- How banks pick deals

- How to figure out an offer

- 4 pointers when making a deal

It's not uncommon for both new and knowledgeable financiers to ask the exact same question: What is REO investing? You've probably heard the term REO residential or commercial property but never quite comprehended the process of getting such a deal, let alone just how much to offer on bank-owned residential or commercial property.

What Are REO Properties?

A bank-owned home is an REO, or realty owned foreclosure. REO residential or commercial properties are those that have actually been recovered by their initial loan provider: the bank. This implies that a bank foreclosed a home, and the residential or commercial property was then unable to cost auction, so it stayed owned by the bank. Banks do not desire these unsuccessful mortgages on their records. To get them off of their hands, banks normally offer them at reduced rates. This is a fantastic chance for investors to get ahold of undervalued residential or commercial property, but not all REO residential or commercial properties are worth the investment. Don't feel overwhelmed