Real Estate Investing In Today's Market
Bulk REO Investing is proving to be one of the most lucrative fields of investment during 2009 and beyond. Bulk REO Investors profit by purchasing groups (commonly called portfolios) of properties from lenders who have repossessed the properties and have urgent need to release pressure from their balance sheets. Due to the urgency of the balance sheet needs of the financial institutions coupled with the investors ability to buy a package of REO properties rather than individual properties, its frequently possible for a well-capitalized bulk reo investor to acquire REO packages at extremely attractive prices.
Many real estate investors make offers to banking institutions on the basis of a portion of unpaid principal balances. This means that if they make an offer of 80 cents on the dollar for a group of mortgages with a remainder of $3,000,000 in principal balance, then they pay $2,400,000 to get that group.
At the conclusion of our reo portfolio transactions, we own multiple properties which must then be monetized to bring a return to our fund. To do this, we resell our properties to retail home buyers via seller financing. By cutting traditional lenders out of our transactions, we are able to sell our properties quickly and at very attractive terms.
Try to learn when the banks financial quarter ends. This is when they report their quarterly earnings and financials and when most of supervisory management get evaluated for increases in pay. Just like any business, financial institutions dont want to show these underperforming properties on their books especially when their earnings reports are due.
Analyze the deals, determine what you want to get them for, and put in your second (or third) best offer (never offer your best offer first).
Negotiate until its a win-win, and you walk away with several houses at well below market value, and the lending institution walks away with those houses off of their records just in time for their quarterly earnings reports to their shareholders.
The future seems bright for savvy Bulk REO investors. - 23200
Many real estate investors make offers to banking institutions on the basis of a portion of unpaid principal balances. This means that if they make an offer of 80 cents on the dollar for a group of mortgages with a remainder of $3,000,000 in principal balance, then they pay $2,400,000 to get that group.
At the conclusion of our reo portfolio transactions, we own multiple properties which must then be monetized to bring a return to our fund. To do this, we resell our properties to retail home buyers via seller financing. By cutting traditional lenders out of our transactions, we are able to sell our properties quickly and at very attractive terms.
Try to learn when the banks financial quarter ends. This is when they report their quarterly earnings and financials and when most of supervisory management get evaluated for increases in pay. Just like any business, financial institutions dont want to show these underperforming properties on their books especially when their earnings reports are due.
Analyze the deals, determine what you want to get them for, and put in your second (or third) best offer (never offer your best offer first).
Negotiate until its a win-win, and you walk away with several houses at well below market value, and the lending institution walks away with those houses off of their records just in time for their quarterly earnings reports to their shareholders.
The future seems bright for savvy Bulk REO investors. - 23200
posted by X - Men @ 5:03 AM
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