How To Buy Bank-Owned Properties For Pennies On The Dollar: A Guide To Reo Investing In Today'S Market

Banks and lending institutions today own more than one million foreclosed properties, and two million more are in the foreclosure pipeline. Banks desperately want to get these properties off their balance sheets, but there aren't enough buyers. The result is a real estate market with buying conditions investors and homeowners may not see again in their lifetime.

In recent years many bargain-hunting investors and homebuyers have made the mistake of trying to get foreclosure prices via short sales and pre-foreclosures before the bank has reclaimed the property. They've been burned by endless delays and uncertainty of the messy foreclosure process. With bank-owned properties, that's over. You deal directly with a motivated seller the bank and get the foreclosure price without the hassles and complexity of a short sale or pre-foreclosure.

This book shows you how to negotiate the best possible terms with the real estate owned (REO) department of a lender, including step-by-step instructions and no-nonsense advice on finding great deals, estimating fair market value, and closing the deal. You don't need a ton of cash, because REO investing at fire-sale prices is affordable for almost any investor or homebuyer.

• Includes ready-made worksheets, checklists, forms, and agreements
• Provides detailed, step-based guidance on buying REO properties
• Written by a super-successful REO investor with fifteen years of experience

Chapter 1: The Perfect Nightmare for Bankers--ADream Come True for Investors.

Chapter 2: Why REO Investing Saves Time, Hassle, and Money Compared With Traditional Foreclosure and Short-Sale Investing.

Chapter 3: How to Overcome Your Fear, Set Goals, and Get Started!

Chapter 4: Overview of an REO Deal.

Part II: REO Deals, Step by Step.

Chapter 5: Where to Get the Money.

Chapter 6: How to Research Your Market, Create an Investing Plan, and Develop an Exit Strategy.

Chapter 7: How to Get Ready for Your First Deal and Build Credibility.

Chapter 8: Where to Find the Best REOs in Your Market.

Chapter 9: The Importance of REO Agents: Finding the Best and How to Get Them on Your Side.

Chapter 10: Buying REO Properties at Auction.

Chapter 11: The Right Way to Evaluate Deals and Price a Property (as Buyer or Seller).

Chapter 12: How to Make an Offer and Negotiate With Banks.

Chapter 13: Getting the Paperwork Right.

Chapter 14: How to Avoid the Most Common Mistakes Investors Make.

Part III: Exit Strategies.

Chapter 15: Wholesaling the Property to Another Investor.

Chapter 16: Fixing Up and Selling the Property at Retail.

Chapter 17: Buying and Holding: Renting the Property for a Positive Monthly Cash Flow.

Addendum: Understanding Buying Formulas.

Evaluating a Property’s Cash Flow.

Capitalization Rate.

Cash on Cash Return.

Debt Service Coverage Ratio.

Gross Rent Multiplier.

Loan to Value.

About the Author.

Glossary.

Index.