Making It up on Volume

Fruits of foreclosure
This year, Davis of Indy REO figures on selling 300 homes that lenders foreclose on and turn over to him to put back on the market. In the past three years he has doubled his staff, to 12 people, to keep up with the business.

Indy REO makes money by taking a commission on each sale, like most real estate brokers do. But income isn't as high as selling new or conventional properties because sale prices are discounted.

"The only way you're going to make money on these foreclosures is to do volume," says Davis.

Here's a bonus story:

REO Horror Story: Duplex Dilemma
So, what happened to the not-so-popular duplex? Despite its ugly duckling status, the property finally sold at auction, landing in the hands of a real estate investor.

Whew!

This post inspired by Calculated Risk.