How to choose Bulk REO's and Bulk Foreclosures Through the Bank

It is a Three part Blog about buying REO's in large quantities and individual homes. We'll cover these topics: The realities of purchasing Bulk REO's, and getting Bulk REO property or bank owned homes. Along with the reason its not as easy to buy bulk reo as it may sound.

In this blog we'll discuss the difficulties of buying bulk foreclosure property from banks.

First encounters with the REO: My first encounter with bulk REO's was every time a client asked our firm about buying bulk REO's. Back then I used to be a monetary Adviser and knew hardly any with what he was looking for. Industry experts around by incorporating of my old Property contacts and stumbled into a couple of people that can help you me find "a tape". Well, I'm glad I've started that process because its ended up being quite a fun and rewarding adventure but in the process there are huge hurdles I wanted to obtain through therefore much crap to put with to get real answers...

Way too many chiefs: One of the biggest issues most bulk buyers encounter is the daisy-chain or broker-chain. It is a tangled network of an individual who say they understand the owner who's direct with all the broker, mandate or rep. There were when I ask, "Are you the seller on this package"? It's my job to hear, "No, but my lady knows the man who is linked-in together with the corporation who's accountable for the sellers attorney". What?? You'll gain in respect from me by saying you're using the mob, and Vinnie was he together with the thing at the place if the deed ended...fugettabout it...

Honesty: This can be the the very first thing lets me know if I'm on the trail of your real seller of REO's or some clown who doesn't know very well what they actually do. If I ask if someone when they are owner or buyer and so they refuse, i then may be headed within the right direction. What I need a successful transaction is certainly one buyer that will write a check mark and something seller who may have the deeds. Basically have to endure Tom you never know John, who then must talk to his boss Melissa who learned about Timothy..... I dislike to interrupt it to individuals but half the changing times if you say you've got a tape, you have a tape that fell away from escrow on the bank, was delivered to a couple securities reps, who then passed them to a few real estate professionals, or developers...it snowballs from there. Yesterday I spoken with a "sellers rep" who sent me a bulk reo list...and it seemed unnatural. I pulled up my old tapes, which incidentally I carry on declare smoking out the daisy chain groups, which particular tape I received 25 days earlier from somebody else at the substantially higher price! This is the original "source" who sent the tapes marked a $700,000 reo tape close to $932,000. Really? $230,000 profit for forwarding a list to a person? Riduculous! The vendor and that i were built with a good laugh.

The ultimate way to reduce broker chains is to need the buyer put take advantage a national Title Company. Done! If your buyer is real, then your bank moves on. You think Countrywide or Chase must prove to you that they have the property available? No. Often times this, "We need to verify product" is only a ploy to produce a tape to ensure person can offer it around the world... not so good news all around. In the next blog, we'll go through how things really work with the banking industry if you want to get in large quantities. Keep an eye out for part II and II of Buying Bulk how to get reo listings and bank owned property.