A Bargain Isn’t Always A Bargain – REOs in Chicago and the Surrounding Areas
Investing in Chicagoland REO properties may seem like the thing to do these days but just because a property is being sold at a bargain price doesn’t necessarily mean it is a bargain. The number of foreclosed properties nationally and in the Chicago area has increased dramatically over the past year and the number of bank owned properties is not yet diminished. It is important to remember that the banks or lenders that have the property on there books want to unload it. What does this mean to you? Cash offer wins.
If you need to get a loan to purchase the property then you could be waiting a few weeks to acquire financing. If someone else has their eye on the property and walks in with cash you will be out of luck. No money, no property. The bank doesn’t care if you get the property or not, they just want the property off their hands.
If you are looking to buy an REO property for an investment in Chicago be aware of two factors: condition and location. Just because a property is inexpensive does not mean that it will make a good investment. Is it in a good location? Remember that location matters, whether you will be living in it or not.
What is the condition of the house. When it comes to REO property 9 times out of 10 you will not be allowed in for an inspection and buying sight unseen can be a real gamble. Do some research and find out what you can about the property before committing to buying it.
Certainly buying REO property can be a good investment but it can also be a risky one. Do your homework to make your Chicago real estate purchase a success.
