What is SREO in real estate?

What is an SREO?

An SREO, or Schedule of Real Estate Owned, in real estate is a document that lists all properties owned by an investor, providing key details such as property type, acquisition date, purchase price, current market value, and mortgage information. It is used to assess an investor’s portfolio, often required by lenders when applying for a loan, to evaluate financial stability and investment performance. The SREO includes information on rental income and operating expenses, which helps investors illustrate the profitability and management of the investor's real estate assets.

A typical SREO includes details like:

1. Property Address: The location of each property.
2. Property Type: Whether it's residential, commercial, industrial, etc.
3. Date Acquired: When each property was purchased.
4. Purchase Price: The cost of acquiring each property.
5. Current Market Value: An estimate of each property’s value in the current market.
6. Mortgage Lender: The lending institution for each mortgaged property.
7. Outstanding Mortgage Balance: The remaining balance on each mortgage.
8. Monthly Mortgage Payment: The payment amount for each property’s mortgage.
9. Rental Income (if applicable): Income generated from properties that are rented out.
10. Operating Expenses: Expenses related to the upkeep and management of the properties.

SREOs help assess an investor's financial stability, the performance of their real estate investments, and their ability to manage additional loans.