BULK REO investing is getting quite a lot of attention these days, with good reason. Bulk REO investing means generating a profit by purchasing and disposing of large groups of foreclosed property rather than doing it individually. Veteran investors who already know the ins and outs of bulk reo investing can make huge profits in a short amount of time. Being able to convert a huge pool of distressed asstes into a “gold mine” will give you a large commission of between fifty to a hundred thousand dollars at a time. This is why there are many new people flocking to the industry as it does pay our larger and faster then traditional real estate investors have known in the foreclosure investing arena.
Investors who have a list of buyers with capital in hand lined up and ready to move fast are those that succeed. However, even small bulk REO deals still mean big money. There are investors who will even carve out properties of nationwide tapes to grab the best deals. I have known investors to use their personal savings for a bulk REO purchase, just so they could get a slice of the huge profits by getting property far below market value. They then were able to put it back on the market and sell it for full price within 90 days. However, even if you don’t have personal money to spend on a bulk REO investment, you can find a money backer willing to partner with you for a fee.
It pays you to know how to find these types of deals. You do not need agents or brokers to find you these bulk reo assets. You also will find these deals on free online classified advertisting sites. When you find someone marketing these bulk reo properties, stay away from terms such as ‘seller mandates’ or ‘compiler’.
The best source of deals is to start calling Regional banks and credit unions. Just like every real estate or financial endeavor, remember that bulk REO investing does not need a huge learning curve to get involved in. You need some basic training on what to say, how to say it, and where to look and how to exit your way out of the deals.
The first thing you need to do is identify good opportunities. As an investor, it is your job to research banks before deciding approaching them so you dont waste your time. REO property statitics can be found using publicly available information if you know where to look.
The large dollar figures involved can be intimidating to a new investor along with the fact that perhaps the process for selling REO’s in bulk is not widely known to the general public.
When you recieve the tape from the bank, you need to do some due diligence so you can present it to potential buyers that it would most match their profile .
You can find that some tapes are in mixed condition, and there are times when the price matches the property, along with exceedingly low prices for damaged property. Understanding the estimated worth, will help you determine your fees. It is up to you to do the research so it is highly recommended that you take your time doing this before making a final deal to get the highest fee you can charge for finding great deals for resale.
Duncan Wierman is a founding member of Bank REO Property Deals. He has written a complete guide to the BULK REO industry to assist investors to be more proficient and to produce quality product. You can find out more about this concise guide at http://www.BulkREOPropertyInvesting.com
The Real Estate Disaster Continues…. But Can You Be Saved? Yes watch and listen… The ‘foreclosure phenomenon’ has plagued the housing market; bank repossessions, REO real estate, has become an uncomfortable norm in a housing market ridden with foreclosures. To get all the Free videos in this series go to www.ultimatebulkreo.com and get the video series on how to make 7323 in equity on one deal with Bulk REO Investing And FREE Gift 39 page Top Secret Bulk REO Insider Secrets Special Report. Many real estate investors have taken this opportunity to try to buy foreclosed properties through the “Short Sale” process, but have faced many unexpected obstacles while questionable marketing practices have begun to overpower the infomercial industry targeting new investors just wanting to capitalize on obvious potential. To get all the Free videos in this series go to http and get the video series on how to make 7323 in equity on one deal with Bulk REO Investing And FREE Gift 39 page Top Secret Bulk REO Insider Secrets Special Report. Mark Bradley, successful commercial and residential real estate investor, describes his process of disrobing the short sale real estate myth. Instead applies real estate principles that can land investors huge profits in today’s real estate market. In these videos Bradley describes how he broke down the time consuming short sale business into a 5 steps. If you fail to complete any of these 5 steps it is impossible to make any money in short … Video Rating: 0 / 5
How to Invest in Bulk REO and Non Performing Notes
Do you know how you can profit from bulk REO and NPN’s (non performing notes) and what the difference between them is? If you are a beginner to real estate investment, understanding the differences in bulk REO and NPN’s can help you determine the best way for you to make the most profit.
For one thing, bulk REO investing is becoming more popular as more banks are packaging their real-estate-owned to get foreclosures off their books. As a real estate investor, it is possible to get 50% off of the normal prices on these homes that might just need a little cosmetic work or minor repairs. You can make large profit quickly because risk is spread between real estate that has actual value and you might be able to have limited debt exposure because there are many investors that are willing to back those that are able to gain access to bulk REO sellers.
