Banked owned REO properties are a great way to get your start in the house flipping world. Your first attempt at house flipping should be an easy one both financial and legally. There is no better investment in the real estate world that a REO property when you set out looking for these two characteristics. Your first flip job should be one that is so positive that you should never think twice about starting all over again with another project property.
REO property is the name that is giving to a piece of real estate that the bank took ownership of due to foreclosure, they then attempted to sell the property on the public auction format and the property did not sell. When this happens the bank goes into recovery mode with the property. Their main goal is to break even with the real estate. The need to settle and break even is what makes a REO the perfect choice for the first time flipper. The money that you save on contracting the property will give you extra money to do add-ons and repairs making the house worth even more.
Besides worrying about the price the first time flipper is also going to have to deal with a lot of new legal issues that they have never been faced with before. There will be contracts that need to be signed and forms that need to be filled. Another big advantage of a REO home is that they bank has already taken care of most of the legal problems that occur when dealing with a foreclosure property.
Both of these reasons are just the tip of the iceberg when you are talking about why a REO home is a great idea for your first flipping project. Take the time to check out the REO listings in your area if you think that you are ready to start your flipping adventure.
