Bulk REO investing basics. Post 143

Coach Mitch’s REFLECTIONS™

 

Banks Are Motivated Sellers???

Banks are not usually thought of as “motivated sellers.” However, when today’s banks have such large portfolios of foreclosed properties, it is understandable that they are “motivated” to get these properties off their books.

A while back, I got a property from a bulk foreclosure sale. You can see it. It is the third picture down in the right outside sidebar; the burnout.

I have dealt with bank foreclosure officers, usually with little success. Now however, there has never been a better time to deal with banks. If you have the capital, or can get it, then seeking to make a bulk purchase can be a great ticket to a big score.

BTW, almost all foreclosure properties are tax delinquent.

Bulk REO investing take LOT’s of money.

The least expensive portfolio l have ever seen needed $100K in cash. It was for a small piece of the entire portfolio; but the $100K could get you 30 houses – in Detroit, almost certainly in the ghetto.

FYI

This is an article by a known guru. It gives basic info about Bulk REO’s. I thought it worthwhile to pass on without editing. I am not affiliated with the guru.

Be careful,

Bulk REO Investing Basics

 

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Many people are checking out bulk REO investments as a way of building some financial security in these troubling times. For the average reader, however, you may not even be aware of what bulk REO investments means, especially because REO is an acronym that has erupted into contemporary popular usage only recently. If you are one of those people who want a way to navigate the confusing terminologies behind bulk REO investing, here are the basic terminologies that you need to be acquainted with.

Bulk REOs

Bulk REOs is an acronym that stands for ‘real estate owned’ and is a term that is often used in the banking as well as the lending world. The process of bulk REOs is summed up in the event where a home that is placed on mortgage is placed on a foreclosure because of the homeowner’s inability to pay the mortgage or other dues that have been made with the real estate used as the collateral. Bulk has been often added to the REO acronym because investment in this field is most profitable when buying REOs in bulk, since these forms of real estate are much cheaper than others and are thus best when bought in bulk, the way wholesale buying is much more efficient than choosing to purchase goods from retailers. Some institutions will not allow individual REO buying.

POF

The acronym stands for ‘proof of funds’ and is one of the basic requirements before you as an investor can begin your transactions to have a bulk REO package made. If you have ever bought a house, and you probably have since you are now looking at real estate as an investment option, you have probably realized that to purchase a single house alone requires the participation and help of many entities. Among those that may have been involved in the purchase of your home is the homeowner who intends to sell, you who intend to buy, a bank that may provide some of the funds that you need in order to purchase the house, a lawyer to settle the paperwork, and even an objective home inspector to act as a third party. The same goes with bulk REO investments. Because it entails much work, most banks will need a POF before proceeding.

Vetting

Otherwise known as the critical examination or assessment part of the bulk REO buying process, it is necessary in order for the bank to assess not only the POF of the person who intends to buy the real estate, but also the actual willingness of the person to proceed with the transaction. After all, not everyone who has sufficient POF necessarily has the intent, and may simply be surveying his investment potentials.

LOI

Also known as the ‘letter of intent,’ this is the letter which the bank will entertain once you have undergone the vetting of the POF. The LOI will indicate what your exact bulk REO investment request entails, such as what type of property you are looking for, the price range that you desire, as well as the location that you will entertain.

NCND

The acronym stands for ‘non-circumvent, non-disclosure agreement’ and is a document signed by all the parties involved to secure the transaction. Here, the basic premise is that all parties involved in the transaction will not interfere with the proceedings of the REO investment and that information regarded as confidential will not be disclosed.

There are over 50 terms you need to know to be successful in this business when you deal with a bank. I provide you with everything you need to get in the door and talk like a professional. I included scripts , and responses.

Check out http://www.bulkreopropertyinvesting.com

Sincerely

Duncan Wierman