In fact, there are many people that make commission money by acting as the broker between banks and investors and this leaves no risk. When you consider 1% to 3% commission on a million dollar bulk REO package, you can see how you can make a lot of money overnight.
When considering the difference between bulk REO and NPNs, you have to be familiar with how you can make money with non-performing notes, also known as NPNs. A non-performing note is a mortgage that is at some stage of foreclosure, but not yet in the REO category. When a homeowner is obviously headed to the foreclosure stage, you might be able to make money by investing in NPNs, but the profitability and way you make profit with bulk REO and NPNs are dependent on the particular situation.
There are those that will sell these notes at deep discounts and it is possible to buy them and sell them quickly for profit. If you take this approach to dealing with NPNs, it is possible to make money quicker, without dealing with the homeowners that are behind on payments. You might be able to invest in a million dollars worth of NPNs for 20% of the unpaid principal balance, also known as the UPB. You would then sell them at 30% of the UPB to make your profit, for example.
There are a number of ways you can invest in NPN’s, including the “cash for keys” strategy or the “reduce the loan principal balance” strategy, but there are some that think the differences between bulk REO and NPNs are a matter of how “hands on” or involved you want to be in the transactions and the amount of risk you are willing to take on. It is possible to make handsome profits with bulk REO and NPNs, but you need to know what you are doing.
When it comes to investing in bulk REO and NPNs, you need to get the help you need to become an expert bulk REO and NPNs investor. As these real estate investment strategies become more popular, you can choose the right niche for your short term and long term real estate investing goals, but having real and reliable sources for your bulk REOS or NPNs are an important first step you will need to address.
Duncan Wierman is a founding member of Bank REO Property Deals. He has written a complete guide to the BULK REO industry to assist investors to be more proficient and to produce quality product. You can find out more about this concise guide at www.bulkreopropertyinvesting.com
If you are interested in getting involved in the bulk REO investment market, there are a few things you need to know. Finding the answer to the question, “what is the sweet spot price range?” is only part of what you need to know about investing in bank-owned real estate, also known as REO or real estate owned. These are properties that have already gone through lender foreclosure and it is better to purchase these properties at bulk pricing, whether purchasing one or one hundred bank-owned foreclosures, so this is when know what is the bulk REO sweet spot price range can be important.
If you have tried to purchase short sales to get a great deal on real estate purchases, you probably are aware short sales can take a year to complete, if they get completed at all. There are many steps involved, when you are dealing with the property owner and proposing a real estate deal where the bank loses money isn’t the most popular business proposition. The great thing about bulk REO investing is liens get wiped off the title, you don’t need to pay back taxes, back mortgage payments or worry about getting a title that isn’t clean.
The bulk sweet spot is the time period where you are able to purchase the property before it gets put into the retail REO listings. What is the bulk REO sweet spot price range? Most real estate investors consider deals that are offered at 50% of their normal value to be attractive, but this varies, based on the bulk REO packages you are looking at.
When you want to know, “what is the bulk REO sweet spot price range?” you need to know how to become the investor that gets a shot at these deals, while they are still in the “sweet spot”. Since this is the time you can get the best deals because the bank is able to unload several deteriorating assets at once, discovering, “what is the bulk REO sweet spot price range” is only one of the questions you should ask. The other question might be how to access bulk REO properties, when they are in the “sweet spot” position.
Finding the answer to “what is the bulk REO sweet spot price range?” depends on whether you can get the REO sellers to start calling you, when they have bulk REO packages they need to get off the books. As the bulk REO sweet spot becomes better known, there are likely to be more people taking advantage of the great potential that getting foreclosed bank-owned properties can offer, by purchasing them in bulk. While they are cheaper when purchasing them in the “sweet spot”, you need to have bulk REO sellers offering them at the cheapest prices.
By learning from experts in purchasing bulk REO, you can find out all of the things you need to know, in order to build a relationship with the lenders that are willing to offer you their bulk REO properties, when they are still in the “sweet spot” wholesale status. Discovering what is the bulk REO sweet spot price range is part of what you can expect to learn from those that are experienced in handling this type of real estate investing.
Duncan Wierman is a founding member of Bank REO Property Deals. He has written a complete guide to the BULK REO industry to assist investors to be more proficient and to produce quality product. You can find out more about this concise guide at www.bulkreopropertyinvesting.com
If you are wondering why invest in bulk REO, chances are you haven’t heard about the tremendous profit opportunity that exists by purchasing packages of bank “real estate owned” foreclosures and default homes. With the current real estate market the questions about why invest in bulk purchases can be provided with sound answers that make sense, if you are able to enter the bulk investing market.
