I work with REO (bank owned) properties over the last 8 years. You just need to be careful and know costs. Not all are worth the investment
John W Smither
Coldwell Banker McMahan
859-537-0502

This post is a bit old but maybe you will see this. REO and Foreclosure properties can be a bit of a bear for new investors. You really need to know the condition of the home and if you can repair it with in your budget.

Here is an alternative offer.

I am in Scott County building custom homes. The average home has 20%-40% equity in it depending on the location. The home I am currently finishing is 39.5% off market value. I can easily sell the home with a great equity position to the buyer and still make a very nice profit. I can also retain some as rentals and leverage them to make money. There are other ways to invest in real estate that are low risk but yield a nice return. For more info please email me at donavondavis@wlgdirect.com. I'd be glad to give you more information and show you how I am doing this so you can too.

By the way, if you would like to learn more about investing in foreclosures in the Northern California Bay Area, feel free to join us at our free webinar.

https://www2.gotomeeting.com/register/957777760
(this link does work, i promise)

Denton Ward

Kimberely,

Your best way to start out is look for real estate investing clubs and companies. eRealtyInvestors is a national real estate company that specializes only in investment property.

We have investors from all over the nation call and purchase properties in different areas of the U.S. As well, we have located and tested markets that possess the necessary long term fundamentals for equity growth, as well as immediate cash flow.

Learn more about eRealtyInvestors: http://www.erealtyinvestors.com
What We Do For You: http://www.erealtyinvestors.com/index.php?id=31
Company Information: http://www.erealtyinvestors.com/index.php?id=45

Take the time to read about our company, and nonetheless, we have many helpful "Research Links" on our website; links that you should consider when analyzing investment opportunities.

Our services are free to investors!

See for yourself: http://www.erealtyinvestors.com/index.php?option=faq (see second question/answer)

I truly hope you find some resources, clubs, and organizations that can help you find what you are looking for.

Denton Ward
http://www.erealtyinvestors.com

The auction is a great place to get some ideas, you can also search the local MLS or contact a realtor in the area to help you find what you are looking for. Good luck.

Hi Kimberly, I am a REALTOR in Central Kentucky. I am selling a lot of Bank owned(REO) and HUD foreclosed properties in the past few months. I think it is imperative that you select a Realtor that has extensive knowledge of REO owned properties. Many things to consider. Extremely doubtful that you will be picking up a good deal at Master Commissioner's sell. Generally bank will buy back if doesn't bring what is needed to satisfy an already inflated loan obligation. Also be prepared to get a home inspection-definately a "Buyer Beware" situation. I'm closing on one next week bought back by the bank for $211,000. My buyer is paying $179000 and getting it via FHA (low down payment) with an FHA repair loan(203k)-we discovered some of the wiring had been cut and pulled out in the attic $3000 cost to repair. Great deals right now! I would not wait! Rates are great! Loans will be getting more difficult to get due to the sub-prime loan mess.
If you don't find the perfect agent contact me and I'll refer you to REO agent in your area.
Anita Pettit, GRI, REALTOR
Coldwell Banker McMahan
888-396-6115
anita.pettit@coldwellbanker.com

If you would consider Frankfort or Lawrenceburg, I'd be happy to talk with you about what's available here! You have a lot of options right now and from other answers I've read, a lot of good suggestions! Always keep it fun! Starting small is a good idea too!

wait

prices declining

anyways

have fun

good luck

Kinberley,
I work with investor in the Lexington and surrounding counties. If I can help you please email your critria to TriciaWinter@insightbb.com.

Kimberley of course a good agent will have all the tools to find those homes for you. If you want to start your search first try Realtytrac.com. They track homes in; auctions, preforeclosure, and foreclosure. It is a paying site you it is not free but if you are serious about this then they have a good bit of information for the serious investors. If you need a top agent in your area drop me a line and I can refer you through our international network to a top agent in your area through the Realogy group. While I am with Coldwell Banker you might not be referred to a CB agent but to one of the top ones in your area. We have to be experienced, trained, and certified to be able to work with referrals so you would be in good hands.

If you like just drop me a line.

Larry Story
Coldwell Banker Triad
larry.story@coldwellbanker.com

Here's a link to real estate investment clubs in Kentucky. There are a number in Lexington. Attend some of their meetings. That'll give you a lot of information on real estate investing in your area: http://www.creonline.com/real-estate-clubs/ky.html

Kimberley,

Your question reminds me a little of the original Willy Wonka:

Q: Is this some kind on Fun House, Wonka.
Wonka: Why? Are you having fun?

Sigh, I always loved that line! But, I digress.

There are many buyer's agents out there who I am sure would be interested in talking to you. I would shop a few realtors, explain your goals, and determine which one can help you best to attain your goals.

They are your advance men/women in your efforts to successfully invest.