Within the realm of real estate investing, each type of investment (foreclosures, fixers, land, REITs, etc) has its good and bad times to buy. To be a successful investor you need to be able to identify not only which type of investment is the best at any given time but also which sub-category within that investment type you should look to specialize in, and when in the market cycle to buy.

Perhaps you are new to real estate investing (or not) and have heard that foreclosures currently against foreclosures so unless they too become a foreclosure they have no viable way to sell their home. This means that we as investors will have a very hard time finding a property to purchase with equity in it, at this stage of the foreclosure process.

There is one segment within this first stage to which we should direct a little bit of extra attention: short sales.abound and offer the best way for investors to gain instant equity in a property. This may well be very true. But the designation “foreclosure” is a general term comprised of many types of properties. Understanding the different types of foreclosures, where in the time line a particular foreclosure stands and which type of foreclosure offers the bet deal is critical to your success as an investor.

Along the time line of the foreclosure process, there are three basic areas that present buying opportunities for investors. The first of these has investors buying before the foreclosure auction. The second opportunity comes through buying homes directly at the auction. The third and final possibility is to buy properties after the auction is over, either directly from the bank or from an auction company. These bank owned properties are referred to as REO’s or Real Estate Owned. Each of these stages in the process provide unique benefits as well as challenges. The smart investor will need to contrast the pros and cons of each method in order to find the best and safest investment opportunities within the broad field of “foreclosures.”

The first opportunity for foreclosure investors, buying before the auction, encompasses the period of time when home owners are behind on their payments and realize they are in danger of losing their home but have not yet been foreclosed upon. This sub-category will include listed properties from the multiple listing service (MLS), short sales, notice of defaults (NODS) and notice of trustee’s sales (NOTS). For a number of important reasons, this is not a good time for anyone to be attempting to sell a home through “normal” retail channels. The sluggish nature of the housing market, the excess low priced inventory on the market, lending resrictions, and the anxiety of potential buyers willing to sit on the sidelines and wait for conditions to improve combine to make selling retail nearly impossible for most home owners. Sellers cannot compete against foreclosures so unless they too become a foreclosure they have no viable way to sell their home. This means that we as investors will have a very hard time finding a property to purchase with equity in it, at this stage of the foreclosure process.

There is one segment within this first stage to which we should direct a little bit of extra attention: short sales.

A short sale occurs when an owner is in trouble and a potential buyer comes in and negotiates with the bank to purchase the property for a value less than the amount owed on the loan. This provides both a potential solution to the home owner and a way for investors to get a home at below market value. The downside to this method is that with the huge amount of foreclosures blanketing the nation, short sales are taking way too long to complete (4-6 months on average) or aren’t going through at all. Some recent statistics show that only about 20% of short sales actual close. There are still many companies, Realtors, and investors that are quite successful in short sales, but this niche is difficult and not one in which most investors find success.

The second opportunity for investors comes through buying properties at the foreclosure auction or trustee’s sale. Note that some states liquidate foreclosures through judicial proceedings, while others, like California and Nevada, have trustee’s sales that are held on the courthouse steps. The positive side of buying foreclosures at auction is that the competition for the property you are looking to buy is not usually all that stiff. However, in trust deed states you must have cash or the equivalent of at the time of the auction to be the winning bidder. This eliminates a huge majority of potential buyers as most folks do not have $100,000 or more easily accessible in cash. Because REO properties are now selling for levels under amounts owed on comparable properties in the (NOTS) stage, buying at the trustee’s sale is not a viable way to buy in most situations. Most properties brought to auction at this point are failing to sell for asking price and are reverting back to the banks and becoming bank owned REO’s. Again, there are professionals who are buying good properties at trustee’s sales and auctions, but it is not an easy way for a beginner to break into the foreclosure arena and it is a very small segment of the market at this time.

By far the best, easiest, safest, and most lucrative way to buy foreclosure properties at this time is during the third and final stage of the process: when the properties that are not sold at auction revert to the banks and become REOs. Because of the huge volume of foreclosures now on the market and the record numbers that will be coming in over the next 12-18 months, banks are lowering their prices daily just to move inventory. Banks are also, in many cases, placing homes with listing Realtor agents that specialize in selling REO homes.

