Bulk REO Investors – The Easy Way
With more foreclosures now than ever before, America’s weak real estate market seems to set new dismal minutes each month. But smart real estate investors are rotary these ‘lemons’ into ‘lemonade’ in an incredibly profitable new way.
The new opportunity is known as ‘Bulk REO Investing’ or ‘REO Package Investing’ and it’s a huge opportunity.
Consider with me, if you will, the fundamentals of the Bulk REO business.
Understanding of the foreclosure process is central to understanding Bulk REO investing.
As a borrower becomes increasingly behind in his mortgage, the lender regularly calls and writes the borrower with non-payment warnings and threats. The official foreclosure proceedings start subsequently, as aimed at by the lender. ‘Pre foreclosure’ is the name given to the time linking implementation of the foreclosure proceedings and the public auction.
When a defaulted material goods is placed up for auction, the foreclosure process is concluded. Ownership of the material goods is returned to the lender if the material goods is not sold at auction. The material goods then receives the designation of being an ‘REO’ or the more formal name, ‘Real Estate Owned’.
Lenders ordinarily try to unload their REO properties at close to retail price by listing their REO’s with a real estate broker. Though, lenders are increasingly willing to take much less than their REO asset is really worth. But the price of receiving such fantastic pricing is the need to buy manifold REO properties (a ‘package’) rather than party properties.
The REO investment packages available today have provided a way to gainfully capitalize on the U.S. depression. REO packages are simplest to buy and sell with a well regarded source of financing in place. There are many sources of funding for these transasactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and confidential investors. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Salvatore Bushemi of Dandrew Partners, a hedge fund in New York.