BiggerPockets

I Dare You To Prove Me Wrong REO's are like Chasing Fools Gold

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Wow, I can't believe the amount of hours I have put into this business in exchanage for the profit I have earned which is not one red cent. I have been through the gambit, I truly feel that I have been through everything that has already been posted here by other investors and then some. I have had more promises made to me by sellers that were close to compliers or bank mandates and so on. then that of politician who promise to change our country. I am a real estate investor and I let my business go down to the grown chasing fools gold and some of the friends I have met on this journey are from all walks of life and all kind of people including some lawyers. So I don't feels as bad that I was chasing, what makes me feel bad is that knowone has come up with a better system then what is out there right now.
An NCND mean nothing if people will not honor it. And Bank compliers or mandates that have packages must be held accountable for telling someone that the package is in there hand and after a client has signed all forms and proofed up turn around and tell the client that the package was sold to someone else. So the way to look at this for now is, I can't give it anymore time. I will have to go back to work soon and do my real estate investing on a part basis which really sucks. I will become a fulltime investor real soon but it will be the way of the true investor one home at a time.

I am looking for a real source for REO and notes with a proven system Like I have found for gold and diamonds. So if you are a real source send me a note with all of your business info I will be investgating your business.

That's really too bad Ernest,

Of all the tapes you claimed to hold (Trillions) you now are saying you haven't closed a deal (one red cent)

How can that be?

What about that software program you were touting as the " New Wave" no BS revolution for us in REO?

http://forums.biggerpockets.com/viewtopic.php?p=62202&highlight=#62202

It all sounded so hopeful and promising

As a bit of advice to you and everyone.....

QUIT CHASING THE PHANTOM TAPES!!!

Real product isn't waiting in an escrow acct,

It's already bought right off the floor. Fallout occurs but it sits with attorneys. How many tapes can anyone say they've actually closed by finding the product from some schmuck on a website?

It isn't happening

YOU'RE BEING LIED TO!

If you aren't working with people you know.....you're spinning your wheels!

Happy New Year!

I'm not into marketing but I can tell you that the buyers are tired of dealing with " brokers" that have 3 months seasoning on the secondary market. Did you all think the Street was going to open their arms and say welcome....here's your 7 figure commission? I don't want to slam anyone because I've met some VERY QUALITY people on the net during this insanity

Real buyers are easy to work with. They are HAPPY to show their worth to garner product at 50-60% of the values. NOBODY is buying at 33+4

Banks stopped the push because of the same BS everyone already knows about....THE FLOW is not happening

We have received two offerings sice the New Year and will see a trickle until a " floor" is reached. Nobody wants to over or under pay " yet"

Banks are wanting 50's-60's and can't get that with Billion dollar ports. You'll start to see 25M, 50M and max 500M trades. That's a good thing for us as we'll see more blocks to broker... :lol: Buyers are being misled and that's sad...intermediaries wanting 500K for a phone call can :badwords: :badwords: and then get a REALITY check as to what their VALUE IS to the deal

50% is NOT what we offer for a buyer....EVER!

NCND's with 14 names on it? What the hell are #'s 2-14 doing on it anyway?

Orders that come to me may be filled next Tuesday or February....I don't control a damned thing. I ask and if it's available you'll see it 5 minutes after I VERIFY IT and know I have an EXCLUSIVE for a " period of time" . That may be 2 hours it may be 48 hours. No games NO BS! If you know a better solution stay with it. I don't talk to " brokers" to see if we can help. You have a buyer that's who we talk to, Period, end of story! On existing product....first time buyers will NOT have access to that list. Execute a trade and we'll have a reason to share fallout tapes from other banks

You don't like that way....stay where you're at,

If I sound like a jerk....GOOD

I'm tired of repeating this

It's fool's gold. See who's closing deals. Count them, and you will see that # will be on one hand.

Ask yourself if you can get their connections and by the time you are ready to be in business the REO market will be over in bulk packages.

Just be careful because to make it succeed it requires more than what you think.

Give Ernie a break?