Obviously, there are many investors that have taken advantage of single foreclosure homes and many home buyers are able to get a good deal on their home purchase. The great thing about bulk REO is that you are purchasing a package of foreclosed properties, which allows you to spread the exposure to risk and you are often able to find investors to help you finance the acquisition of bulk REO, limiting your debt exposure, as well.
When considering the answers as to why invest in bulk REO, the ability to make a profit quickly by cosmetically enhancing homes that are offered at half of their normal value is part of the reason. Banks are anxious to get these deteriorating assets off the books and are willing to make concessions to get rid of several of them at once. There are documented cases of bulk REO investors that have made almost a million dollars on a single bulk REO purchase.
When you consider the reasons why invest in bulk REO, you also have to consider the tremendous inventory of bank-owned real estate that exists in the current real estate market. It is estimated that 1 in every 399 housing units went into foreclosure during May of 2010, with more than 2 million foreclosure homes nationwide. This large inventory of bulk REO properties is a big reason the average real estate investor is searching for the answers about why invest in bulk REO.
If you consider the real estate is offered at rock bottom prices that allow for a large profit potential to be realized, it is easier to see why invest in bulk REO and when you consider the time it can take to invest in short sales on the real estate market, the reasons why invest in bulk REO becomes much clearer. For one thing, the bulk REO packages that are offered by the bank are on a list that needs to get shorter quickly, as more inventory continues to accrue. For this reason, the banks want to get rid of as many properties at once and packaging them into bulk REO sales makes the time spent on closing the deal much shorter because they are properties that are already in the REO status. The entire process is much simpler and most of the time the deals are much better.
If you are a beginning real estate investor that is wondering why invest in REO, finding the answers are easy as more real estate investors turn to bulk REO investing. If you are frustrated with trying to find the best real estate deals to invest in, it is a matter of finding an expert in bulk REO that has access to the list of REO options that are available for purchase.
Duncan Wierman is a founding member of Bank REO Property Deals. He has written a complete guide to the BULK REO industry to assist investors to be more proficient and to produce quality product. You can find out more about this concise guide at www.bulkreopropertyinvesting.com
You’ve probably heard about real estate investment opportunities currently available in the US real estate market called “bulk REO”. Before we go any further, let me explain what a REO property and a bulk REO property is for the sake of those readers who are not yet clear about what this term means.
REO (Real Estate Owned) refers to properties which have gone through the foreclosure process and the bank now owns the house. It used to be that these properties would almost always sell at auction, largely to investors eager for a great deal on an investment property. However, the enormous number of foreclosures currently going on in the US means that many of these properties now go unsold and become the property of the bank or other lending institution.
Many people are changing their strategy to investing. Most savvy real estate investors, are changing from working the “pre-foreclosre” angle to buying direct from the bank’s REO departments. They are putting together purchase deals for multiple REO properties in the million to five million dollar range.
Maybe you’ve heard of people who talk about buying bulk REO properties in the hundred million and even billion dollar ranges. I’ve come to learn that in most cases these people are blowing a lot of hot air. Half a million to five million makes sense, but excuse me, a billion dollars? Think about it. A billion dollars is a thousand million-dollar properties, or two-thousand half-million dollar properties. What bank is going to have that many properties available to make a giant REO package like that?
Maybe these new “want-a-be” investors feel like they have to talk big numbers to be taken seriously. I don’t know. I have had people tell me that they a billion dollars instantly available in a bank account from a pool of investors. That tips legitimate sellers off that these people probably don’t know what they’re doing.
Do you have 1,000 million-dollar investors? If so, can I have their phone numbers? Honestly, if you could write a check for a billion dollars would you be spending your day combing through websites of unknown reliability wondering who you should make that check out to?
My point is this: if you’re serious about investing in multiple REO properties, there’s nothing wrong with being honest about how much you have to invest. It is a lot more realistic to find ten investors that are in for 0,000 each, or even 100 investors that are in for ,000 each, and there are enough low-priced foreclosure properties that a million could buy several of them at once in some markets.