If the properties do not sell in a 60-90 day period (after initial price discounting) many properties are going back to the bank and being re-listed t an even lower price with an auction company or sold off in bulk REO portfolios of $5 million and up for literal pennies on the dollar. Another benefit of bank owned properties is that they are almost always vacant, making it easy to get inside and inspect them before purchasing. This is usually not the case when purchasing in other stages of the foreclosure process where most homes are still occupied by owners or tenants.

As an investor and licensed Realtor that has bought homes in all stages of the foreclosure process, both for myself and for my investor clients, I am advising my clients to take full advantage of what could be one of the best foreclosure buying markets we will ever see. I personally am based in the Las Vegas area and I have seen the Las Vegas real estate market go from the #1 hottest in the nation in 2004, to one of the slowest in 2007. In 2009 volume is increasing and Las Vegas is once again becoming one of the best and busiest real estate markets in the U.S. There is one thing and one thing only that is driving this change: foreclosures.

www.turnkeyhedgefunds.com

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What is meant by the 25% limitation on ERISA assets investment in a Hedge Fund?

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The Departments of Labor Regulation defines the use of ERISA assets. ERISA Assets include self-employed persons, and individual retirement accounts in pooled investment vehicles. Section 403 (a) requires that generally all assets of an employee benefit plan shall be held in Trust by one or more Trustees. Section 3(21) defines a fiduciary to include any person who exercises discretionary authority or control over the management of Plan Assets. Section 404 provides that a fiduciary must discharge responsibilities in accordance with fiduciary standards of care as set forth in Section 404 (a) (1); that is, (a) solely in the interest of the participants and beneficiaries of the plan (b) with the care skill prudence and diligence under circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and would like aims; and (c) with respect to an investment of a Plan Asset, by diversifying the investments of the plan so as to minimize the risk of large losses.

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Section 406 also prohibits a fiduciary from causing a plan knowingly or negligently, to engage in prohibited transactions with “parties-in-interest.” A party-in-interest includes the plan sponsor a person providing services to the plan, a person in control of the plan sponsor, a person controlled by any of the forgoing or an employee, affiliate or relative of any of the forgoing. Section 4975 of the Internal Revenue Code imposes excise taxes on “prohibited transaction” the definition of which is similar to the definition of prohibited transactions under 406 of ERISA. Taxes range from 15% of the amount involved each year up to 100% of the amount involved if corrective action is not undertaken within a certain time period. Section 502 (1) of ERISA imposes upon a fiduciary a civil penalty equal to 20% of the amount received from such fiduciary as a result of a settlement agreement or judicial preceding involving a breech of fiduciary duty. Section 406 also prohibits a fiduciary from dealing with plan assets for his own interests or account, acting in any transaction in which his interest are adverse to those of the plan or receiving consideration for his personal account in connection with any transaction involving plan assets. Section 409 imposes personal liability upon a fiduciary who breeches his duties and responsibilities. Section 405 provides that a plan fiduciary may under certain circumstances be liable for a breech of fiduciary responsibility by a co-fiduciary or for improper delegation of investment authority. Section 412 requires that with certain exceptions a plan fiduciary shall be bonded. Section 403 (a) provides that the trustee shall have the exclusive authority and discretion to manage and control the assets of the plan unless the plan provides that the trustee is subject to the discretion of a named fiduciary or the authority is delegated to an investment manager who is either a bank, an insurance company, or registered as an investment advisor under the Investment Advisor Act 1940.

