Basics in Bulk REO Investing
Bulk REO Investing Training Video
The Rise Of The Bulk REO Investing Strategy
No generation in American history has ever experienced the number of foreclosures and defaulted mortgages as is happening now. However, opportunistic real estate investment professionals are turning the recession into great profits with a bit of creativity.
That opportunity is called Bulk REO Investing, and the potential is huge. Take a just a minute to consider the basics of this highly profitable business.
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 formal process of foreclosure begins at the lender’s discretion. From that time through public auction is called ‘preforeclosure’.
The defaulted property is ultimately auctioned, thus completing the foreclosure process. The lender regains ownership of the property if there are no buyers at auction. This property is then considered to be ‘Real Estate Owned’ by the lender, also known as an ‘REO’ property.
REO properties are usually listed for sale with local real estate agents. However, lenders are increasingly willing to take much less than their REO asset is actually worth. However, the purchase of a ‘package’ (or group) or REO properties is the trade-off for receiving such great prices.
Qualified real estate investors are increasingly finding once-in-a-lifetime opportunities in these REO packages. 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.
Note – One of the nation’s leading experts on bulk reo investing is hedge fund manager Sal Buscemi. Salvatore Buscemi recognized the irrationality of the real estate boom of the late 1990′s and early 2000′s and capitalized on this by forming his very well-regarded hedge fund, Dandrew Capital Partners.