REO Funding Loans

REO stands for Real Estate Owned by the bank. An REO is a property that has been foreclosed upon and is now available for purchase.

REOs are a great source of discounted distressed real estate for investors. There frequently are some downsides as well. Many times the house has been vacant for some time and is particularly run down. Or, vandals may have taken the opportunity to steal the copper plumbing, which can cause water damage, not to mention the costs involved to replace the plumbing system.

A good way to find REOs for sale in your area is to do a simple Google search for the term "REOs for sale in <insert your city and state>". The results will show many options to find good deals. Ask around your local REIA (Real Estate Investor's Association) to find out who are the primary REO listing agents in your area. Go to them and let them know the types of properties and the zip codes you are focusing on.

When you make a purchase offer on an REO, you will need to also include a pre-qualification letter that demonstrates that you have the ability to pay for the house. You can use our FREE
Proof of Funds Letter as your pre-qualification letter.

Sometimes, the seller of the REO will require a Bank Statement showing you have access to the cash needed to close on the purchase. We provide this service, called a Hard Proof of Funds, which provides you with a current Bank Statement showing the cash available, along with an accompanying letter stating which property the cash will be allocated for.

Ideally, your offer will be accepted and you will be able to find a buyer to whom you can sell the property, and pocket the difference as profit. Under the best of circumstances, you will be able to flip this deal in a back-to-back same day transaction. In those cases, our One Day Transactional Funding program is a great fit, and very inexpensive. You may find that upon acceptance of your offer, a deed restriction is part of the requirements of the seller and you must hold the property for 30, 60, 90 or even 180 days. When that happens, you can use our
Extended Transactional Funding program, which allows you to hold the property for up to one year. 

Contact us for more info