Investing in Short Sales & REOs (bank owned properties)
The definition of a short sale is a home that is being sold by the owner that is priced less than the amount that is owed on the mortgage. People selling short sale homes owe more on the mortgage than the home is worth, and rather than go through the foreclosure process, the bank has agreed to sell the home for market value or even less. it is a good way for people to get that mortgage off their backs, and the lenders like it too, because they don't have to carry the home as an asset while they try to sell it.
Short sale homes are good investments, especially since they are priced at or below the market value. They are usually in pretty good condition, too, because the owners are still in the homes. Anyone who has spent anytime looking at the foreclosure listings has seen homes that are in need of repair. Short sale homes are usually in good shape because they are occupied, and the owners are taking care of the maintenance issues as they happen.
REOs are bank owned properties that a bank has foreclosed on and now owns. Banks treat the properties differently, some will try to sell 'AS IS', others will do minimum repairs.
Investing in Short Sales and REOs is a time consuming process of buying real estate, but the rewards often outweigh the buying period.
If your or your family's financial future is a concern consider investment real estate, and now is a great time to take advantage of the current real estate market.
Consider using your IRA to buy these properties. See Real Estate IRA button on top.
"If I could have only one kind of investment it would be real estate"......Donald Trump