There are advantages and disadvantages when it comes to buying REO properties. One advantage of buying a REO property is most REO properties are below market value. The reason for this is REO properties are properties that are owned by the bank. Since the bank is liable for the taxes on the property they will be more than happy to sell it to you at below market value. Another advantage of buying REO properties is there is less competition. Not all real estate investors know about REO properties.
One last advantage of REO properties is that REO properties are easy to find. Most banks have a number of them and will love to sell them. One disadvantage of buying REO properties is when you buy REO properties, you buy them as is. Usually you will have to call the electric, the gas and the water companies to get them turned on. A next disadvantage of buying REO properties is you will have to pay for all the repairs yourself if the property needs any. It is important to know what in the property that needs to be fixed before you buy the property.
One last disadvantage of buying REO properties is that you will not know about the past of the property. One way to overcome this is to do some research on the property. A good place to look is the public records. When it comes to buying REO properties there are advantages and disadvantages. With the information you read here you will have an idea on what some of the advantages and disadvantages are.
Thursday, July 23, 2009
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- ▼ July (17)