Bulk REO Investing In This Current Market
Bulk REO Investing is proving to be one of the most profitable fields of investment during this year and potentially beyond. Bulk REO Investors profit by buying groups (commonly called portfolios) of properties from lenders who have foreclosed the properties and have urgent desire to reduce pressure on their balance sheets. Due to the urgency of the balance sheet needs of the banking institutions coupled with the investors ability to purchase a package of REO properties rather than singular properties, its quite possible for a well-financed bulk reo investor to acquire REO packages at extremely attractive deals.
Many real estate investors make offers to banking institutions on the basis of a portion of unpaid principal balances. This means that if they make an offer of 80 cents on the dollar for a group of mortgages with a remainder of $3,000,000 in principal balance, then they pay $2,400,000 to get that group.
At the conclusion of our reo portfolio transactions, we own multiple properties which must then be monetized to bring a return to our fund. To do this, we resell our properties to retail home buyers via seller financing. By cutting traditional lenders out of our transactions, we are able to sell our properties quickly and at very attractive terms.
Make an attempt to find out when the banks financial quarter ends. This is where they record their quarterly earnings and financials and when most of upper management get reviewed for bonuses. Just like any company, banks dont want to have these underperforming assets on their records, especially when their earnings records are due.
Analyze the properties, determine what you need to get them for, and put in your second (or third) best offer (never give your best offer first).
Negotiate until its a win-win. .. and you walk away with several properties at below market value the bank walks away with those properties off of their books just in time for their quarterly earnings reports to shareholders.
The future seems bright for savvy Bulk REO investors. - 23305
Many real estate investors make offers to banking institutions on the basis of a portion of unpaid principal balances. This means that if they make an offer of 80 cents on the dollar for a group of mortgages with a remainder of $3,000,000 in principal balance, then they pay $2,400,000 to get that group.
At the conclusion of our reo portfolio transactions, we own multiple properties which must then be monetized to bring a return to our fund. To do this, we resell our properties to retail home buyers via seller financing. By cutting traditional lenders out of our transactions, we are able to sell our properties quickly and at very attractive terms.
Make an attempt to find out when the banks financial quarter ends. This is where they record their quarterly earnings and financials and when most of upper management get reviewed for bonuses. Just like any company, banks dont want to have these underperforming assets on their records, especially when their earnings records are due.
Analyze the properties, determine what you need to get them for, and put in your second (or third) best offer (never give your best offer first).
Negotiate until its a win-win. .. and you walk away with several properties at below market value the bank walks away with those properties off of their books just in time for their quarterly earnings reports to shareholders.
The future seems bright for savvy Bulk REO investors. - 23305
posted by Mr. Forex at
6:52 AM
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