Many real estate agents have given up.
Many feel that the industry will no longer recover.
But not everything is lost.
There are opportunities in the market that offer promising income for agents.
One of those is the Real Estate Owned properties or REOs.
In order for one to see its earning potential, he has to understand how the REO game works.
Understanding REO: As mentioned above, REO stands for Real Estate Owned.
This may also be referred to as bank owned properties.
These are the properties that the bank or lender repossessed due foreclosure.
These properties failed to sale on short sale or auctions.
The said properties will form part of the bank's growing inventory of foreclosed properties.
A large inventory of foreclosed properties is not good news for banks as they cannot earn from these properties.
They need to sell them right away to recover their losses and avoid incurring additional expenses.
Why enter the business now? Many think that making money from the real estate market is long gone.
But this is not the case.
In fact, now is the best time to enter the real estate market, particularly the real estate owned market.
The REO market is the most promising market in real estate today because of the number of foreclosed properties owned by banks.
Bear in mind that banks will not earn from these properties unless they are able to sell them.
Banks cannot sell these properties on their own.
Aside from the volume of the property they need to manage, they do not have the time they need as well.
Managing REOs is not a simple task.
This is why they need competent agents to handle the properties for them.
Foreclosures present better opportunities: REO is not a temporary fad as its market is here to stay.
In the recent years, the number of foreclosed properties has increased.
The increasing number of foreclosed properties in the market is bad for the real estate market and economy in general.
However, the market has the capacity to repair itself.
With great choices, affordable prices and convincing agents, buyers are sure to show up.
Another great thing about the REO is that it presents more opportunities for earning.
The needs of the banks are not limited to the selling of REOs.
They have other needs including BPO or the Broker's Price Opinion.
The BPO is needed to assign values to the REOs.
Banks will also need agents to maintain and improve their property.
They need to be in good shape to attract buyers.
How to get started? Start your REO business now.
What you need is to learn how to enter the market.
But it does not end there.
You need to be familiar with the REO cycle.
If you are aware of the process, you will less likely incur mistakes and you will gain the confidence of many banks.
To do this, you have to educate yourself.
There are many reliable resources online.
But it would be best to have a reference that has everything you need to know about REOs.
Books like the REO Boom present all the information that an agent should know to be successful in the business.
REO is the new way of doing real estate business.
It sees great opportunities in today's market even if many have given up.
But in order to be successful, you have to arm yourself with information.
REO blogs and informative books like the REO Boom can be a lot of help.