Should we just patronize people now? Ernie has had a business model that was flawed from the start. It isn't hard to " recognize" the lunacy of the offerings that were being circulated....Ernie sent me over a TRILLION dollars in REO's for sale. That's IMPOSSIBLE to hold number one and another thing is the model of information gathering that " brokers" think will be undertaken. No buyer is going to hand off legitimate financial ability to some internet cowboy. It's NOT GOING TO HAPPEN

You may get a request from a legit buyer but their attorney will wear the financials very close to his/her vest.

Yesterday, again, for the 350,000th time I had a broker ask for POF's and an LOI? When will the insanity actually sink in that we will NEVER send a broker documentation. It's simple. If you know a seller....find a buyer. If you have 2 infront of you....WALK AWAY!!!

This whole game is a match makers delight. There is REAL PRODUCT and I promise you there's always been buyers looking for RE at 40% discounts. Always will be too

REO and NPN's are always going to be around

If you haven't closed a deal yet.....you'll probably not ever close one doing what you're doing now

All you need to do is find ONE credible buyer or seller.....that's the trick

If you do then you'll have a period with which you need to perform. You will be lucky to get two checks. After principals meet....you're out. Get over it,

Almost all of the traders I deal with were from introductions....people just don't know who they know or what that conduit is actually worth. Look close to home before circling with the buzzards on the internet....

Mercury....if you stick around long enough,

You'll understand

Ernie

What do you mean this business came to you? Wasn't it you and Sam and David and Bruce that were offering product all over the place? The product wasn't real....so what exactly came to you?

You mentioned you have yet to make a " red cent" ....so what came to you?

The opportunity?

OK,

It's still the same in the end.....we all have opportunity. If you choose to walk with turkeys instead of soaring with eagles that's OK by me

Just don't complain about the choices " YOU MAKE"

You and Mercury like the name calling thing.......why?

Who cares if someone is a jerk or a snob....will it eventually get you where you're headed? It may be those jerks and snobs you need to get past the initial hurdles you face

Don't ever discredit anyone where the " circle is very small"

I work with colossal :badwords: :badwords: types of individuals. I have to sit across from them at meetings and smile (it's business). It's what it is. I don't like a lot of the people I do business with but I'll GUARANTEE you one thing. They'll NEVER hear me say anything of the sort

EVER!

Nobody really wishes anyone here or in business ill will....but if you keep doing the same things over and over and you're expecting different results? There's going to be a tolerance issue at some point.

Best of luck on your endeavours

I completely understand. I am here to learn and help others with any advice I may have. I just don't like seeing others ridiculed because of their lack of knowledge, especially when they are really wanting help or ideas to progress their business. I really like what your doing here Josh. You have the most robust site I've seen, though I feel some of " the experts" aren't really acting like experts. I understand where the responses were coming from, I just feel like it could have been handled in a different manner.

WE NEED MORE PEOPLE LIKE
William and Tim on this Forum!

Ernie,
I'm no expert on package REOs, but your issue appears to be one of philosophy/psychology more than the technical aspects of bulk REO investing. I'm going to offer my opinion from another realm of REI but a situation similar to yours. Again, this is merely an opinion. This is where you hit the nail on the head: " I will become a fulltime investor real soon but it will be the way of the true investor one home at a time." The first thing you build in a house is a foundation. An investment portfolio is no different.

I deal in two spectrums of real estate. I buy my cheap, little, completely un-sexy rental houses (which incidentally have all been individual REOs) and tenant them. Second, I work with an international financing firm sourcing funds for developers who need anywhere from 20 to 500 million US dollars of financing with commission potential for myself of up to 1 point on the loan.

99% of my business right now is dedicated to the cheap, little, completely un-sexy rental houses because of one thing. I need to finish my foundation of cash flow (which for me is 10k a month). That foundation of cash flow will give me the capacity to be calm and calculated as I start to give more time to chasing the huge pie in the sky commissions. It will also give me the freedom to travel, put in the face time and create the relationships necessary for things like this to happen.

You still have an unfinished foundation and you're trying to install a terra cotta roof. The terra cotta roof exists but the fact is you're just not qualified for it yet. Sorry but that's the way capitalism works. There's stuff I would love to do but am not qualified as yet. Stop messing with anything other than building finding some cheap, little, completely un-sexy way to set up your cashflow. Get it done and then see what big dollar opportunities are available to you at that point. It may be something entirely different and you may find you don't WANT to deal with bulk REOs.

Tim