Alex Zylberglait currently works as the senior managing director of investments at real estate brokerage firm Marcus & Millichap, where he specializes in the differing needs of commercial properties. Before joining the team at Marcus & Millichap, Alex Zylberglait gained experience as an advisor for different financial institutions with Ernst & Young. While there, he primarily dealt with the disposition and evaluation of non- or under-performing assets and REOs.

Real estate owned (REO) properties are properties that are reclaimed by the banks or lenders that originally financed them following a foreclosure or default of the mortgage loan. When no potential buyer offers up enough to cover the amount being sought at an auction, these properties end up back in the lender’s portfolio. These properties can consist of condominiums, townhomes, detached houses, or even land. REO properties are often popular with real estate investors, because there is a potential to acquire them at a significant discount.

Banks or other lending companies with REOs sometimes attempt to sell the properties without the use of a real estate agent, by listing them online or contacting customers looking for homes directly. Buying an REO property can be a risky proposition, as it typically means buying as is, complete with any potential problems. Even so, REO properties remain popular, as buyers have the opportunity to acquire properties for significantly less than their market value.