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If the assets of the fund are considered plan assets the trustee may have improperly delegated its investment authority unless the managers and general partners of the fund are either named fiduciaries of the ERISA Plan limited partners or properly appointed as an investment manager within the meaning of Section 3 (38) of ERISA. Moreover, unless the fund manager is a bank or insurance company, it must be registered as an investment advisor under the Investment Advisors Act of 1940 to serve as an ERISA Investment manager. Under the regulations, if a retirement plan purchases an equity interest in an entity, underlying assets will be considered plan assets unless (a) the equity interest is a publicly offered security; (b) the equity interest is a security of a registered investment company; (c) The entity is an operating company; or (d) Benefit plan ownership of equity securities is not significant. The underlying assets are not significant where such assets represent less than 25% of the value of the class of equity security of the entity. Thus, for a hedge fund, a significant benefit plan participation would be an investment of 25% or more by a benefit plan investor in the hedge fund.

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It is to be noted however, that only an equity investment in an entity can cause an underlying assets of that entity to be plan assets. The acquisition of debt instruments will generally not result in plan asset treatment

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ERISA plan

Not under Rule 501(a)(1). Rule 501(a)(1) accredits as ERISA plan that has a fiduciary which is a bank, insurance company or registered investment advisor, or that has total assets in excess of $5 million. The plan, however, may be an accredited investor under a different provision of Rule 501(a).

www.turnkeyhedgefunds.com

Countless changes have affected the current real estate market; real estate agents have witnessed many effects that were brought by these changes that have included the constant consolidation of all the servicing and lending institutions. A growing interrelation has been spotted between various sectors and even mortgage servicing has faced significant changes. One of the most important changes that have been spotted is the one related to the foreclosure process and the need to purchase bulk reos. The reo disposition has been modified thanks to the constant striving to make the most out of various tracking capabilities that have invaded the current market. These capabilities are fully designed in order to streamline and manage the entire process that is related to the reo property. Nowadays, the reo property market is the main focus when it comes to the reo managers because many agents try to access a particular property before the foreclosure sale.

The ability to compete in the bulk reos for sale market has led to a consistent strategy that has to be used by every reo manager in order to become successful in this area of interest. The networks are expanded in order to help all the people who are interested in purchasing the reo properties because people have to be aware of their existence on the current market. The providers may also use this expanded network in order to provide their clients with the necessary lists that will consist of all the properties that are available in a particular area.

The service capability has been enhanced thanks to the improved quality control that does not allow the buyers to be fooled by false advertisements that are not likely to fit the real estate reality. The companies are using reporting technologies that have developed during the last years and many tasks can be taken care of thanks to these technologies. For instance, if you want to purchase bulk reos, you can be sure that there are some services that will take care of all the maintenance costs. Even the insurance claims can be streamlined in the purchasing process.

There are many factors to be considered when it comes to bulk reos for sale; for instance, the current reo offers may be very tempting for every potential investor because these offers may also come along with standardized pricing structures or bulk-billing capabilities. These capabilities are greatly simplified and their accountability will also be magnified in order to face all the current demands. The national service provider is fully capable of taking care of all the services that are implied by a reo transaction because there is a whole new approach when it comes to the supposed barrier between the foreclosure departments and the reo ones. The larger servicing shops were confronted with this virtual barrier too; its presence has impeded the proper cooperation between the reo departments and the foreclosure ones thus leading to a huge waste of time and money. This barrier has also contributed to all the major losses that were suffered by the service provider.

Nowadays, the foreclosure specialists are working closely with all the reo vendors in order to maintain the quality of the provided services; the reo properties must be protected from adverse weather conditions, vandalism and deferred maintenance. Therefore, as soon as a reo property has become available on the market, the vendor will be fully responsible in order to secure that particular property. The vendors will also have to inspect these properties and they have to do it on a regular basis. The vendors will also become quite familiar with the present state of a particular property and they will be able to help the potential buyer who will purchase bulk reos.

The property condition is to be surveyed and the vendors have to make sure that the surrounding market and the property value are kept close enough in order to appeal to every potential investor. The foreclosure specialists will also have to develop the necessary internal information; the information base is to be taken care on a regular basis in order for the bulk reos for sale to be updated.

