subject: Rehabbing Bank Owned Homes [print this page] Rehabbing bank owned homes is one of the sure-fire ways to make it big in the real estate investing business. With hundreds of thousands of lender-owned properties across the country today, rehabbing bank owned homes could be your ticket to that life youve always wanted. But before you buy the first bank owned property you come across with, its important that you understand what bank owned houses are, and how you should go about rehabbing them. Also known as real estate owned (REO) properties, bank owned houses are properties that are owned by banks after they were not sold at foreclosure auctions. Lenders, typically banks, seek to repossess houses when homeowners fail to meet their mortgage obligations. REO properties are considered non-performing assets by banks, thats why they are more than eager to sell them for bargain prices. This explains why real estate investors are now targeting bank owned properties. Listed below are three reasons why rehabbing bank owned homes is perfect for real estate investing, especially to those who are new to the business. 1. Cheap Prices As stated earlier, real estate owned houses are selling for pennies on the dollar, making them ideal homes to rehab. Remember that the main objective in real estate investing is to buy low, sell high. What better way to live by that code than paying bargain prices for lender-owned houses. 2. Low Repair Costs Contrary to popular beliefs, you dont have to spend big when rehabbing bank owned homes. The trick here is buying the right property. With the glut of REO properties in the market today, there are thousands of repossessed homes that need only minor repairs. Remember that many of these houses were repossessed from owners who failed to pay their mortgage loans. These properties are not as dilapidated or damaged as most ordinary people think. 3. Clean Titles One big advantage of real estate owned homes is that they have clean titles. Banks are required to erase all liens and claims against a property once it becomes an REO home. This provides rehabbers a huge advantage when reselling the property. Selling a rehabbed home with a clean title is definitely easier than a house with two mortgages on it! Since you can sell the property faster, you can then move on to the next project. The more rehab homes you sell, the more profits you earn! Investing in REO properties is fast becoming the top real estate investing business today. Be a step ahead of the competition and master the art of rehabbing bank owned homes by visiting www.REIwired.com today.
