Before you buy a REO....

[Account Closed]

Hello Everyone!

I have been looking at REOs recently and have been under the impression that these can potentially be a good way to make some money. For all you REO investors out there, since I have not bought my first one yet, I was wondering what steps you go through before you make an offer on a REO. What do you do research on? What inspetions do you normally have done? Do you need to go out of your way to get any special insurance or check title? I know very little about the process, so anything would really help! Also if you know a great book on buying REOs I would definitely pick it up.

Thanks,
Colin

[Jon Holdman]

Process is the same as buying from any other seller. Find an agent, look at some properties, make an offer, haggle, get it accepted, get it inspected, get it financed, close. They're almost all listed with some agent on the MLS.

There will be an extra bunch of addendums. You usually get a Special Warranty Deed or some such rather than a General Warranty Deed. It will be a long, drawn out process to get to closing because the bank will have a hard time getting the paper work completed.

No worries about title.

Its really just an ordinary transaction.