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.
Cons:
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
