Real Estate Deals and Where to Find Them
For investors seeking high-potential real estate deals, some of the best opportunities lie in exploring properties that are often overlooked, such as remnant and residual parcels, bank-owned properties (REOs), VA REO properties, county surplus lists, and auction sites like GovDeals.com and PublicSurplus.com. Each of these avenues offers unique advantages for real estate investors, whether it’s below-market pricing, reduced competition, or potential financing options. In this guide, we’ll explore where to find these real estate opportunities, how to acquire them, and what makes each type of property investment-worthy.
1. Remnant and Residual Properties
Remnant and residual properties are parcels of land or real estate that become available after large infrastructure projects, like highway expansions, are completed. These properties often have unique shapes, smaller sizes, or locations that make them ideal for niche development projects. State Departments of Transportation (DOTs) frequently list these remnant properties for sale on their websites or through their real estate departments. These properties may have specific zoning restrictions, so due diligence is critical before purchase. For investors looking to think creatively about development, remnant and residual properties can provide significant value with the right planning.
2. Bank-Owned Properties (REO)
Bank-owned properties, or REOs (Real Estate Owned), are homes that have gone through the foreclosure process and are now owned by banks or lenders. These properties are commonly listed at competitive prices, as banks are motivated to sell and recover the remaining mortgage balance. Investors interested in REO properties can search for them on bank websites, popular real estate platforms, or by contacting banks directly. Banks also collaborate with real estate agents or through a third-party asset management company to facilitate these sales. By working with a specialized REO agent, investors can streamline the process and may gain access to off-market deals with favorable terms.
3. VA REO Properties
VA REO properties are foreclosed homes initially purchased with VA loans, which then revert to the Department of Veterans Affairs (VA) after foreclosure. The VA lists these properties for sale to the public, often at below-market prices. Interested investors can find VA REO listings on the VA’s official website or through third-party listing platforms. A major advantage of VA REO properties is that they may come with financing options through VA Vendee Loans, which are available even to non-veterans, making the purchase process more accessible and affordable.
4. Private Auctioneers
Private auctioneers like Auction.com and RealtyBid host auctions for a wide range of property types, including foreclosures, bank-owned homes, and government-owned real estate. Auctions are a unique way for investors to secure properties at potentially lower prices, though a strong understanding of the auction process and associated risks is essential. Many auctioneers offer both online and in-person auctions, making it easier to access inventory across various locations. Before participating, investors should review auction requirements, including registration details and potential earnest money deposits.
5. County Surplus Lists
County surplus lists feature properties that have become county assets, often due to unpaid taxes or abandonment. These properties are frequently available at steep discounts, appealing to investors looking for affordable real estate investments. To access county surplus lists, investors should visit their county’s official website or contact the tax assessor’s office. Many of these properties are sold through tax lien or tax deed auctions, which offer investors the chance to acquire properties at a fraction of the market value. Each county has its own rules for surplus property sales, so understanding the local process is important.
6. GovDeals.com and PublicSurplus.com
GovDeals.com and PublicSurplus.com are online auction sites where government entities sell surplus assets, including real estate. These platforms often feature properties owned by cities, counties, and other public organizations that are no longer in use. Listings provide details such as property descriptions, photos, and auction terms, allowing investors to review options before placing bids. For real estate investors seeking unconventional property sources, GovDeals.com and PublicSurplus.com offer accessible options for finding unique properties that may be priced attractively.
Conclusion
Locating real estate deals outside of conventional listings can provide a substantial edge in today’s competitive market. Exploring remnant and residual properties, bank-owned (REO) homes, VA REO properties, county surplus lists, and auction platforms like GovDeals.com and PublicSurplus.com can help investors uncover valuable real estate at competitive prices. Each source has its own requirements, timelines, and considerations, so understanding these can streamline the acquisition process and lead to substantial returns. For real estate investors willing to research, navigate varied acquisition methods, and think creatively, these avenues offer promising opportunities for growing their portfolios and maximizing investment value.
