Archive for the ‘Bulk REO’ Category
What is a Wholesale Bulk REO Purchase Program?
Wholesale is the next level REO purchasing for experienced wholesale buyers. It is essentially going from dabbling with smallish REO packages to swimming with the sharks. As one of them. As intimidating as it may seem, wholesale bulk REO is really an easy to follow process. Wholesale Bulk REO takes advantage of a small window of time where REO properties are available for quick purchase in national and state pool runs before they are moved over to traditional liquidation programs. With wholesale bulk REO timing and acting fast is everything. Once the deal is gone, it is gone.
Wholesale bulk REO is available trough proprietary inventory access from the top 50 banks, hedge funds, insurance inventories, and mortgage companies. With minimum order set to $10,000,000 to unlimited, the possibilities are endless. With something as great as wholesale bulk REO there are few requirements, representations, warranties and special instructions that must be followed.
To get a fast train to wholesale bulk REO, there are few requirements:
- 1 Signed Mutual Non-Circumvention/Non-Disclosure Agreement
- 2 Signed Buyer Profile Form
- 3 Signed Custom Purchase Order Form
- 4 Letter of Intent
- 5 Letter of Credibility/Credit
Representations and Warranties for wholesale bulk REO include:
- Portfolio and Order Profile:
- Assets are sold as is
- Acquisitions division will try to match the asset pool with the Buyer’s Profile and Custom Order
- Exceptions are minimal
- Picking/ choosing not available
- Property pools are formed from a single or more asset providers.
- Purchase Contracts
- Variable on case basis
- Asset Representations:
- Fully foreclosed
- No outstanding liens or encumbrances
- Clear title commitment issuance at closing
- Buyer foots other closing costs
Special instructions for wholesale bulk REO include:
- For a Pre-Program, depending on a case:
- Complete Mutual Non-Circumvention/Non-Disclosure Agreement (One time only)
- Complete Buyer Profile Form (One time only)
- Complete Custom Purchase Order Form (For each order)
- Submit Letter of Intent (See sample below: Must be on buyer’s personal or Company Letter Head. It should include info from the profile, purchase order, exit strategy and future order intentions. Must be written in paragraph form)
- Submit Letter of Credibility/Credit – This is NOT Proof of Funds. Letter must be from a bank, mortgage broker, hard money lender, or attorney, stating the buyer can perform on the size of the portfolio the buyer is requesting.
- Have Proof of Funds available to provide directly to the source
For Source:
- Source Contact
- Source will contact the buyer.
- Source works directly with the buyer, after Proof of Fund and verification completed
- Custom order placing
- Property list is given to the buyer
- Due diligence period is three to five days, depending on source
- Properties are to be verified with source
- Closing involves working with Title Company
While wholesale bulk REO does require some effort and qualification, the discounts and profits generated well justify the little work needed. Anyone who’s in real estate investing dreaming of making it big is well advised to take time and effort to explore wholesale bulk REO.
Make $100,000 On Your Next Bulk REO Purchase
All set to purchase Bulk REO? Ready to start making money? How much money can you realistically hope to make? Quite a lot actually. The conditions are so good you are looking at six figures. And making a $100 000 off of bulk REO purchase is as easy as the 1,2 3:
1. Timing.
Now, more than ever, is the right time to purchase Bulk REO! With current economic dip, there is so much Bulk REO to go around that banks are throwing it on the market at 50% of real value. You can realistically expect to make a great investment and flip it for a good profit. Financing is not a problem, the risk is minimal and the money is great.
2. Deals.
There are a lot of great offers out there – and a lot of was to make a great deal! Bulk REO profit depends on what kind of deal you get. In equal parts luck, access and good networking, making a great deal is as easy as being at the right place at the right time. Get access to bulk REO lists. Build good relationships by covering your investments. Mingle. Get your name out there. Network. Ask for professional help. Like in any other business if you want to make a great purchase and sell at a good price you need the right connections. That means going with bank or becoming a Tier 1 buyer. Either way you get to purchase bulk REO:
- Wholesale
- At great discounts
- With maximum sale potential to secondary buyer
Right connections also mean more financing. Leave the stories of million dollar investors to fairytales. Realistic aim is to get few investors in on the deal and make the offer.
3. Commission.
No one works for free and neither should you. Set a good commission! There are three ways to go about it:
- Mandate or Broker
- Cash Buy Approach
- Rent or Sell Approach
Mandate or Broker
The profit on purchased Bulk REO depends on how well you can spread the price. You need to have a clear goal of how much money you expect to get and set your commission accordingly.
What is you commission? One percent? Three percent? More?
What is you commission goal? $10, 000? $50, 000? $100, 000? Yes?
If you purchase Bulk REO for $1 million and sell it at 1 % commission all you get is $10 000, a paltry pickings for the new mover and shaker. At 3% you get a round $30 000 and some regrets. With commission at 10% and $1.1 million sale, voila a nice round $100 000 goes straight to your pocket. Get the picture?
Cash Buy Approach
No banks? No connections? No problem! Work as Tier 1 buyer! Tier 1 is private equity hedge funds, real estate investment trusts, or high net worth investors who can finance bulk REO packages of 100 plus properties
Rent or Sell Approach
After you purchase Bulk REO you have a choice- you can sell it or rent it. Traditional mortgage is a nice way to make money off of purchased Bulk REO.
REO sales offer great opportunities. You can make as much as $100 000 profit when you purchase bulk REO. It all comes down to making the right connections picking a good deal and making a smart sale.
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Bulk REO: The Hot Way To Make Money In This Recession
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 $15 000 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.