Bank foreclosures get their name because the bank lender with a defaulted loan has, at the end of the foreclosure process, ended up with title to the property. Banks, along with other lenders this year, find themselves as managers of an increasing inventory of REO or Real Estate Owned property. These repossessed properties must be offered for sale as soon as possible in order to avoid a range of problems from security factors to the sheer holding cost of deteriorating assets These properties, which cover the spectrum of real estate assets from commercial to residential, from vacant lots to former speculator and investor assets are now flooding onto a cold sellers market in competition with similar properties, some with owners facing financial pressure to sell, others in pre foreclosure.

Some real estate investors and a few knowledgeable home buyers see the current market as the best opportunity in years to buy well. The home buyer?s intention is to stay put for a while. Buying to hold while housing prices correct themselves is likely to mean staying in your home for anywhere between 3 and 7 years depending on the state, county and metro location. Buying a bank foreclosure is one way the home buyer gets a double benefit from a down market ? the benefit of buying now at a discounted price, then building equity in the home faster as he rides out the market bottom and prices rise once more.

So, are bank foreclosures a good deal? Property selected carefully with attention to the very specific factors contributing to that deal, has the potential to yield more space for your investment dollar, or a move up into a more prosperous neighborhood, or simply affordability. Specific factors are the ?as is? nature of the property offered by the bank, the likelihood that the property has been in the foreclosure process and then in the bank?s hands for a while, the bank?s pricing policy and attitude to conditional offers. Most bank owned property is offered for sale through agents, the bid and counter offer process can be protracted, and vendor financing, rarely possible, is a completely arms length affair. Having said all that, watch this space; as the year wears on there can be no doubt that bank inventories of repossessed homes will rise to record levels in some foreclosure stricken states; bulk REO auction sales, aggressive marketing, enticements and deeper discounts will be required to move those bank foreclosures off the bankers? hands. It?s always going to be up to the potential buyer to do the due diligence, researching the condition of the property before making your offer is vital to ensure you get the bargain you intend.

Over the last year or so there is a real estate investment strategy that has been gaining popularity. While you may have heard of purchasing REO properties from the bank, the current state of the market has given birth to a new way to obtain real estate investment properties at a significant discount. This strategy is known as bulk reo real estate.

REO stands for “Real Estate Owned” and it refers to a real estate property that was previously a security for a mortgage loan. The previous owner defaulted on the loan and the lending institution foreclosed on the owner and took over ownership of the property.

REOs are a problem for lending institutions. These institutions are not in the business of investing in real estate. They are in the business of loaning out money. When a property in their portfolio reaches REO status, the institution is losing money every day that this property remains under their ownership. Their goal is to get the property off their books as quickly as possible so they can go back to doing what they do best and that is lending out money to people. Banks also get audited once a year and if they have too many properties with REO status, the management team of the bank gets in trouble.

Normally when the bank takes the property back at auction, someone that works in the bank would either buy the property themselves or they would hire a real estate agency to list the property for them. The real estate agency will list the property at full market value, unless of course the property needs a lot of work. If the property needs work, the agency would discount the price accordingly to compensate for the work that is required to complete the work on the property. As such, the only way you can purchase REO properties at a discount is if you either have an inside contact at the bank itself or if you purchase from a real estate agency a property that needs work.

However, because of foreclosures being at an all time high, many institutions are finding that the current system of handling REOs is not working. They have too many properties that are being foreclosed upon and with a slow market, the real estate agencies cannot move these properties fast enough. As a result, the properties continue to sit on the market and the lending institution continues to lose money on these properties.

As a result, the lending institutions have come up with a new way to get rid of their excess inventory and that is through a process called bulk reo packages.

A bulk REO package is a group of properties that have been combined together and marketed as one package. The package may consist of actual real estate properties of all types and sizes, non performing loans for sale or a combination of both. The packages are usually grouped by geographical location, but can also be grouped by property type nationwide. The financial institution calculates how much each property is worth in the open market and then applies a discount, typically at 50 to 70 cents on the dollar.

There are two ways you can make money with bulk REO packages. The first way is if you purchase them yourself or put together a team of real estate investors to purchase them. REO packages typically start at $5 million and can be as high as $1 billion dollars. These deals can be purchased from the lending institution directly or a third party who is responsible for finding buyers. This individual is known as the sellers mandate.

