Investing in real estate owned properties—or REO—can be highly lucrative, but it’s also risky. To get started investing in REO property, it’s important to follow some best practices when making offers and purchasing decisions. Here, we’ll discuss some tips to apply when starting out.
What Is REO Property?
Real estate owned property is property that is owned by a bank and listed for sale. After foreclosing a home or other piece of real estate, the lender first tries to auction it off to the highest bidder. If it doesn’t sell at the auction, the bank retains ownership and lists it for sale as REO property.