I’m not saying that high volume REO deals don’t go down. I’m just saying that the scale is in the million dollar range rather than the billion dollar range. These bulk REO packages usually consist of a dozen or fewer properties, and they’re not the norm. The typical REO bulk packages consist of only two or three properties, and yes, they are done by ordinary investors like you and me.
Getting involved in the bulk REO business is actually a pretty simple process. It takes some legwork, but it’s eminently doable by a determined investor with some initiative.
The first thing you do is get to know the higher ups in local banks. These are the banks where the top brass are mostly local, and that have been banking in your area for awhile. Don’t start with Bank of America, because the chances of your talking to the top REO department officials with only a million bucks in your pocket are pretty slim.
Once you’ve got to know a handful of local bankers, mention that you invest in real estate and would really like to have a sit-down with the REO supervisor. But don’t do this unless you have the cash available to close a deal fast.
Your first REO purchase, and probably your second one too, should be a smaller portfolio of properties. This deal would demonstrate to the bank that you are trustworthy and have the cash to close a purchase quickly. Don’t screw this up, because if you get a deal accepted and something happens and you can’t close it, you can write off that bank for any future REO purchases.
After you’ve closed a couple of REO sales, it’s time to broaden your horizons a little. This is when you can start buying bigger “pools” of property at a time. You have to time it right to get the best deal. You know how people say that to get the best deal on a car you should go toward the end of the month when the sales people are all trying to meet their quotas? It’s similar with banks when a quarter is coming to an end.
At the end of a quarter, banks report their earnings. The top brass are thinking about what kind of bonus they’re going to get at the end of the year. These people do not want under-performing assets (like foreclosure properties) on their books. Knowing the quarterly reporting timeline, come to the bank officer you’re closest to about a month ahead of time and let him or her know that you would be willing to take several under-performing assets off their hands and would like to look at what they have.
From there, it’s time to negotiate. Don’t give them your best offer first. You know how it is, you come at the deal from both ends until you reach a happy middle. If you play your cards right, you’ll come away with several properties that you’ve bought at below market value. The bank crosses a few under-performing assets off their books, and their quarterly reports suddenly look brighter.
The key to doing this and doing it well is realizing that real estate investing is a business, and you should approach it as if you were a business: You, Inc. Like with any other business investment, you want it to increase in value so that you can buy low and sell high. You can’t look at it from the point of view of someone who’s “flipping real estate” (even if at some point you actually end up doing that). You have to come at it with a long-term perspective, and you have to know the market inside and out.
If you approach bulk REO investing as a business you’ll realize that you have a lot to learn, and you’ll take the time to learn it. Getting educated in bulk REO investing will put you miles ahead of the wanna-be’s who talk about billion dollar deals but never close them. As they say in Texas, they’re all hock and no spit. Applying solid business principles to bulk REO investing is the way to be successful at it.
Duncan Wierman is the founding members of “Bank REO Property Deals. His company is connecting sellers of verifiable” product with qualified buyers. If you are interested in learning more about Bulk REO investing, he created a insiders training guide to help you through the maze getting started, all the way through the closing process. http://www.BulkReoPropertyInvesting.com/
Bulk REO Your Personal Real Estate Recession Savior
With current legislation making the real estate market nightmare, the hope and dreams of many real estate entrepreneurs seem almost dashed. Once again, the big guys got the bailouts and the little guys were left out in cold. But there is a way out. There is one sure way to reincarnate the real estate money maker. There is a way for everyone to get their money and keep it too. It is called Bulk REO.
REO, “real estate owned properties” refers to assets a bank or lender owns after foreclosing on a property. Bulk REO is a group of REOs that a bank or lender groups together for sale. The wonderful thing about Bulk REO’s is that they are usually sold for a small fraction of the real value. To recover some money banks often auction them off in a bulk at steeply discounted prices. Needless to say, Bulk REO offers real estate investors an excellent chance to regroup and get back to the horse.
Bulk REO are below MLS, BPO, cheaper than private sellers, auctions and are a fraction of any approved short sale price. And the little known fact is that they are accessible to everyone and anyone-even without cash or credit.
How? Simple! Bulk REO investing is based on the relationships with key Bulk REO market players. You end is to act as broker to the buyer or the seller and charge a fee. Yes, you can represent them at the same time. See what I mean?
Banks do not want bulk REO’s nor do they want their associated costs, taxes, maintenance, insurance and utilities and investors get them at substandard prices. Banks want money not the bills. They have no financial gain by having properties on the books. Real estate invertors want the properties to get money by giving other people bills. And at the fraction of the cost, it is a sweet deal. Everyone wins.
