REO stands for “real estate owned” and it refers to prop¬erty that a lender has taken back through foreclosure. Lenders hate this kind of property because on their books it shows up as a liability instead of as an asset. Therefore, they are very anxious to get rid of REOs. However, not so anxious that they’re willing to take a loss if there’s any way to avert it. The big plus for you in dealing with a lender over dealing with a home seller in foreclosure is that it’s a cleaner deal. There’s no crying or recriminations. Also, you can usually get title insurance and sometimes the bank often will even help you with the financing! The downside is that lenders don’t like to admit publicly that they have a REO problem. Many won’t admit they even have any REOs. Thus, you can’t usually just walk in and ask to buy one. (REOs show up as liabilities on the books of lenders. Too many REOs lead to insolvency.) On the other hand, the lender wants to get out from under the REO by selling it, therefore it needs you.

One of the best ways to find properties is simply to drive through the neighborhoods in which you’re interested. You can think of this as your “farm.” You’ll define certain neighborhoods and on a fairly regular basis drive or walk them. Look for signs that indicate a person is getting ready to sell a home, such as painting and fixing it up. When you find a home that looks suitable, stop by and engage the seller/owner in discussion. Find out what the asking price is and any special features. Then check it out: do a CMA (comparative market analysis).

At Epcot, a 300-acre park at the vast Disney World resort near Orlando, Fla., there are 11 massive pavilions that represent nations around the globe. The Mexico Pavilion resembles an Aztec pyramid, the United Kingdom Pavilion includes a reconstructed English city with a sampling of architecture from several time periods, the Canada Pavilion includes outdoor scenes such as a waterfall and gardens, and the Germany Pavilion features a Biergarten with traditional food.