Whats the Deal with Bulk REO Investing?
By Duncan Wierman on Aug 27, 2010 in Bulk REO Investing
If you are wondering why you should invest in bulk REO, chances are you probably have heard a brand new round of marketing hype that speaks about the tremendous profit opportunity that exists by purchasing packages of bank “real estate owned” foreclosures and default homes in bulk. With the current real estate market, there are some reason why invest in bulk REO could be a good idea. Before you leap into it, lets try and make sense of the bulk REO market.
Obviously, there are many investors that have taken advantage of the opportunity of single foreclosure houses and short sale properties. The great thing about bulk REO is that you are purchasing a package of foreclosed properties, which allows you to bypass all the hassles of dealing with homeowners , spread the exposure to risk and you are often able to find investors to help you finance the acquisition of bulk REO, limiting your debt exposure, as well.
When considering the answers as to why invest in bulk REO, you decision should be based upon your ability to either broker these deals or profiting by quickly cosmetically enhancing these houses. Bulk REOs are usually offered at half of their normal value is part of the reason to get involved with this strategy. Banks are anxious to get these deteriorating assets off the books and are willing to make concessions to get rid of several of them at once. There are documented cases of bulk REO investors that have made almost a 200,000 dollars on a single bulk REO purchase.
When you consider the reasons why invest in bulk REO, you also have to consider the tremendous inventory of bank-owned real estate that exists in the current real estate market. It is estimated that 1 in every 399 housing units went into foreclosure during May of 2010, with more than 2 million foreclosure homes nationwide. This large inventory of bulk REO properties is a big reason the average real estate investor is searching for the answers about why invest in bulk REO.
If you consider the real estate is offered at rock bottom prices that allow for a large profit potential to be realized, it is easier to see why invest in bulk REO and when you consider the time it can take to invest in short sales on the real estate market, the reasons why invest in bulk REO becomes much clearer. For one thing, the bulk REO packages that are offered by the bank are on a list that needs to get shorter quickly, as more inventory continues to accrue. For this reason, the banks want to get rid of as many properties at once and packaging them into bulk REO sales makes the time spent on closing the deal much shorter because they are properties that are already in the REO status. The entire process is much simpler and most of the time the deals are much better.
If you are a beginning real estate investor that is wondering why invest in REO, finding the answers are easy as more real estate investors turn to bulk REO investing. If you are frustrated with trying to find the best real estate deals to invest in, it is a matter of finding an expert in bulk REO that has access to the list of REO options that are available for purchase.
Check out my course at www.bulkreopropertyinvesting.com for only $97 dollars to start with. No need to pay for expensive courses in this easy to learn business. I will even partner with you on deals!
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