Despite how sweet bulk REO may seem, some caution is advised.
To avoid loopholes, sinkholes and investing too much too soon, Bulk REO investment requires training. Training offers easy, concrete and solid strategies on maximizing investments and avoiding risk. Like in any business, the secret of how to go about it is limited to the lucky few who have either figured it out on their own and those who have actually decided to go trough with the training.
What Bulk REO training teaches you is how to increase the profit from 000 to five to ten times of that per sale. It teaches how to close a deal fast. It teaches you that anyone can do it. It teaches you that do not need to be a middle man. And as the learning curve builds up on acquired skills to provide you with a one way ticket to what is dear and near to all our hearts- money.
Bulk REO is a great opportunity to make money and join the ranks of recession millionaires. The catch is tread carefully, get training, make good picks, go slow and Bulk REO investing can turn a sometimes profit into a great profit.
To find out how you can use Bulk REO.and your very own recession cure. Go to: http://ultimatebulkreo.com and opt in to receive your 39 page Insider Special Report and Get your 4 FREE Videos on “Bulk REO Investing” And Find Out What The Short Sale Gurus Haven’t Been Telling You!
Bulk REO Investing Is A Great Investment In This Real Estate Recession
Bulk REO investing is a saving grace of many real estate inventors desperate to climb out of the recession hole. And with a good reason. Bulk REO is a sure way to bring in millions for pennies. All you need is nerves of steel, good guts, solid strategy and great love for what we all hold dear- money.
Love for money is a given if you take time to read this article. So are the guts if your bank account is on a ready. We will supply the strategy and nerves of steel come with practice so don’t worry about that for now.
After all, bulk REO investing all it is not much different than paying poker. With cards open. Oh yes! In Bulk REO all cards are on the table and your bank account better be on a ready. Rules are simple enough. Keep your cool, don’t expect miracles, don’t bet too high, be good for your money and for god sakes do not try to cheat- you will be caught. Play the right card at the right time and you will clean the table.
What it comes down to is that as far as strategy goes, Bulk REO investing is your game as it has easy to follow rules:
Going is good while demand is high and supply good.
With so many properties going in foreclosure, supply of bulk REO is reaching epic proportions. Banks are itching to clear out their over-flooded books. Demand for money making flips is high perfectly matching the supply. It is clear skies for a gutsy REO investor.
Bulk REO sets realistic goals.
Think millions, not billions and you will better be able to gauge the angle, the investment needed and the weighed risk. There is nothing worse that trying to jump a mile and falling short by a meter. Start smaller, work your way up and you will succeed.
Good reputation reels the money in.
We all have to start somewhere. Same with Bulk REO investing. Do not hesitate to contact the bank with a nice rooster of Bulk REO ready for taking. To pony over Bulk REO, banks want to be sure you are good for it. You need to build trust. Start off with a few smaller investments to build credibility. Once you have it, you are on your way to the big leagues.
Open cards.
Bulk REO is a simple transaction with simple rules. You pay and banks give you Bulk REO. Going in with the major bank guns blazing just to kiss the wall when they ask for few million you know you don’t have – is bad. To avoid having the door slam shut in your face, be honest. Communicate your budget, start with smaller banks and move up. Banks love a reliable investor.
Adaptability.
With bulk REO, you can work on your own schedule and at you unique abilities. The wonderful thing about Bulk REO is that it works with any budget. If few million is out of your reach start smaller. Low risk means anyone can make it in Bulk REO investing as long as they apply solid business practices.
Bulk REO is the investing of the future. As strategy and income builder it is superior to many investment strategies that deal with red tape and small print. By borrowing from established practices of simple supply and demand, Bulk REO is simple the best thing around.
To find out how you can use Bulk REO investing.and your very own recession cure. Go to: http://ultimatebulkreo.com and opt in to receive your 39 page Insider Special Report and Get your 4 FREE Videos on “Bulk REO Investing” And Find Out What The Short Sale Gurus Haven’t Been Telling You!
www.bankreopropertydeals.com Learn how to buy bank reo property, discover a source of verifiable bank bulk reo tapes. Membership required
Buying and selling bulk REO’s is the hottest real estate niche in the country right now. This business is only a few years old. Therefore, not many people know how this business works.
