Becoming a real estate investor provides you with stable cash flow, passive income, tax advantages, and diversification. However, properties are often hard to afford because of their hefty price tags. Thankfully, you can consider an REO property as your investment property.
REO properties refer to properties that mortgage lenders have repossessed. These are re-sold again after they fail to get sold at foreclosure auctions. Buying these properties can be a source of lucrative real estate deals for you. They also let you save more because they often come with discounts. Additionally, they have fewer complications than short sales or foreclosures since they usually have a clear title and a vacant property.
While REO properties offer many advantages, they can be challenging to find, especially for new real estate investors. To search for profitable REO properties for sale, here are some tips to follow:
1. Check Bank Websites
Major banks, such as Bank of America, Chase, U.S. Bank, and Wells Fargo, have sections on their websites where they list down their available REO properties, so make sure to check them out. It’s also important to remember that they handle these properties differently. For example, some of them don’t sell to individual buyers. For this reason, it’s vital to double-check if they dispose of their REOs by offering them as a package.
2. Use the Local Multiple Listing Service
The multiple listing service (MLS) typically contains REO listings because many mortgage lenders collaborate with real estate agents to list and sell these properties on it. Since your local REO agent is usually the first person to know about eligible REO properties in your neighborhood, consider asking them about these properties for sale even before they get listed.
3. Contact Lenders Directly
If you are searching for REO properties online and you don’t see the listing on lenders’ websites, it’s worth asking them directly. When making an inquiry, ask for the REO department, asset management department, or professionals responsible for handling REO listings.
4. See Public Records
Another place where you can find REO deals is public records. The County Clerk has records of properties that have gone into foreclosure. When searching for legal notices, look for Notice of Sale or Notice of Default. Doing this is free. Plus, you may see properties that still haven’t reached online marketplaces.
5. Government Agencies
If you don’t have any luck with finding good REO deals from banks and mortgage lenders, consider checking government agencies since they also carry out foreclosures. Some organizations that can take possession of homes are the Federal National Mortgage Association (Fannie Mae), the Department of the Treasury, and the U.S. Department of Housing (HUD), so check their websites for listings.
6. Ask Real Estate Professionals
Besides the tips listed above, another excellent way to look for band-owned REO properties before they get listed publicly is to ask your network of real estate professionals. REO agents, title agents, mortgage brokers, contractors, and asset managers have access to available REO properties before they go public.
Conclusion
Investing in real estate involves choosing the right properties to ensure your money works for you and you get the best possible returns. Thankfully, achieving this is possible with REO properties. Since finding them can be tricky, consider trying some of these strategies. You also have the option to work with trusted realtors.
Find the best deals for REO properties for sale in Florida with help from Orlando REO Professionals I, Inc. We can help you get your hands on homes right after an eviction or even during the process of foreclosure. Contact us at 407-704-6924!