Are REO Properties the Best Investment in Washington DC?
Like so many others interested in real estate investing, you may be eager to diversify your portfolio and get going in buying REO properties. But perhaps you are confused about REOs in general, and wonder if they are a good investment opportunity. The following frequently asked questions will help you decide where you should focus your investments in the Washington DC real estate market.
What are REO properties?
REO properties are real estate owned. These are homes or residences that the bank has foreclosed on-taken back from the homeowners when they have failed to keep up with their mortgage payments. After the bank takes possession of the property, they then turn around and re-sell it in order to cover their cost.
What are the pros of REO properties?
REO properties can be an important part of a real estate investor's holdings. Like a foreclosed property a bank REO can sometimes be found for a bargain price. As a real estate investor, your job is to find the best possible price on a property so that you can turn around and resell it, or perhaps decide to rent it. Either way, your future profits depend on finding a low-priced property to begin with. Many buyers of REOs feel that buying REO properties is a good way to find low-cost homes for sale.
What are the cons of a bank REO?
There are some drawbacks to focusing on REO properties, and one of the main ones is that so many other people are doing the same thing. Say you get up every morning, pour yourself a cup of coffee and scour REO, MLS and foreclosure listings. Guess what? Thousands of other real estate investors are doing the same thing. Real estate investing has gotten very popular, and REO properties are among those first to be flooded with investors. It may take you several days to get an appointment to view a bank REO; days that could be better spent actually buying property. The other problem is that due to the high number of investors looking for these properties, prices tend to go up, and the more you pay for a home, the less potential profit there will be in it for you.
Why is a diversified strategy the best?
While it is important to continue to look at REOs and foreclosures, be aware that most real estate millionaires have made their fortunes through diversification. They go beyond focusing on REO properties and look at other real estate potentials, such as wholesale properties or pre-foreclosures.
Should I purchase a REO or a wholesale property?
While we encourage you to continue shopping for and buying REOs, why not also take a look at the wholesale property market? Wholesale properties are homes sold by real estate investors, and you'll find some wonderful bargains among them. Those in the know rely on purchasing wholesale properties as part of their diversification.
Where do I find wholesale properties?
At MyHouseDeals.com, we provide up to the minute listings of wholesale properties and pre-foreclosures to our clients. Instead of competing with everyone else who is looking at the MLS or REO listings, you can have access to the latest and most potentially lucrative properties.
Isn't it time you jump started your real estate investment potential and started looking into the benefits of wholesale properties? Get access to the best Washington DC wholesale deals today. Become a member for free today by clicking the button below!