Targeting REO Properties is a Great Way to Begin Investing
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Posted On :
May-02-2011
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Article Word Count :
474
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Great Way to Begin Investing in REO properties, or Real Estate Owned properties, are foreclosed houses that now belong to the bank.
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Do you want to become a millionaire even with the current housing market slump?
And what if I tell you that you actually can?
How? By investing in REO properties.
REO properties, or Real Estate Owned properties, are foreclosed houses that now belong to the bank. Often, these banks are itching to get rid of these houses, since they are now the ones responsible for it. And since they are a tad bit desperate, what they do is they add a couple of enticements here and there to make it more attractive to investors. These “enticements” include:
Lesser Price Value
Of course I wouldn’t forget about this, wouldn’t I? The best thing about REOs is that their value is reduced considerably compared to the original price.
Low Interest Financing
This is good news. Now, you don’t have to spend too much on those nasty interest rates that gnaw like pesky critters in your wallet. What’s more, most banks only require you to pay a ten percent down payment if you plan to have the property rented.
No Tax Liabilities
Wait, did you hear it correctly---NO TAX?!? Yes, your ears are working perfectly fine, I’m glad to say. Remember when I said earlier that the banks are a tad bit desperate to dispose of the properties? Well, it’s because the burden of paying the tax now rests on their well-padded shoulders. So be gentle and kind with these poor creatures when you negotiate a deal with them.
Additional Allowance
No, it’s not that measly, pitiful allowance that your mother gives you at school. The allowance I’m talking about here is for property repairs—should you intend to buy it. Let’s face it—not every house that you’ll come across here will give Oprah Winfrey’s home a run for her money. So face the truth now before you get that first property shock.
Discounts Galore
I’m a firm believer of the power of discounts, and if you want it to bless you like there’s no tomorrow, then go invest in an REO. Why? Because you might come across a 100 percent discount in your title search if you use the similar title company that the lender collaborated with during the foreclosure process. Sweet.
With so many of these benefits just waiting for you to reach, it makes you feel like a kid in Toy Wonderland, isn’t it? Investing in REOs is one of the safest ways to earn big bucks in real estate, but before you do this, make sure you learn more about the ins and outs of the business first. REO investing is not a walk in the park, so prepare yourself with the proper knowledge before you make that first, good deal.
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Article Source :
http://www.articleseen.com/Article_Targeting REO Properties is a Great Way to Begin Investing_61000.aspx
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Author Resource :
Feel free to see more latest Real Estate trends in Seattle and San Jose California, including REO Guides and Short Sales Properties. Visit us at http://bloggericious.com/delicious/realestate/.
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Keywords :
real estate trends,
Category :
Finance
:
Real Estate
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