Advantages of Investing in an REO Property

Investing

Real estate owned (REO) properties can be a fantastic investment opportunity for buyers who either want to resell the property for profit or rent it out long term. It’s important to hire an experienced agent who can help you navigate the process, but there are definitely a few advantages to investing in a bank-owned property. Check them out!

Price Point:
When a house is under ownership of the bank or lender, they want to sell it quickly to minimize losses. From an investment standpoint, that’s a good thing because the property is less likely to have an inflated price tag. Depending on the circumstances, you may even find an REO property listed below market value.

Return on Investment:
You can do this one of two ways:
1. Renovate and resell – also known as “fix n’ flip” – where you make the necessary repairs to a property and then resell it for higher than the purchase price plus renovation costs. This can be a bit of a risk, but if done right, you can get a significant return on your initial investment.

2.Renovating and renting. Rather than getting all of the profits in one big payment, you’re able to generate a steady stream of income for as long as you own the property.

Fewer Buying Obstacles:
Purchasing a bank owned property isn’t the same as buying a property from the owner, but that’s not necessarily a bad thing. One of the most important differences is the fact that the lender will typically take steps to clear any tax liens or title issues associated with the property before attempting to sell it. That in itself can be a major time saver if you’re hoping to move forward with a sale sooner rather than later.

Ready to start your investing journey with a REO property? Metrowest specializes in these types of transaction and would love to help!

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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