Lucky for you, I have been one of the few investors in the country who has actually closed bulk REO deals and play in this market everyday. I like doing deals with Bulk REO’s just as much as I do when buying and selling single REO homes. However, I like doing bulk REO deals more because the profit potentials are much bigger.
In addition, the bulk REO business is far less competitive than buying single REO homes from REO agents. Most investors don’t understand how to make money with Bulk REO’s, or they think buying bulk REO packages are too risky.
Here’s why…..
When you buy a pool of bulk REO assets from a bank, you are buying “sight unseen”. This is enough to scare away most traditional investors. Don’t worry, you’re about to discover how to take the risk out of buying Bulk REO’s.
Traditionally, most real estate investors are used to going out and physically inspecting properties themselves. I refer to these people as “touch & feel” investors. However, when you buy Bulk REO homes from banks, “touching and feeling” these homes are impossible to do when you’re contracting to buy 30-500 homes or more scattered across the country. Therefore, you have to depend on others to go out in each local market and inspect the properties for you.
I have been active doing Bulk REO deals for 15 months now. Traditionally, I am a “touch and feel” type of investor like many of my peers and it was hard for me to adapt to buying properties “sight unseen” and not inspecting a property before I contracted to buy. For that reason alone, I had no choice but to develop a system that would allow me to buy and sell Bulk REO deals without ever looking at a single property but still feel comfortable along the way.
Why Are Banks Selling Off Bulk REO’S? Due to the U.S. economic meltdown and foreclosure crisis, banks across the country are failing. This has created a unique opportunity to buy properties directly from banks like never before. Today, banks all across America have BILLIONS of dollars in defaulted loans. As I write this report, there are over 1,905,723 foreclosure filings right now. If foreclosure filings continue at this pace we would have exceeded the 3 million foreclosure filings the U.S had in 2008.
When a borrower is in default of their mortgage note, the bank will move to foreclose on their home. The mortgage note is now considered non- performing and becomes a liability on the banks balance sheets. Immediately the bank will hire an attorney to begin the foreclosure process. In addition to attorney’s fees; if the homeowner in default fails to pay the hazardous insurance policy, the property taxes and neglects to maintain the property, the bank will have to step in and pay those expenses as well. Some banks have thousands of these properties and the financial burden is enormous. At this point the bank wants nothing more but to get rid of this money pit!
The timeline to foreclose on a property will depend on if the property is located in a judiciary or non-judiciary State as we discussed in the Foreclosure Frenzy article. In a non-judiciary State, the process to foreclose is much faster and can be done in 2-3 months, while in a judiciary State the process normally takes about 6-12 months.
Once the court has issued a “Notice of Judgment” in a judiciary State or a “Notice of Trustee Sale” in a non-judiciary State, the bank will move to sell the property at the foreclosure auction. The foreclosure auction is normally handled by the local Sheriff’s office. At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney working on behalf of the bank.
If this occurs, and the opening bid is not met, the property is deemed a REO or Real Estate Owned. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender.
Banks have become accustomed to using this process to sell off foreclosure homes to remove them from their books. These homes are considered “toxic-assets”. Today, due to the U.S. foreclosure frenzy, banks are plagued with these toxic-assets while the courts that handle these foreclosure proceedings are backed up making the foreclosure process take longer then ever before.
With Federal Regulators breathing down the throats of banks to do something about all the defaulted loans on their books, banks are now seeking other non-traditional ways to get rid of their toxic assets such as selling their non-performing notes and pools of Bulk REO properties to investors.
This new approach of bundling up Bulk REO properties and selling them at steep discounts saves the banks the headache of continuing to pay for the property taxes, hazardous insurance, utilities, maintenance cost and more importantly, removes the toxic assets from the banks balance sheets enabling them to stay in compliance with Federal and State bank regulations.
What Are Bulk REO’s? Bulk REO’s are foreclosed properties that banks own. Some of the homes may be currently listed with an Agent while others may not. Banks are not in the property management business. They are in the lending business and want these toxic assets off their books. Therefore, this has created a tremendous opportunity for investors who know how to play in this market.
A bulk package is also referred to as a tape. These tapes contain tens or hundreds (sometimes thousands) of REO properties. A tape is nothing more than an excel spreadsheet list of properties.
Can I Do Deals With Bulk REO’s? Yes, in fact you can get started trading Bulk REO deals without any money. Let’s learn exactly how this can be done.
