If you’re considering investing in REO properties, perhaps you’re new to real estate investing. It’s a good thing that you’re reading up on it before the fact, because you’ll be able to save yourself a lot of time and trouble if you pick the right investment properties right out of the gate, and don’t waste your time making a lot of rookie mistakes.
If you’re looking to invest in bargain property, REO properties are not the way to go. While they usually are bottom-of-the-barrel as far as price goes on the open market, you’re not going to find any really amazing deals by going to a real estate agent. You’re going to have to invest in foreclosures, and it’s best to stay away from properties that have a mortgage. Don’t heed that advice, and you’ll find out soon enough why.
Foreclosures that eventually become REO properties obviously always start out with a mortgage (which is why the bank ends up owning them). Tax foreclosure properties, on the other hand, almost never have a mortgage by the time they make it to tax sale, because tax payments are wrapped in mortgage payments. Mortgaged properties never end up at tax sale – the bank will pay the taxes, and then foreclose themselves.
The only surefire way to get unmortgaged property – a.k.a. “free and clear” property – is to buy tax sale property directly from the tax delinquent owners – after the tax sale. Most investors don’t realize you can buy these properties from the owner after the tax sale, so you’ll find very little competition here.
But even better is to never own any property at all. You can make some serious easy money by collecting mortgage and tax foreclosure overages for their owners. Overages are the money left over from the winning bid at sale, after the mortgage or tax encumbrance has been paid off. Most owners don’t realize they’re entitled to these funds – they think the bank or government just gets to keep this money.
So the money just sits there, until after a certain period of time, it legally becomes property of the government. There are billions of dollars of these funds sitting in the government coffers waiting to be collected.
Through a little-known legal loophole, these types of funds aren’t subject to money finder fee limits. So you can charge up to 50% for your service – and should. Without you, these owners are almost guaranteed to lose all of the money they have due and owing to them.
You’ve got to know how to find lists of these funds, and how to find and approach these owners so that they don’t try to collect without you and avoid your fee.
So where to find records of these funds, and how to find their owners? Read the *free* Hooked On Overages “Insider’s Guide.” Visit http://Tax-Sale-Overages.com now.
Or, learn insider deedgrabbing strategies from this *free* report. Visit http://DeedGrabber.net now.
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