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whats up everybody steve here shadow inventor were gonna show you exactly how to find the shadow inventory in your local market but first lets discuss exactly what is shadow inventory shadow inventory is essentially properties that have been foreclosed on and now are reo real estate owned properties by the banks however theyre not released to the open market until a later date now these properties can be held back from the open market for weeks months or even years and ive personally seen this in the last real estate recession when we were listing reo properties you see in most cases these reo properties when theyre taken back by the banks they have contractors go in and they have a sign in sheet usually posted around the front door somewhere now this sign in sheet shows exactly when contractors were in there the dates and what they were doing in that property whether it was regular maintenance or if it was some sort of renovation or repair item some of these reo properties that