| The hottest real estate investing strategy this year is | | | | selling a property individually. This has to do with bank |
| dealing in "Bulk REO." Using the Bulk REO strategy is | | | | financial reporting methods. Remember banks are in |
| an incredibly profitable way for savvy investors to | | | | the business of lending money and not selling real |
| take advantage of banks troubles in this economy. | | | | estate. |
| Bulk REO investing methods are paying out bigger | | | | Many BULK REO packages are currently available to |
| profits faster than often hype "short sale" investing | | | | astute investors who then resell these houses at full |
| methods. | | | | price over a period of time. The type of bulk REO |
| To be able to truly comprehend what the opportunity | | | | buyers taking advantage of the current situation and |
| for investing in Bulk REO is,you need to understand the | | | | making huge profits range from wholesale investor to |
| processes of foreclosure. When a homeowners | | | | large real estate hedge funds. |
| misses a few payments, the borrower get many | | | | Buying properties which have been foreclosed gives |
| notices,warnings and even threats from the bank. This | | | | investors an incredible return on their investment. It |
| is the start of a long grueling path toward foreclosure. | | | | really is a "no brainer" when you buy property far |
| This can take anywhere from three, to six or even | | | | below market value and can then resell it still under |
| many more months. | | | | market value and make a profit. Some investors |
| The property will then be up for auction, completing the | | | | renovate the houses if they need renovation, or re-sell |
| process of foreclosure. In the event that the property | | | | them as is. |
| fails to be sold at the auction, the property is then | | | | It is also very easy to get these types of properties |
| returned to the lender. The designation of 'REO' is then | | | | from a bank if you know how. The banks really do |
| placed upon the property which is a short version of | | | | hate owning these types of property and there |
| "Real Estate Owned." Usually, REO property is listed in | | | | always one person who is in charge of getting rid of |
| real estate agents' property listings with the hopes of | | | | bad assets. Finding this person is the key to success. |
| selling the property at the market prices. This process | | | | When you do find that decision maker, it is very |
| can take up to another 6 months. The bank has not | | | | important to know what to say, how to trigger their hot |
| only been losing money hand over fist and they are | | | | buttons, and how to present yourself with credibility so |
| unable to lend money they have in reserves to cover | | | | you can stack all the cards in your favor. Like any |
| more loses. | | | | other business, learn the ropes, so you can be |
| Banks want to get rid of bad assets. The banks would | | | | successful and dominate your real estate market with |
| prefer to sell assets at a discount in bulk rather then | | | | good deals. |