subject: Guidelines on Flipping Real Estate Owned Homes [print this page] Guidelines on Flipping Real Estate Owned Homes
Flipping real estate is one of the basic ways to make money as a property investor. You buy houses at a lower price, then sell, or "flip" it to an end buyer at a slightly marked up price. But if you're going to choose which properties to flip, it has got to be a real estate owned house.
Also known as bank owned homes, real estate owned properties (REOs for short) are houses repossessed by banks and lenders. They have undergone the foreclosure process but weren't sold at the auction. One of the main reasons why REOs are a hit among investors who flip buy and houses for a living is that these properties are cheap. You can obtain them for pennies on the dollar because the banks that own them are more than eager to get rid of such real estate assets from their inventories.
If you want to make some profits from REOs, here are some tips on buying and selling bank owned homes:
When flipping real estate owned properties, it is important to study the market you want to invest in. Identify when and where certain properties are being sold. In addition, don't forget to run a comparative market analysis so you'll have an idea how much money REOs are selling for nowadays.
Never let your emotions rule your head when buying bank owned homes. One of the common mistakes committed by investors, as well as conventional home-buyers, is falling in love with the first REO that catches their fancy. Always remember that it is important to take a look at as many bank owned homes as possible before investing in a particular property. This can help ensure that you're betting your time and money on the right real estate investments.
To be the first real estate investor to know about the latest REOs to hit the market, having access to the multiple listing service, or MLS, is highly advisable. However, gaining access to the MLS is not that simple as only licensed real estate agents and brokers can get the latest info from listing service. Therefore, getting a real estate license or working with a licensed broker can help you get the latest information about the newest bank owned home to hit the market.
To learn more about flipping real estate owned homes or other types of investment properties, you can log on to www.RehabList.com.
