I get asked all the time by my fellow Real Estate investors if they should be utilizing bank REO’s as a source of great deals for their Real Estate Investing businesses. . . . and my answer of course is yes, but it does come with some words of advice. 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 having 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 time saving systems that are essential to qualifying REO prospects. Instead they give REO investing a shot for a couple weeks, and when nothing comes of it and they feel like a lot of time has been wasted 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 my time saving 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 find 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 the 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 so 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 my top 7 reasons why REO’s are the best niche to start building your REI business:
1. No Marketing Costs! Almost all of the lead generation strategies that I use within my REI business cost money. . . and some cost a lot of money! When you are just starting out with your REI Business its pretty normal not to have much money available for a marketing budget, but with bank REO’s you don’t need any money for marketing to be successful!
2. You can easily make multiple offers every day! The only other strategy that I know of where you can easily make as many offers in a single day is at the auction. . . . but you would need actual cash in hand to do so. . . . proof of funds letters would not work like they do with bank REO’s!
3. You can Leverage other peoples time (i. e. Realtors) to do a lot of the research and busy work for you! If you build a solid relationship with a Realtor who you buy Bank REO’s with, they will be more than happy to do any property research you need done. . . . along with delivering leads, pulling comps, walking properties, making offers, following up on deals, etc.
4. There is an abundance of deals and they are easily found. . . . you just need access to RMLS! There are also other mortgage lender websites that you can utilize to find Bank REO’s, but RMLS has all of the important information that you will need in order to qualify an REO as a good prospect.
5. The Bank will give you an inspection period almost every time you buy an REO! By having this it allows you a lot more time to make sure you are getting a deal. With a lot of other strategies you don’t get the luxury of this extra time to investigate the property so thoroughly!
6. Once you set up your system you can have deals automatically show up in your email inbox everyday! By implementing all of the information I am going to share with you in this book there is no reason why you too can’t have bank REO deals that show up in your email inbox every single day!
7. It’s a relationship business, which means you can get multiple deals from the same REO agents over and over again! There aren’t many strategies with real estate investing where you can market one time and get deals coming your way for years to come!
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 and found the information helpful to your business.
My Investing Mentor Education is a real estate education company that provides our students with the most up to date investment strategies that work in today’s economy and real estate market. We not only teach our highly effective investment strategies, but we also use them within our own Real Estate Business each and every day. Over the past few years we have created and refined many different strategies for making huge profits buying and selling real estate….and now we are going to make all of those secret money making strategies available to you! We are in the process of offering a variety of Articles, Ebooks, Home Study Courses and a Membership Mentoring Program to help our fellow Real Estate Investors succeed in this great business. To learn more about investing in Real Estate and more specifically bank owned properties go to http://www.MyInvestingMentor.com
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