Are you interested in buying REO homes in bulk? Read the article below to find out all about bulk buying REOs. It gives some great information on just what all is involved when buying bulk REOs.
Imagine the first home you bought. Can you name the people involved in that purchase? Remember all the paperwork, appraisals, inspections, title work, and loan crap you had to deal with? How about the number people that were involved? Let me refresh your memory: Bank officer, Mortgage broker, title officer, escrow officer and or assistant, the termite inspection guy, the lawyer if there were legal issues, the appraiser, the appraisers secretary because you couldn’t reach him for your apointment…I digress…
There are bunch of people involved just to close a single home. Buying bulk reo’s is far more complex. Why do people think it will be a quick transaction when buying 10+ homes, or 100 homes on a bulk tape…a little dose of reality would be nice! Lets review buying Bulk reo’s and selling reo’s and intermediaries.
Buyers: buyers of bulk reo tapes tend to be real estate investors or developers. Rarely will just anyone want to shell out a a Million dollars blindly on a package of homes scattered across the entire United States. They’d prefer to buy in areas that they know and can do their due diligence on. The other type of buyer is one where they’re going to purchase in bulk and gamble that there will be another fool in line to buy it once they add some crazy fee. daisy chains and Broker Sellers: I usually pull title on a few random homes to verify. Most of the time the homes fell out of escrow but one of the parties got a hold of the list and is not distributing it (illegally) to everyone on the net.
Buying direct from the bank: How many people have actually bought a single reo? Was it an easy process? Did you have a few hoops to jump through? Imagine how complex buying hundreds of these homes. Each has its own neighborhood, comps, square footage? Some may be sent out to an auction house, some may be listed on the MLS and some may still be in the banks pockets and haven’t been released to the public yet.
Buying a bulk reo tape: It’s not just a matter of having the bank send you a list. When the bank compiles a list of homes there are several things that must happen first. Job numero uno is to verify that you are going to buy the homes when the bank gets a list together. To do this you must first prove you have the money. No loans, No credit cards, no overnight transactional funding companies can be involved.
Cash, or cash equivalent and someone will verify! If you don’t pass this first step, you won’t get through. The banks were nearly destroyed by ultra-leveraged borrowing schemes in 2003-2007. They don’t want a repeat. Buying in cash tells the bank that you have the ability to hold on to that property and you won’t go into foreclosure. Once you prove you have the cash, the bank has to be able to legally offer you bulk reo product. Be sure to read Part 3 coming soon.
About the Author
by Jason Gray
Jason gray is a real estate entrepreneuer who specializes in bulk property sales.To be added to our early access notification listvisit http://sillypricessweetdeals.com/splashca.html
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