Let’s take a quick look at REO properties
REO properties are bank, lender or government owned properties. Properties that did not sell at a foreclosure auction.
REO properties present a lot of opportunities but also some issues.
Pros of REO properties
Prices tend to be lower compare to a non REO property.
Provide opportunity to add personal touches while fixing the property.
Comes with good investment potential.
Get more for your money.
Potential issues with the property.
Renovation costs can be a little higher.
bidding war at time for some properties.
Sold as is.
REO properties attract a lot of investors given their lower prices and opportunity to make modifications to the properties without destroying a nice property.
As an investor, REO properties have the potential to provide a higher return on investment.
For an owner occupied, an REO property provides the opportunity to customize the property and have a nice return once the property is sold