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Flipping Houses: Buying and Selling REO Homes

If you’re looking for a great way to make a quick buck, you’ve got to try flipping houses. Flipping is simply defined as the purchase of the real estate with the intent to sell the latter for profit.

By: Anthony T. Watson
Category: Real Estate
Posted: Jun 22, 2010
Updated: Jun 22, 2010
Views: 68


If you’re looking for a great way to make a quick buck, you’ve got to to try flipping houses. Flipping is simply defined as the purchase of the real estate with the intent to sell the latter for profit. This simply means that that the main task of a flipper is to purchase an investment property, then quickly sell or “flip” it at a much higher price.

One of the ideal properties to flip are bank owned homes or real estate owned properties. Simply known as REOs, bank owned homes are properties foreclosed by banks and lenders but weren’t sold at foreclosure auctions. Here are the reasons why an REO home makes a good flip:

• For starters, bank owned properties are cheap. You can buy them for pennies on the dollar because the banks that owned them are having trouble with their huge inventories of REOs. And because they are not in the business of selling real estate, banks and lenders are losing money just by having these “non-performing assets” listed in their books. In addition, industry regulations require them to clear their books of such properties, which is why banks are willing to sell low than not make a sale at all.

Bank owned homes are everywhere, which makes your job of flipping houses much easier. If you’re following real estate news closely, you’ll learn that there’s a glut of bank foreclosed properties in the market today. This means that there could be a potentially good investment to be had within a mile radius of your home. And with lots of REOs in the real estate market today, you don’t have to scour dozens of neighborhoods or go house farming just to find a property that you can flip.

• Contrary to popular belief, there are lots of buyers of bank owned homes in the market today. Because they are cheap, many retail buyers and real estate entrepreneurs are clamoring to get their hands on these affordable properties. So if you’re going to invest in REOs, it would be easier for you to resell these houses since there are lots of end buyers waiting for them.

But before you choose the bank owned properties to flip, see to it that they fit the taste and preferences of your intended buyers. Investing in REOs won’t do you any good if your target customers don’t patronize the “product” that you’re selling.

To learn more about flipping houses or investing in REO homes, go to www.RehabList.com.

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