Friday, August 27
Finding bulk REO packages is actually pretty easy to do if you know where to look and what to say to the banks.
Finding the Assets.
Finding the assets can be difficult, but don't waste your time trying to deal with banks that don't want to talk to you. Instead, go with smaller, regional or local banks, or even credit unions, that will. These are sometimes called "portfolio lenders," and if you find the person that's the one to go to at particular bank or credit union, that's great. Next, you need to figure out what to say. What do you say? You don't want to sound like you're inexperienced, and you want to be able to spot shysters who act like they have direct access but really don't. Bulk REO Secrets has all this information for you, to give you instant credibility and the means to get to the "go to" guys at the smaller banks and credit unions.
Three Forms Needed.
You'll need to fill out three forms to do bulk REO deals. You need a nondisclosure agreement, a letter of intent, and a proof of funds letter.
Take Care of Financing.
Funding can be the most difficult part of real estate investing, but not to worry. Depending on what your exit strategy is, you'll need to have financing lined up unless you're simply acting as a broker, in which case you won't. If you're going to flip properties out of the package, you'll need to close with "transactional funding. I know someone who finances packages, with no credit score required, and a source for transactional funding with no upfront fees necessary, so that you can line up $1 million quite easily, no questions asked, or more than that if you make a phone call.
You can flip REO bulk deals in a package or individually, and this is a great way to syndicate what you do. As large scale wholesaling, it takes some finesse, and I can show you how to do that. What do you need to do? Build your buyer's list first and then start marketing before you get the tape.
"Bulk REO Brokering"
"Bulk brokering" is a favorite strategy, and you don't need a license or experience to do so. However, it can get you some amazing cash, fast. One of the best ways to market the package is to hedge funds, which you can find online. With this, you can get both cash and property. And that's all there is to it.