3 Types of Properties

REO: the accounting term banks use to categorize properties they have taken back in foreclosure.

Short Sale: properties that are technically in default but have not yet gone through foreclosure.

Estate Sale: usually the result of a homeowner’s death. When sibling children inherit, they often see dollar signs and are hopeful for a windfall. The reality is that the inherited home is usually old and needs a variety of repairs, systems upgrades, or just downright remodeling.

You’ll learn how to decide which properties are appropriate for flipping versus renting. Between wholesale, flips, and rentals, you can use just about any kind of property if the terms are right. Depending on where you are in the country, your area may have a lot of REOs or Short Sales. Perhaps you live in Houston, Texas, certain parts of Georgia like Macon, or Jacksonville, Florida. Many areas in North and South Carolina and even Virginia are still digging through a lot of bank inventory.

Other areas have made dramatic improvements. They’re in a reemerging economy, but some emerge faster than others because they started the recovery phase earlier. Phoenix, Arizona was through the roof last year and the same with Southern California. Areas like Laguna Beach appreciate at 15% per year annualized. That is amazing.
Other areas like western Pennsylvania never suffered much. The economy held fairly stable, yet there were certain pockets where people were outbidding each other for properties. Most of the bank-owned inventory is gone there.

Targeting Properties

In any case, the information is valuable. If you’re working with Investors who are flipping, typically the best opportunities are going to be REOs, Short Sales, and Estate Sales, because the properties can be purchased at a favorable price relative to the surrounding market. Granted, these properties will need work, but that’s what flippers do. They intend to work on properties and improve them. Let me show you where your Investors are going to find properties, whether they work with you or not.

How I Did 110 Transactions A Year With NO Assistants…And You Can Too… Get My Case Study Now>> “Guiding You to Massive New Wealth in Real Estate in 1 Year or Less Guaranteed!”