Real Estate Investor · Detroit, MI · Member since 2008 · 7 posts · 0 votes
Recently I have been receiving a lot of deals for REOs in my market passed on by Investors involved in "Daisy Chains", as some folks call them. I am wondering has anyone out there ever successfully dealt with an Investor that was part of one of these chains? If so, what is the most effective way, in your opinion, of dealing with these guys/gals?
This forum is for discussion of individual REO's only. "Daisy Chains" usually implies a package of multiple properties, aka "bulk REO". Please limit bulk REO discussion to the bulk REO forum, only, and follow the rules for posting in that area. Have a read over there, and you'll get an education on the reality, or lack thereof, of these "daisy chains."
If you mean something else, please explain. REOs I buy (and try to buy) are listed with agents and on the MLS. No daisy chains.
This forum is for discussion of individual REO's only. "Daisy Chains" usually implies a package of multiple properties, aka "bulk REO". Please limit bulk REO discussion to the bulk REO forum, only, and follow the rules for posting in that area. Have a read over there, and you'll get an education on the reality, or lack thereof, of these "daisy chains."
If you mean something else, please explain. REOs I buy (and try to buy) are listed with agents and on the MLS. No daisy chains.
Daisy Chains are the number of people involved in the transaction. Most investors want to limit the amount of people in the transactions. For instance, I have a seller direct to an institutional trade desk, that would mean there are 3 people on the intermidaries invovled just on the seller side.
I don't understand how a Daisy Chain differs from the REO then...
Is it just affected by the number of people involved in the food chain?
Alex.
Bulk REO's are loans investors are trying to purchase. Daisy Chains are the people involved. Most REO buyer and/or seller want to limit the amount of people to get to the buyer or seller.
Bulk REO's are loans investors are trying to purchase. ...
No they are not,
An REO is a loan that went to a non performance type status and then was offered for sale and did not fetch a required or minimal amount. An REO is Bank Owned asset and is no longer a type of paper product,
Non performing, scratch and dent and performing loans are sellable but are quite different from an REO type of sale
Loans have a much greater due diligence effort as each hard copy of a loan is detailed with section 32, TILA, Note Riders etc...