This blog post reveals the best bonus strategies for getting more REO deals than you can handle at all times.

If you are concerned about competition in this business, you are not alone. Some buyers will have strategic advantages over others depending on their exit strategies, their buying systems and their financing among other factors.

Some of these advantages are visible to the bank who owns the property. For example financing: A cash buyer will most of the time have a significant advantage over a buyer who has to obtain financing.

That’s why most FHA buyers lose out on any super cheap foreclosure and REO homes.  The bank cannot be sure that the loan will close on time, and many bank owned foreclosures will not be eligible for FHA financing because they are in bad condition and need repairs.

Another great disadvantage that can separate you from the desired riches in REO are inspection contingencies. Professional rehabbers will often know what the property needs when they walk through for the first time. The bank’s formula does not want to have to mess with  the details of bad plumbing, or even worse conditions of the home.

So they prefer to work with investors who do not require inspection contingencies. This can be a bit of a conundrum, particularly for wholesale buyers.  Of course, you want to be certain that you are not getting into far bigger problems than you can recognize on first glance, and if you are planning to immediately resell the property to another buyer, you will find it tricky to stay afloat with these deals.

Guidance from a seasoned pro – and preferably an investor rather than a real estate agent – will go a long way.

In his REO Riches Formula, Jeff Adams goes into much detail about structuring, analyzing and flipping bank owned properties. If you are looking to get into that are aof real estate investing, this could definitely be worth a closer look.

The brand new program launches in October.

Tags: bank owned, buying foreclosures, formula, Jeff Adams, REO Riches, wholesale investing