There are enterprising real estate investors that purchase bank homes by the bulk
. If a real estate business has the financial capability to purchase a string of bank owned foreclosures then they are in the best position to get the most substantial discount. These companies will then resell these homes to the market and they are not really stingy on sharing the savings they made from the bulk purchasing of distressed properties.
Wholesale Buying and Selling of Homes
This is a lesser known method of purchasing bank homes. Buyers can try to search for private real property sellers that are into the practice of selling homes at wholesale prices. What they engage in is the buying of REO portfolios made up of several properties. This way they are acquiring homes wholesale and are getting really huge discounts on these properties. When the number of homes in a portfolio run into the hundreds then their resale value goes even lower compared to the actual value of the homes.
Banks likewise prefer this type of transaction considering the large number of foreclosed properties they need to move. The wholesale buyers will in turn resell these homes as is more quickly and realize profit from each sale. It is not unheard of to buy homes from these investors for seventy cents or less on the dollar.
Another type of foreclosure investing is house flipping. This is where investors purchase fixer upper bank homes, rehabilitate the property then put them up for sale with a mark-up. Buyers may still find affordable homes this way. Indeed there are other ways of purchasing bank homes at low prices, the buyer just needs to take time to educate themselves on the market, practice caution, network with real estate professionals and stick to a budget.