26 January 07 - 17:07Investing in Bank Owned Homes

A lot of people have heard about foreclosure investing as a way to build wealth, but have shied away out of fear that it requires lots of money to get started, with all that cash tied up and at risk for years. Nothing could be farther from the truth. It's possible to get started in real estate investing with just $10 of your own funds and to receive profits of $10,000 or more in just weeks.

Indeed, with more and more foreclosed houses coming on the market than ever before, there's never been a better time to get started. Let's go step by step through process of investing in bank repossessed homes to give you an idea of what's involved. By doing several deals like this each year, you can earn $50,000 or more in your spare time with next to no risk.

Investing in Bank Owned Homes

When a bank forecloses on a homeowner, it is required to hold a public foreclosure auction. If there are no bidders at the auction, the bank that is foreclosing ends up owning the property. The property then becomes known as an REO - Real Estate Owned by the bank. An REO is also known as a bank owned home.

Banks do not want bank owned homes and will often take large losses just to get rid of them. Bank owned homes that you should focus on are those that were bought through a conventional loan, not one backed by any government agency. Bank owned homes that had conventional loans on them before they were foreclosed upon will have enough profit margin in them to be worth your time.

To find bank owned homes to invest in, you can follow the preforeclosure notices in your local paper or online at foreclosure listing sites or you can call the foreclosure attorney after the scheduled date of auction. (more)

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