True Facts about Investing in South Florida REO Properties
What are REO properties?
REO stands for real estate owned. A South Florida REO property is a foreclosure that has failed to sell at auction and has subsequently been placed back on the open market for a lower purchase price in an attempt by the lender to regain at least a part of their investment.
How do you locate REO properties?
REO properties are publicly listed, and listings are available through most foreclosure agencies and on the internet.
What is the advantage to buying REO?
The South Florida real estate market is home to some of the most coveted real estate in America, and is full of potential for the investor who knows how to find a good price on an investment property and resell it for maximum profit. Since an REO is a property that has been placed back on the market in a last attempt by the lender to sell them, they can often be purchased for a price below market value.
What are the disadvantages to buying a REO property?
REO properties are owned by banks, so the property's minimum purchase price is determined by the amount of their investment the bank wishes to regain. This amount represents not only the amount remaining on the lien when the house was repossessed, but the amount incurred in the process of foreclosing and listing the house for auction. These fees can eliminate most if not all of the original margin gained at the lower base price.
Are there alternatives to buying an REO?
Absolutely, real estate professionals have been making huge profits for years from the purchase, rehabilitation and resale of wholesale properties and motivated seller leads. These listings are available only through private sellers and as such do not suffer the inflation associated with public consumption.
What are wholesale properties and motivated seller leads?
Wholesale properties are properties that have been located and contracted by a local wholesaler. A wholesaler is a real estate professional who makes a living out of finding South Florida properties that require a very small amount of cash up front for purchase but possess a great resale value if the necessary repairs and renovations are made. They then get these properties under contract to buy, and turn around and sell them for a small profit to eager investors willing to take the time to rehab the property and resell it at market value for a huge profit.
Motivated seller leads are properties that are on the fast track for foreclosure unless their owners are able to quickly locate a buyer. Because of this, these properties can often be obtained for a price generally well below market value in exchange for a quick sale. As there is no third party involved, all the benefits of this sale go directly to the purchaser and the seller. The owner is saved from foreclosure and the investor obtains a good property at an excellent price.
Where do I find wholesale deals and motivated seller leads?
This is the simplest answer yet; you find them at www.MyHouseDeals.com. As a member of MyHouseDeals.com, we'll keep you updated about new properties in your area daily, and each new house added to the list comes with full descriptions, value and repair estimates, and full contact information for the seller. That's right. We do all of the leg work for you, so all you have to do is focus on establishing and expanding your business. Become a member for free today by clicking the button below!