Buying REO Foreclosures – The Best Way to Invest in Real Estate

An REO is real estate owned by the bank. The term REO can be defined as a specific type of property, but in real estate this acronym actually indicates that the property in question has been foreclosed on and has been taken back by the mortgage lender or trustee.

Over the past few years, buying REO foreclosures has gone though a dramatic change and has witnessed a steep rise in sales.  In comparison to other forms of real estate investments, bank foreclosures are creating many new wealthy investors due to the potential return on investment these homes can generate.  In addition, the number of bank foreclosures has increased dramatically in numbers which allows buyers to hand pick properties that meet their specific needs and investment purposes.  In the marketplace today, investing in REO foreclosures has become a lucrative business for real estate investors.

Benefits of Buying REO Foreclosures

Buying REOs can be a very lucrative investment opportunity and a great way to get the best deal on a new house.  There are a variety of benefits to buying REOs including:

Minimum Risk – Among the different types of bank foreclosed properties – pre-foreclosures, foreclosure at auctions or HUD foreclosures — REOs offer the buyer the least amount of investment risk.  REOs are generally properties that have survived a foreclosure auction and now belong in the lender’s inventory of non-performing assets.  The banks maintain these properties and generally are free of liens and other encomberances.  

Availability – Compared to other foreclosure properties, REOs are easier to locate. All you need to do is to contact a mortgage company or bank.  They will provide you with a list of REOs in your area. Many banks have their own REO Departments and agents that will work with you directly to find properties available.

Below Market Value – One of the prime benefits of buying a REO property is most REO properties are available at below market value.  The reason for this is that the bank is liable for the taxes on the property and they generally prefer to sell it to you at below market value and get it off their books.

Great ROI-Return on Investment – Reselling a foreclosure home can provide a great return on your investment.  You may not be interested in buying a foreclosure property for yourself, but you still have the option to make a profit by reselling it. After all, this has been the most frequent practice used by many real estate agents to generate income. Moreover, a little renovation work can further add to the value of the property and generate higher returns.

Buying foreclosure properties is one of the best ways to generate profit in the real estate market today.  However, before you finalize your purchase, make sure you do your due diligence and research the property so you feel comfortable with the purchase.  It’s important to research as much as you can about the area, current housing prices, planned developments, proximity to stores, the town, etc.  This research can save you many headaches and problems down the road.

The Modern Business Management Supply Chain and EAI Solutions

After decades of investment in IT systems large and small, many companies are now faced with a frankly daunting array of hardware, software, operating systems, processes, tools and methodologies.

Some work, some don’t and with many, no-one has any idea what they do.

However, one thing is clear. If all these systems could talk to each other, share data and open up to internal and external systems, companies could generate significant productivity gains through minimal investment.

Today’s successful businesses are expanding to include markets and business partners from all over the world. As companies grow and business becomes more sophisticated, the need to connect and optimize integrated systems and information increases – inside and outside the organization.

Integration of information or enterprise application integration gives a vital competitive advantage. Mergers, acquisitions and global markets require an EAI solution from all systems and business partners to provide a competitive edge. And it has to be quick – when business terms have been agreed, the last thing anyone wants is to wait for respective business systems to be able to speak to each other.

There are now many EAI solutions available in the market, but to be effective they have to be affordable, fast to deploy, platform-independent and easy to use, customize or change. To put it simply, an IT integration solution should make it easier to do business and gain a fast ROI on IT investment.

More importantly, it needs to be unobtrusive, allowing business partners to keep preferred routines and systems, rather than forcing them to adapt. Integration solutions allow companies to maximize existing investment while also helping to implement new systems and technologies faster and more effectively. The application of integration has no boundaries, with hundreds of companies around the world already using them to deliver seamless solutions to specific business problems.

The power of integration can be seen in the depth and variety of applications for which it can be exploited. For example:

  • Creating seamless links between bill of materials and supply to ensure minimal stock wastage and efficient manufacture/assembly
  • An enabling tool for companies wishing to migrate to new enterprise wide systems in stages
  • Allows modification to be made to core systems that can be transferred to new version, ensuring companies remain eligible for standard upgrades.
  • Improve customer service by allowing orders to be received in customers’ preferred format and automatically converting and delivering these into core systems.

The list is potentially endless, with the only restriction being imagination. The effect of this capability for rapid change to the automation of business critical processes is very much a cultural one. It is now fairly straightforward to enable connections and utilize functionality across multiple and cross business systems and this means companies are able to offer services that they couldn’t before. This alone impacts other areas of the business and so the whole ethos of company operations comes under scrutiny.

This is why IT systems must be flexible, and remain flexible throughout their lifespan. Integration between applications and trading partners opens companies up and systems must be ready and able to adapt to ensure maximum benefit is achieved. There is little point in allowing customers to check stock levels prior to ordering if this information is inaccurate; it would cause more damage than good.

The proliferation of integration ERP solutions has been the most significant development in IT in recent years. Properly implemented within the business management supply chain solution, it has already reaped massive efficiency and profitability benefits for companies all over the world. It is only going to get bigger and companies should look closely at this technology.

Small Business Funding Investment Opportunities

You should never let a lack of funding stop you from attaining your goals in business, especially if that goal is to expand your business. There are many small business funding and investment opportunities that small businesses and entrepreneurs are able to take advantage of.

Funding sources, such as banks, government institutions, venture capitalists, and angel investors, are very diverse, so it is important to see what the requirements are for each type of lender or investor.

If you are seeking funding for an existing business or company, lenders are interested in finding out the history of your company. The kinds of things they will want to learn are things such as if your company has a good track record of management and performance skills. They will also want to know if you have the ability financially to be able to repay a loan, as well as what your current cash flow situation is. This will allow them to then figure if your business is capable of handling any extra debt. This is actually a good practice, because as much as you want to succeed, lenders want to see you succeed, as well.

Another factor that will come into play is you own personal credit history. If your own credit is great, you will get the loan; however, if you have problem credit or no credit at all, you may at first be declined, but you can talk with the lender to let them know what steps you have taken to turn your life and business around.

One way to make your chances of obtaining a loan better is to put up some form of collateral. This will help reduce the risk being taken by the lender in the event that you should default. This also shows lenders that you are willing to put your own personal property up for your business which shows confidence in your endeavors.

Sometimes, a loan will be declined because the presentation has been poorly written, there has not been enough collateral put up, there is not enough cash flow, or there is simply not the requisite amount of management experience needed.

Some of the main sources for small business funding and investment opportunities are:

Banks or credit unions, and sometimes finance companies are the primary sources of funding for small businesses. These institutions have small business departments that are experienced in handling small business loans. The best place to begin your search is at your own personal institution. It can work in your favor if you become more than just an acquaintance of the manager and the staff at the bank. Shy away from using the ATM for all of your business, and go inside and be friendly. This does not guarantee that you will get the loan, but it will help your presentation go much more smoothly.

As you can see, there is money out there for small businesses to take advantage of. With a carefully prepared proposal and the right approach, you will be able to obtain the funds that you need that will match your ability to repay.