Why Invest In Bulk REO?

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

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Filed under: Bank REO Portfolios

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