| the 1st of three articles | | | | then I may be headed in the right direction. What I need |
| This is a Three part Blog about buying REO's in Bulk | | | | to have a successful transaction is one buyer who will |
| and individual homes. We'll cover these topics: The | | | | write a check and one seller who has the deeds. If I |
| realities of Buying Bulk REO's, and Buying Bulk REO | | | | have to deal with Tom who knows John, who then |
| property or bank owned homes. And The reason its | | | | must speak with his boss Melissa who heard about |
| not as easy to buy bulk reo as it may sound. | | | | Timothy..... I hate to break it to people but half the times |
| In this blog we'll discuss the difficulties of buying bulk | | | | when you say you've got a tape, you've got a tape |
| foreclosure property from banks. | | | | that fell out of escrow at the bank, was sent out to a |
| First encounters with the REO: My first encounter with | | | | few securities reps, who then passed them on to a |
| bulk REO's was when a client asked our firm about | | | | few real estate professionals, or developers...it |
| buying bulk REO's. At the time I was a Financial | | | | snowballs from there. Last week I spoke with a |
| Adviser and knew very little about what he was | | | | "sellers rep" who sent me a bulk reo list...and it seemed |
| looking for. I asked around with some of my old Real | | | | out of place. I pulled up my old tapes, which by the |
| Estate contacts and stumbled into a bunch of people | | | | way I keep on file for smoking out the daisy chain |
| who could help me find "a tape". Well, I'm glad I've | | | | groups, and this particular tape I received 3 weeks |
| started that process because its turned out to be quite | | | | earlier from someone else at a substantially higher |
| a fun and rewarding adventure but along the way | | | | price! Basically the original "source" who sent the tapes |
| there were huge hurdles I needed to get through and | | | | marked a $700,000 reo tape to over $932,000. |
| so much crap to put up with to get real answers... | | | | Really? $230,000 profit for forwarding a list to |
| Too many chiefs: One of the biggest issues most bulk | | | | someone? Riduculous! The seller and I had a good |
| buyers run into is the daisy-chain or broker-chain. This | | | | laugh. |
| is a tangled network of individuals who say they know | | | | The best way to reduce broker chains is to require |
| the seller who is direct with the broker, mandate or rep. | | | | the buyer put money in a national Title Company. |
| There have been times when I ask, "Are you the seller | | | | Done! If the buyer is real, then the bank moves |
| on this package"? I usually hear, "No, but my partner | | | | forward. Do you think Countrywide or Chase need to |
| knows the guy who is linked-in with the corporation | | | | prove to you that they have the property for sale? |
| who is in charge of the sellers attorney". What?? You'll | | | | Not a chance. Often times this, "We need to verify |
| gain more respect from me by saying you're with the | | | | product" is merely a ploy to release a tape so that |
| mob, and Vinnie was the guy with the thing at the | | | | person can market it to the world... bad news all the |
| place when the deed was done...fugettabout it... | | | | way around. In the next blog, we'll discuss how things |
| Honesty: This is the first thing that lets me know if I'm | | | | really work at the banking industry when you want to |
| on the trail of a real seller of REO's or some clown | | | | buy in bulk. Keep an eye out for part II and II of Buying |
| who doesn't know what they're doing. If I ask if | | | | Bulk REO's and bank owned property. |
| someone if they're the seller or buyer and they say no, | | | | |