How to Successfully Invest in Bank Owned Properties

I get asked all the time by fellow Real Estate investors if they should be utilizing bank REO's as a source of great deals for their REI businesses….and my answer of course is yes, but it does come with some words of advise. I always tell them if you don't have proven strategies & systems that you are using to find, qualify & offer on REO's then you could easily spend a lot of valuable time spinning your wheels and end up not have any deals to show for it.

When you first start out trying to buy REO's it can be a little overwhelming because there are so many bank owned properties on the market these days. You really have to know exactly what you are looking for in order to quickly sift through the inventory of REO properties and identify prospects that can actually make you some money!  The biggest reason why most investors never achieve success buying & selling bank REO's is because they never figure out and/or implement proven time saving systems for screening and qualifying deals. Instead they give REO investing a shot for a couple weeks and when nothing comes of it, frustration sets in and they give up and move onto the next investing niche.

It took me the better part of a year investing in REO's to really start to understand how to successfully do it while wasting the least amount of time as possible….but now that I have figured it out and utilize prospecting systems I basically have deals on demand, simply by pulling certain lists of REO prospects in RMLS. It truly is amazing how simple REO investing can be to get deals once you just focus your efforts on only the properties that you can actually buy at huge discounts! Now don't get me wrong it's still a number game and there is no way you will get every deal you submit an offer on, but by targeting the right prospects along with using the right timing your chances of success increase exponentially….which can mean great things for your bank account.

I started my own personal real estate business from scratch in 2008, and I have built it into profit machine that it is today by using REO's as our most consistent deal generator. I honestly believe that anyone who is just starting their real estate investing business needs to start with buying & selling REO's. There really is no other niche that easily allows you direct access to many deals at any given time, which will absolutely speed up your learning curve for this business. As a bonus to this article I am including an excerpt from The REO Blueprint giving you my top 7 reasons why REO's are the best niche to start building your REI business:

Now even if you are not brand new to real estate investing and you have an existing REI business that is up and running, I would absolutely suggest that you add REO investing as an acquisitions strategy. It makes a great complimentary strategy to your existing business and it can help increase your deal flow dramatically, which as we know means mo money!

I hope you enjoyed this article found some of this information helpful to your business. For more information about investing in bank REO's go to www.thereoblueprint.com

Author: My Investing Mentor Education