Buying REO properties is a good way of buying properties at below market value. REO properties are properties that are own by a bank. An REO is a "Real Estate Owned" property that has been through the foreclosure process, and has been purchased at the foreclosure auction by the lender.

The lender takes the responsibility of paying the junior liens, and to avoid this, they take the property to auction.

Buying bank REO's is a game and a competitive one at that. You need to have at least a better understanding of the rules of the game. How you play the game and your success at the game is up to you. It is up to you to take action and do something with this information.

The thing about this kind of setup is that the investor must buy all of the homes in a package - whether they are vacant lots, burnouts, or condemned. AND - they are not in one location but spread out all over the country.

When buying in bulk, the price of REO properties is reduced, keeping it cheap for the investors. Finding the market value of each property would help in determining the purchase price of an REO.

Banks may accept an offer below the market value just to have the properties off their hands. They need to minimize their losses and this is impossible to achieve if they have several REO properties under them

The buyer can inspect an REO Property before buying them in prder to know the repairs that the property will be needing. The bank allows the property to be inspected and help to get the property off their way the soonest time.

One thing to remember when buying an REO property. It's sold in "As IS' condition, meaning the bank will not shoulder any repairs needed and the buyer should take the property under its current condition.