If you have access to the type of money required to purchase a REO package, you can make a significant amount of money. The properties in the portfolio are going to be in a variety of different prices and conditions. Some of them you will be able to sell right away on the open market. Others will require work to be done before they can be sold. The discounts on each property may be small or very large.

Suppose you purchase a REO package for 5 million dollars. The package consists of 50 properties at $100,000 each that are worth $200,000 once fixed up and sold. Each property on average costs $20,000 to repair. There are several ways you can make money with this package.

You can immediately wholesale the 50 packages to investors at a profit. If you sell each house for $120,000, you are still leaving at least $60,000 profit for the investor that is buying the property from you. After selling all 50 properties you will walk away with over $1,000,000 profit.

You can fix up the properties and sell them yourself on the open market. If you invest $20,000 into each property for repairs, you stand to make up to $80,000 profit per house. After selling all 50 properties you will walk with over $4,000,000 profit.

Another option is to fix up the properties and keep them yourself. You can rent each property out to tenants and collect rent. Assuming each property is a single family unit and you can produce a positive cash flow of at least $200 a month, you can net a positive cash flow of $10,000 a month. This is of course assuming that the money that you invested into acquiring the properties was borrowed money. If you paid all cash for the properties and repairs, your cash flow could be as high as $100,000 a month.

You can also create lease options on the property and rent the properties to tenants with the option to buy at a later date. A lease option is a great strategy to employ in this current market as there are a lot of people out there that want to buy a house but can’t afford the down payment. The tenant pays you an option consideration at whatever price you decide. Should they later buy the house, the option consideration can be used as part of their down payment. However if they fail to buy the house, you get to keep the option consideration and lease the property to someone else.

What if you don’t have access to the large amounts of capital necessary to purchase bulk REO real estate? There is still another way that you can participate and profit from bulk REO packages. Sellers mandates are constantly looking for new buyers that they can sell their properties to. If you can find people who are interested in purchasing bulk REO packages and you can introduce them to the sellers mandate you can earn a commission not just on the initial package but any future packages the buyer purchases from the sellers mandate.

How much money is possible for helping to close a REO transaction?

Typically the financial institution will pay 3 points, which equals 3% of the final sales price for the package. Half of that commission will go to the sellers mandate and the other half will go to the people on the buyers side. If you are direct to the client, you keep the full half of the commission for yourself. If not, you will have to split your half with whoever else is on the buyers side of the transaction.

Suppose you find a sellers mandate for an REO package and you are able to refer a buyer directly. The REO package is worth 10 million. 3% of 10 million is $300,000. You would split the $300,000 in half, so you would walk away with $150,000 just for making the referral!

If you are dealing with a larger package, the commissions become even more lucrative. A 50 million dollar package with the same scenario would net you a commission of $750,000!

If you are going to get into the bulk REO game, now is the time to take action! These bulk REO deals are only going to be available for as long as foreclosures continue to remain a huge problem right now. Once the bubble ends and the inventory goes back to normal levels, lending institutions will go back to the normal way of handling REOs and there will no longer be an opportunity.

Real Estate Foresight, Education, Tools & Support Lead to Success

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This real estate investing article is thoroughly designed to re-introduce you to the post- bubble real estate investing world of today. Most of your old books, manuals, courses and education materials on real estate investing are severely deficient in addressing the new methods of real estate investing today; the principles haven?t changed but the methods and opportunities sure have.

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Today?s real estate investor uses technology, networking, mastermind alliances, asset protection measures, automated prospecting, buying and selling systems as basic tools to greatly increase efficiency and productivity. One rule however hasn?t changed: ?Buy Low, Sell Higher?

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Gone are the days when you buy one month and flip the next for fast profit. Today you?ll find bulk R.E.O?s, short-sales, wholesaling, leasing with options to buy, owner financing, loan modifications, deeds in lieu of foreclosure, tax lien investors and so forth. Look for more and more auctions and automated short selling systems designed to expedite the process of liquidating excess property inventories at rock bottom prices.

