Today I want to wrap up my foreclosure investment strategies list with some information about buying wholesale properties that are bank owned or REOs. Many current real estate comps have REOs.   You can use your InvestorCompsOnline access to research these significantly lower priced properties and also use your account to make educated bids.

One way to obtain the best price on foreclosure properties is to seek out private investors who specialize in wholesaling.  Some investors and investment groups purchase entire bank portfolios consisting of dozens of bank owned foreclosure properties.  Also known as real estate owned (REO) homes, these properties are houses that did not sell at auction.  One of the biggest advantages of REO property is houses are sold with a clean title.  When banks regain ownership of foreclosure real estate they remove attached creditor and tax liens and commence with eviction action when foreclosed homeowners refuse to leave the premises.

Investors who buy homes in bulk obtain wholesale pricing and pass savings along to individual buyers.  REO homes can often be purchased at 20- to 30-percent below market value and provide investors with instant home equity.

It is crucial for real estate investors to become educated about all facets of buying foreclosure properties. Many newbie investors are tempted by the low price tag of foreclosures, but fail to realize the costs associated with rehabbing the property.  Foreclosures, short sale and bank owned real estate nearly always require some level of repair.  Investors must take time to calculate the true cost of the property before making an offer to buy.