The weakness of the U.S. economy has given rise to the largest epidemic of foreclosures in American history. But challenge always gives rise to opportunity, and opportunistic real estate investors are rising to the challenge.
‘Bulk REO Investing’ is the name of the new strategy, and it’s captured the attention of many well-heeled investors.
Let’s take a moment to analyze the basics of this incredibly lucrative business.
To understand Bulk REO investing is to understand the foreclosure process.
Mortgage lenders faced with a non-paying home owner send a large volume of threats, warnings and documentation to the borrower who is late. The lender directs the subsequent timing of the actual foreclosure proceedings. ‘Pre foreclosure’ is the name given to the time between implementation of the foreclosure proceedings and the public auction.
To complete the foreclosure process, the property is auction to the public. If there are no buyers at the foreclosure auction, the lender regains title to the property. The designation of ‘REO’ (Real Estate Owned) is then attached to the foreclosed property.
Lenders usually try to unload their REO properties at close to retail price by listing their REO’s with a real estate broker. But more and more, lenders are selling their REO properties for a greatly reduced price. The trade-off is that the buyer must purchase multiple REO properties in each transaction.
These REO packages represent the potential to acquire huge amounts of equity for savvy real estate investors. The most successful Bulk REO Investors will have a well-respected source of funding for their transactions. Some sources of funding for these transactions are: personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds. One excellent source of funding for Bulk REO Investment transactions can be found here: Bulk REO Investment Training.
Related posts:
- Fundamentals Of Bulk REO Investing
- Bulk REO Investment Tips
- Bulk REO Investment 101
- Simple Steps To Bulk REO Investment Success
- Basics of Being A Bulk REO Investor
- Bulk REO Investor Profit Strategies 101
- Bulk REO Basics
- Bulk REO Investor Profit Strategies 101
- How To Be A Bulk REO Investor
- How To Be A Bulk REO Investor
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August 21st, 2009 at 9:02 am
I would like to invite you to our National Hard Money Conference on hard money lending, Mortgage Brokers success, REO’s, mortgage pools and much more. Held in Las Vegas at the Rio Hotel, September 3rd.
Investors, Brokers, Private Lenders and Real Estate Developers from around the country will be attending this once in a lifetime event.
It’s billed as the largest hard money conference in the country.
September 3rd, Rio Hotel – Las Vegas