REO stands for 'Real Estate Owned' properties. REO properties are known as bank owned residential property, bank REOs, house foreclosures, or simply just an REO. REO companies are businesses that deal exclusively with these investments. This article will discuss REO companies and the phenomenon sweeping across the U.S.
Foreclosure has been all over America for the past couple of years. This sensation is expected to continue in the next 2-3 years or even longer. As a result, foreclosure property investment has become an industry unto itself.
Many homes in the U.S. are currently in different stages of foreclosure. Because of this, companies that are fully dedicated to the acquisition and resale of REO & bank owned residential property have been springing up all around the United States.
These companies are called "REO companies" or "REO asset management companies". As foreclosure properties were just beginning to appear in the news headlines, various investors and real estate professionals began to approach banks and lenders for their lists of bank REOs.
These banks supplied the lists, and also set the selling prices for those homes. Previously, making a foreclosure property investment was basically an informal process done on a bank-by-bank, house-by-house basis. But, this changed with the tidal wave of foreclosures sweeping across the United States.
Banks and lenders were literally being inundated with foreclosure properties every week and began to seek a means to cut their losses and unload these bank REOs. Enter the American entrepreneurial spirit. Specialized real estate companies began to take shape.
REO companies deal only with drained real estate, including bank owned residential property, homes in various stages of foreclosure and properties that are in jeopardy of foreclosure. Many businesses claim themselves as "REO asset management companies". But, most are not making any money.
This is due to lacking on one or more of the following: experience, strong management, funding/cash flow, relationships with banks and lenders, networks of realtors, contractors and appraisers, etc. The REO companies that are profitable have ALL of these attributes and proven business processes as outlined on my website below.
