How to use this page
This page is meant to be a long-term reference guide for you as you work on your REO investing business. Below, you will find an updated archive of our most successful not investing guides, processes and strategies.
We will show you how to contact asset managers, cold email banks, how to get REO listings and so much more.
What is REO?
REO stands for real estate owned which is shortened from the term other real estate owned. REO refers to the status of a property after the bank has foreclosed on the mortgage loan.
Why invest in REO?
Whether you are interested in commercial, multifamily or residential real estate, investing in them once they have been foreclosed and turned into REO is the cheapest way to enter the market.
Usually, when you see a property for sale at below the market value, it is an immediate sign that something is wrong with it. The discount will be a reflection of the problems on the property and if you are unlucky enough to be at a heated auction, you might still be forced to bid for more than the market value.
Fortunately, that isn’t the case with REO, especially when you go bank direct. There are millions of houses that are perfectly fine, that have been foreclosed on by the Banks. When it comes to REO, the discount is because the Bank wants to get rid of those assets. So if you want the cheapest price you have to go straight to the source. Also, when you deal with the banks directly, you won’t have to compete with other sellers as long as you maintain your ability to close on the leads that they send you.