Bulk REO Investing In This Current Market
Bulk REO Investing is becoming one of the most lucrative avenues of investment during 2009 and in the future. Bulk REO Investors profit by purchasing multiple (commonly called portfolios) of houses from lenders who have repossessed the houses and have urgent need to eliminate pressure from their balance sheets. Due to the dire emergency of the balance sheet needs of the financial institutions coupled with the investors capability to buy a package of REO houses rather than individual properties, its frequently possible for a well-capitalized bulk reo investor to get REO packages at definitely appealing prices.
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.
When the REO portfolio transactions are finalized, investors have multiple houses which may then be sold to bring a return to their fund. To do this, the investors resell their houses to retail home buyers via seller financing. By eliminating traditional lenders out of the transactions, they are able to move their houses quickly and at very attractive options.
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 deals, determine what you want to get them for, and put in your second (or third) best offer (never offer 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 smart Bulk REO investors. - 23196
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.
When the REO portfolio transactions are finalized, investors have multiple houses which may then be sold to bring a return to their fund. To do this, the investors resell their houses to retail home buyers via seller financing. By eliminating traditional lenders out of the transactions, they are able to move their houses quickly and at very attractive options.
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 deals, determine what you want to get them for, and put in your second (or third) best offer (never offer 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 smart Bulk REO investors. - 23196
posted by X - Men @ 6:53 AM
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