Bulk REO Investing, The Good The Bad and The Ugly

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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.