Real Estate Investing Tips on Buying Bank Owned Homes for Profit

Dreaming of building a great real estate empire? Well, you’ve come to the right place because this article will give you an insight into one of the best ways to build wealth in the real estate investing business – by investing in bank owned homes.

Bank owned homes, or real estate owned houses (REOS), are considered some of the hottest investment properties in the real estate market today. In fact, they are extremely popular among real estate investors and conventional homebuyers because of their affordable prices. So if you want to buy these hot properties, here are some real estate investing tips to help you get started:

1. Check out as many REOs as you can. Don’t limit your choice to a single bank owned property. As much as possible, check out all the available real estate owned houses in the area you want to invest in so you can have more properties to choose from. Always remember that more choices mean more opportunities to make money in real estate.


2. Determine comparable sales and the history of the property. Once you have singled out the REO that you want to buy, perform due diligence. You might have probably heard this a million times but studying the comps and the property’s history will help you determine the market value of the REO in question, as well as give you an idea on what your initial offer to the bank that owns the property would be.


3. Inspect the house. One of the most important real estate investing tips on buying bank owned homes that you should remember is never sign a deed of sale without giving the property a thorough inspection. As we all know, many bank owned homes are in a state of disrepair as their previous owners were unable to maintain them because of financial difficulties. By inspecting the house, you’ll get an idea on how much the cost of repairs would be, which you can use to support your opening bid to the bank.


4. Don’t be afraid to negotiate. Although banks will tell you upfront that prices of real estate owned houses are non-negotiable, there is no harm in trying to negotiate for a lower price. Who knows, they might consider your request if you ask nicely.

If done correctly, buying bank owned homes can provide you with great investment opportunities. For more real estate investing tips on buying, selling, and rehabbing REOs, log on to www.REIWired.com.