Massive REO Trading: The Next Big Break?

By now, you’ve heard about the rise in foreclosures and REOs, and you’ve probably seen the real proof with more and more homeowners losing their homes.

REO stands for real estate and that’s what the property becomes after the bank forecloses and no one offers on the foreclosure sale.

After the bank repossesses the property from a foreclosure, now the property is there. In other words, they are responsible for taxes, for insurance, for maintaining it, putting more money into an investment that loses.

And then they have to find a local agent to market and ultimately sell the house owned by the bank.

And with many foreclosures being upside down, meaning the homeowner owes more than the place is worth, banks are hoarding their assets more than ever.

The latest trend for real estate investors is to buy REO in bulk.

Here’s why you should seriously consider buying REO in bulk

First, you get a huge discount. As with anything else, the more you buy, the more you’ll save. Since you are buying in bulk, you will get a better deal.

The banks are more motivated now than ever and if you are willing to take several properties off their hands, watch the prices drop.

Remember, lenders don’t make money when you repossess property and keep it.

They make money when they are making good loans.

You can then do it without a credit check. Since you get deep discounts, you will be able to find investors to finance your purchase. Also, many times it is possible to change these offers with little or no cash out of pocket.

Finally, the best reason to invest in REO in bulk is for immediate income. Once you switch these offers, that’s an immediate win. You don’t have to wait for property to appreciate, you don’t have to wait to pay off a property to get cash flow. When you do this the right way you can quickly trade it for a quick profit and since you are trading in bulk the profits tend to be much higher.