REO, or Real Estate Owned, properties and is the designation for properties with mortgages that have gone into default and been reclaimed by the lender, be that a bank or a mortgage lender. To be designated as an REO the property must have gone through the foreclosure process and been repossessed. These properties are then put up for auction, and become REO once they have either failed to sell or have been sold back to the lender as the highest bidder. Once this process is complete, the property can be put up for sale by the lender.
Investing in real estate has long been considered one of the most stable and prosperous forms of investment as real property always retains value. Our financial analysts are adept at finding homes that provide an opportunity for ambitious investors to profit, working to connect these buyers to the property. Given that an REO puts the lender at risk of losing money on the investment, and they often become a liability that lenders are looking to dispose of quickly to help reduce their overall losses.
REOs are popular with home-flippers who seek to buy distressed properties at discounted rates and then refurbish the home for resale. When done successfully, this leads to potentially substantial profits as the house is moved again. As with any investment, this process is not without its risks, but our experienced analysts can help guide you through all potential outcomes before you purchase. Likewise, as the owner of the property, you may still have many other options that can help you recoup your costs.
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When a property isn't being sold immediately, for one reason or another, REOs can often be made profitable through rentals. While this isn’t the lump sum return that many people investing in REOs are aiming for initially, it does provide a steady income stream that is governed only in the success of the owner’s ability to keep the house occupied at a profit-bearing price.
Whether you’re looking to expand your assets through acquiring property for rentals or are looking for a quick return by flipping a distressed home, Trinity Financial’s team of analysts are there to help you turn someone else’s loss into your success. Call today and start seeing what Trinity Financial can do for you.