How to Invest in "Bulk REO" Houses
By: Duncan Wierman
The past few months have been one of the most turbulent fiscal periods that recent history has encountered. Today, the effects are still felt and many people are still reeling from the major recession and global financial economic crisis that has sprung on the country and all over the globe. Massive lay-offs have become the headline of so many newspapers and the words have been flashing on the television screen incessantly for several months now. One of the potential rays of light that people are now looking into in these financial dark ages is bulk REO investment. Before a successful foray into the bulk REO investment field, it is important to know the basics of the concept first.
Real estate owned
REOs means real estate owned. It is a real estate term that is used to describe a process that begins with a house that has been placed on mortgage or other types of loan. Once the loans have been unpaid for a given period of time, usually six months to one year in most banks, the bank will undergo a process that is known as foreclosure. The foreclosure is the technical term for when banks claim a property that has been given as a sort of collateral for previous loans made the homeowner who is also a borrower. Once the foreclosure has occurred and the house is legally entitled to the banks, the property can be considered REO.
Best investment today
Bulk REO buying is one of the ways that more and more people are investing in these financially pressing times. Because bulk REOs are actually liabilities that lessen the over-all value held by the lenders, such as the banks, most of these monetary institutions are only too keen to lose their hold over REOs and have these real estate exchanged for actual money. Many people are utilizing the cheap prices that REOs are auctioned off at to avail of cheap investments.
Important things to consider
If you, like many others who are looking for the silver lining amidst the stormy financial crisis, are thinking of investing in bulk REOs in order to provide some financial security for you and your family, one of the most important things to consider first is the REO source. Because bulk REOs have turned into a buzzword among the real estate and investment sectors, anyone vaguely acquainted or related to these sectors may have already heard of the benefits of bulk REOs. However, if you were to ask someone about bulk REOs, the most likely answer is that they do not really know anyone who directly can link you up with bulk REO sellers. Make sure that in your investment, you have a direct source to ensure that you will not be paying one middleman after the other - all for nothing, in the end.
Next, it is absolutely important to remember that in bulk REO investments, one of the most important things that you must have at hand is enough capital. While bulk REO investments are hands down one of the cheapest investment offers that can be offered to you - which makes it a justifiable phenomenon - you should still be aware that this will entail a good deal of capital in order to make the first investment sale that will lead to others.
Information about the Author:
Duncan Wierman is one of the founding members of "Bank REO Property Deals llc, his company is connecting sellers of verifiable" product with qualified buyers. If you are interested in learning more about Bulk REO investing, his site also contains great information about how to started and also interviews with other experts in the field of Bulk REOs. Review sample sanitized tapes free. Visit: http://www.BankREOPropertyDeals.com