MSN money had an article showing that the safest way to invest in real estate for the newbie investors is buying bank owned properties.

According to Bankrate, its because 'there's no risk, no taxes, no liens, no tenants to evict".

Additionally, the article shows that the lender may be willing to finance the deal.

Let's think about this for a moment. "NO risk?". How can this be said anytime you are risking your credit and money? There is always a risk. Especially if you are buying at close to market rates which is what happens if the REO is a fairly nice home in a good neighborhood.

Remember, anytime you have quite a bit of competition, prices can be bid up.

IN reality, one of the lowest risk, highest yielding routes to investing in real estate is through wholesaling. Here you are assigning a contract for a fee, but only risking earnest money and/or option consideration.

Risk is taken one when one starts to KEEP properties.

3/9/2010 03:53:44 am

Investing in real estate is something like having fixed deposit where your money will grow for sure.

keep up the good work! :)


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