Despite the current poor outlook, there are still real estate investment opportunities to be found; in particular, you may want to look at investment in bank owned property. As the number of foreclosed or bank owned properties increases, the smart investor can secure real estate at extraordinarily low prices. Purchasing bank owned property and then reselling to eager buyers is still possible if you understand the process of setting up such a deal. By putting together deals on foreclosed properties, you’ll have a fantastic opportunity to build your wealth and secure your financial future. The potential right now is exceptional, with bank owned properties available in a number of locations.
Bank owned properties, also known as Real Estate Owned property or REOs, refer to those properties which have been foreclosed by the bank. After foreclosing on a property, the bank then owns a piece of real estate that it generally wishes to sell quickly. Bank owned property incurs a lot of expense for the bank during foreclosure. In order to recoup the costs of the foreclosure, the bank will usually auction the property and get it off their hands fast to try to recoup their money. If you invest in real estate, then this is an opportunity to secure an investment by purchasing and reselling the property.
A real estate ‘flip’ is when you purchase a bank owned property at a reduced price and on-sell it to an eager buyer for a profit. By setting up such a deal, you can make a significant sum. There are considerable advantages that come from doing this instead of following a more traditional path of buying and renting an investment property. One key benefit is that ‘flipping’ bank owned properties doesn’t require jumping through hoops to get funding from the bank. When you create a satisfactory deal you can often secure private funding to manage the deal and take your cut at the end.
Building wealth through creating real estate deals on bank owned properties is an excellent means of ensuring your financial future. Using private funds adds an extra element to the deals you put together and with the flexibility offered by private loans, you can avoid credit approval and structure a deal that works for you and the lender. Once you understand how to build wealth and create deals with bank owned properties, you’ll be amazed at how simple and highly effective this is. Bank owned properties are on the increase in the current economic climate. If you are prepared to work on building your knowledge base – then using bank owned property is an outstanding opportunity to secure your long term financial future.