Is anyone familiar with REO Auctions. To be clear, these are not the auctions we all are familiar with where before a property becomes a full blown REO, what I am referring to is when the lender or Asset Managers who own the property then they will have auction companies sell these properties at auctions open to mass public and from what I hear these auction companies provide financing as well. Does anyone know about this? One of my clients just told me how he purchases at these auctions and when I looked at the properties online, they were great deals. For obvious reasons, he did not want to elaborate as which auctions, he purchased the properties from.
Generally speaking, when an REO is sent to auction it is done so as the next or even the last resort. I have not met or interacted with any asset manager or default management companies who use the auction as their first means of liquidating the property.
With that being said, yes, you can get great deals at auctions…but keep in mind that there is a reason they are forced to sell at auction. Something is wrong with the property to the point that it did not sell on the open market. Which generally means you will be needing lots of money to fix it up. But not always.
GooD LucK! :beer