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Private money is king. Hard money lenders and people with liquid cash or dry powder as it?s called are in positions buying properties in some cases at 11 cents on the dollar! It?s already happening; bulk REO packages selling 50, 100, 500 or a 1000 or more distressed, repossessed homes at a time are selling to institutional buyers and wealthy privately connected buyers every day. Homes that on average originally sold to unqualified buyers for $85,000 now routinely sell for $6,500 when bought in bulk at 50 or more. That?s 50 x $6.500 or $325,000, not the heyday price of $4,250.000.

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Today?s investor is a lead generating machine, one who sifts through volumes of properties and parcels out leads in all directions depending on the method best suited to dealing with the property in question. The words ?A real estate investor gets paid when they solve a problem? have never been more true than today.

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Beginning real estate investors: Beware, the sharks are in the water and there is blood in the streets; bottom feeders are quietly buying the cream puffs in these deals and re-parceling out the dogs to the unwary. Take time to learn and understand before you begin buying. Learn from people who know and are willing to tell you how to approach these markets. Millions are being made but not by the uneducated and unconnected.

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Today is the day that you?ll understand whether or not you?ll use real estate as another road to wealth. Here is where I introduce you to a well traveled and mapped out highway to predictable prosperity, it?s time tested and been proven to work, let?s see if you can simply follow the map which will guide you to this new stream of income.

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I?ll be your opportunity guide, the person who directs you into the fast-lane while you methodically leave that old 9 to 5 behind. All success begins with a plan; real estate is just a tool you use in planning an overall approach to living a well balanced and satisfying life. Once you find your sweet spot in real estate you?ll be one step closer to succeeding with near perfect performance in an enjoyable and prosperous endeavor.

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Currently you?ll find that the world is on sale and everything is negotiable, your ability to find, negotiate, structure, manage and market real property is the key to cashing substantial checks along the way. As with any trip it pays to plan and prepare properly by first knowing and understanding the rules of the road while easily avoiding the obstacles and roadblocks along the way.

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If you?re currently employed then keep that position until your real estate profits overtake your monthly take home pay by twice your current salary, then bank six months worth of wages before you contemplate leaving that old 9 to 5 in favor of fulltime investing. You may even choose to use real estate investing as a secondary income stream while you keep the regular J.O.B. (Just Over Broke). It is suggested that you have seven independent streams of income in order to truly be insulated against unforeseen circumstances that lead to chapter 11.

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Rule number one is ?Keep your overhead low? Your new offices will be considered your car, your home and local public places, these are all fine venues to carry out general duties and are considered ordinarily acceptable work spaces for the mobile investor in today?s real estate game.

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Remember this phrase ?There are Riches in Niche?s?? and there are a great many specialties to choose from in real estate, you should strive to become a specialist in 2 or 3 areas of expertise but not so many that you fail to master the fundamentals of each niche. You don?t want to be a one trick pony but you don?t want to be the proverbial jack of all trades and master of none either.

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You have no doubt heard that all successful people are most often masters of time management; it will serve you well to learn from the best right from the start while you refrain from constantly searching for new mentors to teach within the same subject areas. Limit the amount of differing advice that you get from competing resources so that you can maintain your focus on one proven step by step approach that has already been proven to work by following an existing blueprint, there is no need to recreate the wheel, use existing systems to leverage and compound your success and progress.

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Start by finding a guide, someone who has already researched, found and verified qualified resources that are proven success models, from here you can begin building your team. T.E.A.M. = Together Everyone Achieves More. There is no such thing as competition; you should consider it co-opitition or co-operating competition. There is plenty of opportunity for everyone, don?t let a scarcity mentality spoil your journey.

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There is an old saying in real estate and it states ? You get paid when you solve a problem? seek to be a problem solver and a solution provider throughout your networks and areas of operation and you?ll find greater opportunities to be of service throughout the your day.

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Here are a few of the choices you have to provide service in real estate: bird-dogging, foreclosure investing, creative finance, seller financing, owner financing, no money down,? private funding, notes & mortgages, commercial, residential, raw land, judgments, liens, flipping, wholesaling, sub2, auctions, probate, lease purchase, options, tax strategies and a great deal more.

