invested in the property so far. They know what they stand to lose and what the minimum amount is that they will accept. It's important to have this information going in. There will be a minimum bid requirement, and your REO agent will know what that is, so you can be prepared. Some banks have been sitting on the property for a while and are very motivated to sell, while others will expect a higher starting bid in order to recoup the loss and get the most financially.
Having an REO agent on your side is beneficial in many ways. They work exclusively with foreclosures and properties that need to be sold quickly. They have a thorough understanding of how auctions and these types of sales work. This ensures that you can get a promising property for the least amount of money. The goal is to then flip the property over for a fast profit to put money back into your bank account.
To learn more about foreclosure properties, contact an REO real estate agent in your area like those at @properties.