Posts Tagged ‘Flip Properties’
The Secret Behind Flipping REOs
Investing in commercial real estate can be easier and more profitable than single family homes. While the income potential may more than justify higher prices, coming up with the funding to support commercial real estate purchases may be both intimidating and even prohibitive for many real estate investors.
If this scenario rings true for you, then you might consider something a little more basic to help build some investing momentum and to also put some cash in your pocket as you’re doing so. One of the best ways to make some big bucks in the current real estate market is by flipping REO properties.
Just so we’re all on the same page, REO properties are those that have been foreclosed on, and are now back in the hands of the bank. There is no homeowner to negotiate with, or to have to explain the foreclosure process. REOs have clear title, are often discounted, and investing in them is very much a repeatable process.
The acquisition process for REOs will require that you have a good local realtor on you team, which isn’t a bad thing to begin with anyway. The reason for this is that the REO business is very much a numbers game, even more so than for other types of real estate investments. The advantage you have is that there is a high volume of available properties out there, so you can look for those great bargains and make offers until something sticks.
Once you are able to find quality REO deals, the next step is to turn them into profit, cash flow, or both. For many investors who are looking to bolster their cash supply for larger and more long-term purchases like commercial properties, the idea of flipping REOs can be very attractive, and quite lucrative. End buyers for these kinds of properties are becoming more abundant, and the quality of discounting that the lender owners are offering with many REOs can be quite impressive.
In subsequent articles on the subject of REO properties, I will be discussing how to use proceeds from them to help build towards larger purchases like commercial real estate. I will also tell you how attracting private lenders to smaller REO purchases now can set the table for having ready sources of private capital down the road with your commercial investments. With that said, stay tuned, as I have a lot more to share with you.