California REO Deals Are a Great Way
To Purchase Real Estate At a Discount
California REO Properties Are Hot!
It goes without saying that bank
owned properties make for great deals.
That being said, the California REO scene is a prime destination for savvy real estate investors looking to
purchase real estate at a discount.
If you want to make big money, there is no better place to be in than on the West Coast. The City of Angels
offers a wide array of properties to choose from.
In literally one hour, you can go from the beaches, to the mountains to the desert and see some of the most
breathtaking pieces of real estate in the world.
When Will The Market Bounce Back?
Due to the prolonged economic fallout, more and more California REO properties are flooding the market these days.
The court house auction sales have remained steady with the average discount at which they are being sold is around
twenty eight percent off of the FMV Fair Market value. Notices of trustee sales have climbed to astronomical
levels. At one point, banks were so bogged down with bank owned properties that many of them placed temporary
moratoriums on foreclosures.
It's All About the ROI...
Here is the bottom line; if you are looking for an avenue of real estate investment (or any investment for that
matter) that has an excellent ROI Return On Investment, California REO properties are an awesome option. You will
be able to buy properties at pretty amazing discounts.
According to numerous real estate experts and real estate watch groups, California REO properties will continue
to be great buys as long as default notices remain at record levels. The number of foreclosures lenders take back
because they pretty much received no bids at the auctions is alarming.
Considering the fact that the amount due to the financial institution is almost always way more than the Fair
Market Values of these properties, only a small number of foreclosure auctions actually result in a successful
sale. At that point, that particular property "goes back" to the lender. It becomes a real estate owned property,
better known as a REO.
Watch The Real Estate Owned Property Signs
The clear signal of the popularity of Real Estate
Owned properties is that auction sales are having a hard time moving the properties and the lenders continue to
confiscate the properties and put them up for sale. Naturally, prices are scaled down dramatically once the
properties fall back to the lenders because the banks have to get rid of them fast.
Here are some of best routes to get into real estate owned
properties. You can join a local real estate association and network with investors who focus on bank owned
properties. Cities like Los Angeles and counties like Orange County and San Fernando Valley have plenty of
opportunities to network.
A Final Note on California REO Properties
However, the best route is start online; use the
Internet to get educated on BPO’s Broker Price Opinions and to learn how the California REO works. Get to know
which banks are holding large inventories and find out who the managers of those departments are. Also find
out which real estate company they use to move their properties. You can grab REO Listings and cut right to the
chase. You can also find a REO Specialist to help you
find and seal deals. Take the information you’ve gathered and start making some deals!
Source: Joel Marks, REODr.com