| There are many real estate investors who are flipping | | | | where a bulk reo investor comes in, sells the house |
| bulk reo tapes for fast profits. However you will also | | | | next door for less with payments cheaper than rent? |
| find that there many savvy real estate investors who | | | | This is one of the reasons why these investors can |
| are buying bulk portfolios to hold. These real estate | | | | sell houses faster than normal. |
| investors have found that by so they can make | | | | The only drawback to this type of investing strategy |
| MASSIVE profits by using the same method some car | | | | to a new investor is that they have to buy at least five |
| dealers use. They use a "Buy Here - Pay Here" | | | | properties at a time to take advantage of getting |
| approach. | | | | these types of discounts from the banks. The investor |
| Providing owner financing to a market segment who | | | | however really should not be nervous, because |
| cannot get a traditional loan is proving to be a market | | | | anytime you can get a house at 25% - 45% of Loan |
| with massive potential profits. To understand how | | | | To Value, there is not much risk at all. Average |
| these investors are profiting, you must first understand | | | | properties found in these small bulk portfolio pools |
| the concept of a "Land Contract". | | | | range from 21,000 to 25,000 dollars. How does that |
| A land contract is a contract between the buyer and | | | | work out for the investor. |
| a private seller of a property, where the seller will hold | | | | Lets take a look at some sample deals which are only |
| the title or the deed to the property until the property | | | | representations: |
| has been paid in full. " Using the Land Contract, the | | | | 2112/2114 Delachaise, New Orleans LA: Sold in 73 days |
| investor will sell the property "AS IS" to the new buyer. | | | | Sold for $29,354.00, 16 year mortgage @ 9.9% |
| Many times the investor will sell if for only 10-20 | | | | Monthly mortgage payments are at $300.00 |
| percent above what they paid for it. The reason for | | | | 107 Paisley Drive, Williamston SC, Sold in 123 days Sold |
| this, is because the price appears very attractive to | | | | for $56,206, 20 year mortgage @ 11% Monthly |
| the the buyer because they are getting a house way | | | | mortgage payments are at $575.00 |
| under market value. | | | | 310 E. Trail St., Jackson MI, Sold in 67 days Sold for |
| The investor in turn however will offer a slightly higher | | | | $41,796, 13 year mortgage @ 9% Monthly mortgage |
| than market interest rate to the buyer, as the | | | | payments are at $450.00 |
| transaction is one that provides a NO BANK | | | | 1079 Arlington Ave., SW, Atlanta GA, Sold in 74 days |
| FINANCING opportunity. Since owner financing is | | | | Sold for $40,227, 10 year mortgage @ 10% Monthly |
| available, there is a much wider pool of potential | | | | mortgage payments are at $525.00 |
| buyers. Remember that the payments to the new | | | | The questions to ask yourself is this investment |
| buyers are still cheaper than paying rent. This means | | | | strategy for you? Does it make sense to buy |
| investors can sell their properties extremely fast. | | | | investment properties in small quantities for pennies on |
| Can you imagine if you were were a "traditional" buy | | | | the dollar, while enjoying the same bulk discounts that |
| and hold investor trying to rent out one of your | | | | major players receive when they buy 8 Figure |
| investment houses in the same neighborhood as | | | | BulkREO packages from large banks? |