There are pros and cons when it comes to buying REO properties. One advantage of buying an REO property is that most REO properties are below market value. The reason for this is that REO properties are properties that are owned by the bank. Since the bank is responsible for taxes on the property, they will be happy to sell it to you for below market value. Another advantage of buying REO properties is that there is less competition. Not all real estate investors know about REO properties.
One last advantage of REO properties is that REO properties are easy to find. Most banks have several of these and will be happy to sell them. One drawback to buying REO properties is that when you buy REO properties, you buy them as-is. You will usually have to call the electric, gas, and water companies to have them turned on. The next downside to buying REO properties is that you will have to pay for all repairs yourself if the property needs any. It is important to know what needs to be fixed in the property before you buy it.
One last downside to buying REO properties is that you won’t know about the property’s past. One way to overcome this is to do a little research on the property. A good place to look is public records. When it comes to buying REO properties, it has its pros and cons. With the information you read here you will have an idea of what they are.