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The key is goal setting and we?ll make it easy, starting out with just 30 minutes a day to read one chapter of real estate educational materials to help you fully prepare within 90 days to begin doing profitable deals while saving you time, money and frustration.

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Believe it or not, it only takes a short while to understand the principles, cement the concepts, instill the fundamentals and begin to build your network while designing your plans and preparing to implement your strategy using precise tactics to own your specific niche in real estate.

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The entire blueprint can be found at www.BeARealEstateHeavyWeight.com? and it is guaranteed to work when you do.

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?by Barton D Fenton???????????

I don?t want to jinx it, but it seems like something is going on in the secondary market for REO. In the last 60 days or so it seems like wholesale pricing is firming up. A lot of buyers who abandoned the market last year during the values crash are coming back and nosing around. They are even starting to bid again. Dare we hope?

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There is no question that the prices for California REO ? the most sought after product in the Country ? have come up a bit. There is a substantial speculation that we may be getting close to the bottom of the decline and it is time to buy again. Even though retail values continue to drop ? albeit at a slower pace ? wholesale prices have increased slightly and appear to be stabilizing. The gap between wholesale and retail is shrinking somewhat and may be indicative of a changing market.

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As one battle weary Bank Trader put it the other day, ?Maybe the light we are seeing at the end of the tunnel isn?t another freight train coming our way ? this time?. One REO manager for a local Southern California Savings & Loan told me that they had no present plans to sell bulk REO because in March they had sold over 400 units through retail real estate brokers. He said that since they closed most of them above 90% of the listed price, there wasn?t any need to sell wholesale bulk portfolios. He suggested I check back in three months. Another Asset Manager said his company was pulling all of the newer REO assets also, and transferring them to retail real estate brokers. He indicated that they would be recompiling REO ?tapes? with only the dated units because the retail guys were having surprising success selling the more recent low-maintenance stuff.

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Have prices finally come down enough to lure the buyers back? It was only a couple of years ago the banks (pre-bailouts) were scrambling to obtain liquidity by selling off distressed bulk real estate assets at prices very attractive to investors. The most popular exit strategy was as simple as ?flipping? the product to another buyer or liquidating through auctions. Last year as values declined at twice rate of the previous year, the flippers started taking a beating. Values were decreasing faster than they could move the assets. The prudent strategy became ?buy and hold?. This year as the price plunge has noticeably slowed many investors are finding that they can now acquire assets at prices low enough that they can immediately rent them out at a positive cash flow. How long has it been since that was possible without heavy leveraging? ?

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The entrepreneurs are returning to the market with new ideas on how to create profits. Some are opting to creatively move product as ?rent to own? packages. The marketing is easy. There are plenty of potential clients and the pitch is attractive. ?Lost your home? Credit destroyed? Move into a new home as a buyer ? now -with a small deposit and payments you can afford. We will record your option on title so you can benefit from the tax advantages of home ownership and we will report your payments to the credit bureaus so you can begin to rebuild your credit rating immediately!? Others have found some success converting vacant apartments into senior housing. It is still a buyers market. The product is out there and with a little creative thinking and imagination the opportunities are, too. The innovations these people come up with is one of the things I love about this Country. No matter the circumstances, the entrepreneurs will find a way to make things happen.

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Dare we hope that light at the end of the tunnel is daylight and not another freight train coming our way? Summer is here and historically the next few months should account for something like eighty per cent of SFR sales. Bulk sales traditionally heat up around the same time and according to WCB CEO, Ralph San Roman, bidding is lively and almost any available bulk assets generates immediate offers. Locally, real estate agents are saying they are busy again and getting multiple bids above their asking prices. So things appear to be heating up. Is it just a small summer ?bump? or are we seeing the beginning of some stability returning to the market?

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Always the optimist, this morning I pulled an old sign my father gave me out of my garage, dusted it off and hung it up. The message is simple? ?Please God, give me one more real estate boom ? this time I promise not to piss it all away?.

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Amen.

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