“Foreclosures and REO’s are the greatest opportunity in real estate!” So is the real estate investors’ new mantra throughout the country. As it should be, since all successful real estate investors know that a motivated seller is the beginning of any ultra profitable deal, and banks are definitely on the top of all motivated sellers right now.
Having a huge inventory of bank owned (or “Real Estate Owned” – REO) properties that does not serve as performing assets for the lenders, makes asset managers eager to fix their balance sheets by dropping as many of these homes as possible each month.
The Best Time Is… Now, and particularly towards the end of each month, more so each quarter. Because bankers operate with a certain formula to achieve a good-looking balance sheet at these specific intervals. So, to reign in the greatest REO profits as an investor, it is good to know that your cash offer is more likely to get approved if you can close before the end of a month or quarter.
But of course there is more to it. In order to even be on the radar of bankers and their asset managers, you will need to begin building a relationship. So many beginners in this business try cold calling to get the attention of the people in charge. However, why should they take your call and listen to you?
You have to understand the asset managers’ biggest problem, and put yourself in a position to solve it. As we’ve already found out, their biggest problem is to get the next balance sheet to look as good as possible. And if you can show that you can help with that, your chances of getting heard are much greater.
What About Competition? With bank owned foreclosure inventory at an all-time high, it can seem as if everybody is going after the same deals. How can it make sense to “run with the heard” after these profits in REO? Is there a formula one should follow to make sure that you actually get paid handsomely for your efforts?
Perceived competition can indeed be one of the major traps of real estate investing, but let’s take a look at the reality here. With hundreds of thousands of properties sitting on the bankers’ books, the actual pool of profits that can be made is nearly unlimited. At the same time, many real estate investors who have been burned by the recession are falling into the trap of frustration. They are getting out of the game of making offers. In reality that means that competition now is much less than it was in the hot market, where every hair cutter was jumping into real estate, and good deals were hard to come by.
In REO Riches Formula, Jeff Adams talks about the power of REO and bank owned foreclosures in great detail and how to take advantage of the current real estate market for your benefit. It is a remarkable system.
Whatever you do, don’t forget the power of bank owned REO’s. You will never be without profitable riches so long as you can tap into the large inventory of REO’s.
There are many other real estate investing methods that you must learn to drive these deals to your offers and build your empire. Jeff Adam’s REO Riches Formula review will explain many ways to accomplish this.