Basic Bulk REO Investing 101

The current economy in the US has generated morebusiness if you want to get involved in it.
foreclosed property than any other time in history.However, It is not impossible for beginners to break
Real Estate Investors however, are known forinto. After all, everyone needs start somewhere. You
turning lemons into lemonade. Investors are findingwill find many people who claim they have lists of
huge profits in dealing with these distressed assetsproperty when if fact they do not. This is because
direct from the banks. This new opportunity is calledthey sometimes get the notion that by saying they
Bulk REO investments.have a 'list' will get them in touch with big time
Bulk REOs investing is when a bank will put togetherinvestors. In essence, the 'list' is their only bait to
a package of distressed or foreclosured assetsattract investors.This will back fire on you very
together in a "package" and sell them off in BULK.quickly and get you blacklisted in the industry.
This allows them to get these distressed assets offA legitimate deal, however, is a win-win situation. An
their books quicker and clean their books. The bankinvestor who has concrete relationship with the selling
will take a bigger discount to sell the package so thebank with a true bulk REO list, equals a very good
can get back to their main business of lending. Sellingand profitable deal in front of them.
their "asset pool" in this manner, actually work outMiddlemen who act between these the buyer and
better for both the bank and the investor. There is aselling parties may just make a very sizable income.
huge opportunity for making unlimited profit if youHundred of thousands of dollars can become his
know how!commission just by being at the right place at the
Understanding what this business entails will give youright time, and knowing the right information.
a new opportunity to create wealth for the savvyRemember that if you are a newbie, if you are just
real estate investor. Knowing the ins and outs oftrying to break into the "game", you might be getting
REO investing may make this your biggest year yet.involved in a "daisy chain".
Banks are the institutions which can provide you withDaisy chains are a chain of people claiming they have
a list of properties in bulk which has a very low resaledirect access to a 'list' of property for sale as long as
value. This means that you will be able to purchaseyou have the finances available. However, it turns out
ten different buildings or structures for the price ofthey don't have the list at all.
two or there. This is an investor's dream. The onlyIn other words, they want a 'cut' of the bulk REO
problem is that it takes a few skills to actually besale and are hoping to put you together with the
able to get near enough the right people in charge inpeople up the ladder. The only trouble is, there are a
order to be involved in a deal like this. This is becauseline of people that are lining up around the list, and it
bankers and financers as well as the head honchos inis unlikely a deal can be made this way.
the business of bulk REO are surrounded by big timeMy advice is to stay away from daisy chains, get
investors. Bulk REO's give investors the opportunityyourself some education on how this business works,
for vast acquisitions at low cost. For this reason, thisand find your own tapes. Buyer will be lining up at
is not a you must know the in and outs of theyour door for real deals.