Reo Property Investing

What's the deal, with reo investing. Can you really make money investing in them ? The truth is, it depends. It depends on your knowledge and skill sets. Do you have real skills when it comes to investing or do you just have a bunch of theories.

Do you know how to negotiate a really good price, when making an offer to the bank. The thing to remember about making offers from banks is this. It's a non emotional form of negotiating. The bank has no feelings at all about the property. It's all business. It's dollars and sense. They don't take it personal if you may a low offer.

Things to keep in mind, are in regards to pricing. Is the lender taking into to consideration the current condition of the property. Is the priced based on current comps or is it based on the real agents opinion. The other thing to keep in mind is, do you really care how they got the price. Just make your offer, and they will either say yes no, or counter offer.

Don't make investing an emotional game, make it a business game. You would be surprised when your offers get accepted. I had bought reos from banks for $5,000 , when the price they were asking $35,000. The bank accepted my offer without any negotiating at all.

The big question you must ask yourself is, is exactly how are you going to turn your investment into cash. Do you have a solid plan for doing this. You don't want to be at the mercy of real estate agents.

Not to pick on real estate agents, but real estate agents, will lead you to believe that they can sell your property. They lead people to believe that they have a buyer waiting in the wings. Once you sign on the dotted line, things change. You are locked into the contract and they are off looking for another listing. Real estate agents are notoriously bad for pressuring people into to signing a exclusive listing. As a matter of fact, this is usually one of the first things they ask you to do. Why not ask them to show you exactly how many properties, they have sold in the last 3 months. Check to see how long those listings were on the markets.

Keep this in mind. Are you counting on appreciating In hopes of making a profit. If you buy property for $100 to $1,000 then you don't even need appreciation at all. This is my preferred method of investing in real estate.