There are several ways to make money buying and selling bulk REO’s. Your options are either:
Brokering Bulk REO Deals
Buying Bulk REO Properties from Banks
Brokering Bulk REO Deals Brokering Bulk REO deals is much easier to do than buying them from banks. A Bulk REO Broker or Trader (some people refer to them also as Syndicators) acts as a middleman between the seller of a Bulk REO tape and a buyer. It is important to note that a professional license is NOT required to broker Bulk REO deals.
The great part about brokering Bulk REO deals is that you don’t have to use “Cash or Credit” to get started.Nor do you need an office, staff or car for that matter and you can do it part-time from the comfort of your home.Brokering Bulk REO deals only requires that you have a telephone, fax machine and a computer.
Computer: Will be used to network with other Bulk REO Brokers, Bankers and Investors online.
Telephone: Will be used to communicate offline with the people you network with online.
Fax Machine: Used to send and receive all the documents and contracts when doing these deals.
How Do I Get Started Brokering Bulk REO’S? The first thing you have to do is understand the role of a Bulk REO Broker so you can find your niche to play. There are two types of Bulk REO Brokers. The first is a Seller’s Rep and the other is a Buyers Rep.
A Buyer’s Rep works exclusively with buyers who are looking to take down tapes. They match their buyers with sellers of Bulk REO tapes and charge a fee for their efforts for finding product for their buyer to purchase.
A Seller’s Rep works exclusively with sellers looking to sell Bulk REO tapes. The seller may be a bank, private equity fund, hedge fund or a private investor. The seller’s rep will get paid a fee for their efforts at finding a buyer to buy the tape from the seller.
Some Brokers work as both buyer and seller reps. The hat they wear will depend on what lead source they have. If they have a source of product for sale, they may become the seller’s rep. If they have a serious buyer of Bulk REO product they may wear the hat of the buyer’s rep.
I have acted as both the buyer and seller rep and made money. However, I prefer to wear the seller’s rep hat because my strength is creating marketing advertisements that sell Bulk REO product. Last month I closed on a small Bulk REO deal and made ,000 working as a seller’s rep. It only took 4 hours of work to get this deal done.
Let me explain how this deal worked:
Step 1 – Find The Product A Bulk REO private seller called me about a small 24 home nationwide tape he had just taken down from a bank. He was asking 0,000 for the tape.
Step 2 – Find A Buyer I passed on taking down the tape myself but decided to call a buyer I knew who was interested in taking down a nationwide tape. My buyer was very interested.
Step 3 – Arrange A Conference Call I arranged for my buyer and seller to talk about the particulars of the deal. The buyer provided verifiable Proof of Funds (POF) to my seller and the tape was sent to him via email.
Step 4 – Due Diligence The buyer conducted his due diligence in 3 days and moved forward to take down the tape.
Step 5 – Master Fee Agreement The seller and I signed the Master Fee Agreement to pay me the difference between the seller’s price of 0,000 to me and my sale price to my buyer for 5,000.
Step 6 – Contract & Closing The buyer executed a contract and made arrangements to close the next day. Once the funds were sent to my seller’s Title Agent, I picked up a check for ,000.
The worst part about brokering Bulk REO deals is finding [REAL] buyers and sellers. Most of my time is spent filtering through the fake buyers and sellers of Bulk REO’s. There are lots of fake buyers and sellers of Bulk REO who care nothing more than to waste your time.
As a Broker you have to learn how to distinguish between the real buyers and sellers of Bulk REO from the fake. There is an art to this and the better you are at it, the fewer headaches you will have, the less time you will waste and ultimately the more money you will make.
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Kenny Rushing is quickly becoming known for the life transforming impact his uncommon wisdom is having on the lives of those who have benefited from his knowledge, wisdom, training and coaching. His goal over the next five years is to teach 1 million people how to achieve financial independence and flip their life through real estate investing. Kenny Rushing is a living testament that: If KEN Can Do It – So KEN You!
www.BankREOpropertydeals.com Find the latest verifiable bulk bank REO property available. Buy Bank REOs Packages Direct From Seller Rep. Our client list is HUGE. New tapes available monthly to members.
The current times present themselves with new challenges for real estate agents and mortgages lenders; potential investors have realized the immense opportunity that resides in the bulk reo property arena and have decided to purchase bulk reos in order to resell them. This potential is for real because new legislation has come along with new requirements. This industry has started to focus and grasp all the mitigation techniques required in order to avoid being enmeshed in lengthy foreclosure processes. By assisting investors in buying the reo properties; the transaction process can be optimized and cycle shortened. Therefore, the entire process can be made easier in order to become available for more investors and eventually homeowners.
