Foreclosures are everywhere, in all neighborhoods, sitting, waiting, vacant, and when these foreclosures officially hit the market, the best will be gone before sundown. They are the REO, also known as Bank Owned property; and they are the investor's golden dream.
The large amount of foreclosures in today's market has created opportunities that have never existed before in real estate. These Bank Owned properties (REO) offer many financial advantages while lowering the risk associated with the purchase of a foreclosed property.
1. Instant Equity:
Almost all foreclosed properties are offered below retail value which creates instant equity and instant net worth for the investor. The equity makes obtaining a loan easier because the loan to value ratio is very attractive for both conventional and hard money financing.
2. Large Inventory:
Not only is there a surplus of Bank Owned (REO) listings in Florida but across the US All markets are experiencing a high volume of foreclosures; in return this is creating a surplus of Bank Owned properties (REO) in every city and many choices for the buyer. However, the cream of the crop goes quickly; submit your contract immediately because there are not any second chances.
3. Clear & Clean Title:
The foreclosure process eliminates all liens, judgments, association dues, and taxes. It reduces the risk of any title problems and produces an easy transfer of ownership.
4. Vacant & Ready to Go:
The property will always be vacant; the previous owners have moved out or the tenants have been evicted. The property is immediately ready for rehab, rent, sale, or home ownership.
5. Timely Manner:
Plenty of time can be given for the investor to complete inspections, funding, and closing, however, most closing dates are within 30days from acceptance of the contract.
6. Easily Submit an Offer:
95% of Bank owned properties (REO) are listed with a Realtor and are on the easily searchable Multiple Listing Service (MLS). By contacting the Realtor, the investor gains the guidance of a licensed professional. And the best part of all is; the Bank pays the Realtor's commission!