After a decade of constant loss mitigation people are beginning to think about imaginative methods in order not to loose their homes; they do everything they can in order to avoid the foreclosure and many creative means have been developed thanks to this aspect. The main responsibility for this disastrous situation is to be found among the mortgage lenders; the easy loans must be left aside in order to prevent people from being financially overwhelmed by the mortgage rates. In a dismal investment environment, investors and hedge funds should avail and purchase bulk reos because they are more profitable; these properties are highly profitable instruments and bulk reo packages present one of the best investment opportunities today. Market fluctuations must be considered in order to establish requisite mortgage rates without making them too overwhelming for end users. Technology is to be used in order to track down all these fluctuations and the bulk reos for sale should be defined according to market demand.
Service providers and reo resellers should use technology in order to speed up the disposition process; by using appropriate expediting methods they can prevent people from loosing their homes. Therefore, in order for a lender to become fully aware of all the possibilities when it comes to the reo sale process, he has to score the entire history of the borrower. He has to make sure that the borrower is financially strong in order to pay his mortgage. Care must be taken this time around in ensuring borrowers are able to afford monthly payments or these properties will fall back into the reo process.
Reo properties are actually the best way when it comes to purchasing real estates at reasonable prices; the bank usually takes possession of all the delinquent properties and every bank is likely to have its own list of available reo properties. If you want to purchase bulk reos, you will have to ask for these lists and many banks already have relationships in place. REO agents have emerged that assist in matching buyers and sellers of REOs. You will have to do your homework and check all the available opportunities in order to make a wise investment. If you are not sure of your knowledge, you can hire an REO consultant to help you in this matter. You also have to be aware that you can actually get the property at a lower price than the one that is demanded by the bank because this institution is not keen on owning the reo properties. Buying such properties may take some time but the entire process is likely to be well paid off in the future to come. Many companies are now packaging these reos for sale to hedge funds and resellers and the entire process is becoming more efficient albeit very competitive.
There are plenty of advantages when it comes to investing in a reo property and every investor is fully aware of the incredible rewards. The main advantage when it comes to the bulk reos for sale is that the agent or the potential buyer will not have to deal with the homeowner anymore. The people who are interested in buying these properties will not have to enter an auction in order to get them; the only thing that they will have to do is to contact the bank or reo seller mandate in charge of a particular property and make a reasonable offer. This offer is to be submitted in order for the bank to acknowledge that a potential buyer is interested in one of its reo properties.
Reports have stated the importance of not rushing into the first reo property for sale; on the contrary, you must be fully aware that not every property is likely to be worth your investment. Not every reo property is an automatic way in order to earn some money and you have to search for all the existing details in order to make sure that a particular property is what you are looking for in order to invest your money.
In order to purchase bulk reos, you will have to search for the necessary details in order to make sure that the bulk reos for sale are profitable enough.
www.bankreopropertydeals.com How to Make Money with BULK Bank REO Properties. The Most Amazing Deals in Real Estate – Bulk REO LOI, POF, LOA, NCND, Master Fee Agreement – Do they really mean anything if either investor or bank aren’t able to perform? How many times have your been frustrated by this? Would you be open to another way? We are sourced DEEP on the supply side so product isn’t the problem. It’s now a matter of how do you proof up the other side so you can complete the deal. There has been a cowboy mentality in bulk REO sales… until now. We’ve found a way to tame the “Wild West.” It’s a fundamental model used in the financial markets each and every trading day. It works whether you are looking for REO portfolios, notes (performing & non-performing) or MTNs. Want to learn more? It begins by filling out the short Buyer Profile form on the website. Do it today so we can introduce you to a better way to pursue bulk REO. DISCLAIMER: Video creator is not a United States Securities Dealer, Broker or US Investment Advisor. Furthermore video creator is a licensed California Realtor but is not acting in that capacity in this role. Information presented herein is not to be considered a solicitation for any purpose, in any form or content, nor an offer to sell and/or buy securities, and/or properties. Video creator is acting in a ‘Intermediary’ capacity only. Video Rating: 4 / 5
Here’s a list of banks that currently have REO. There are some smaller lenders here which are my favorite but also some larger. Take a look and see if you can make a deal!
