BiggerPockets

I am new to this site and new to this whole REO tape business.
As I read this forum, I need to ask the question:
When it comes to REO tapes; Is it true? or false? Is it possible to get REO tapes? It makes me wonder....I had someone send me a few tapes and I have buyers that have shown proof of funds and filled out the necessary paperwork- we are in the very beginning of putting these deals together.....
How do you know when you have a "real source" or is there such thing?
If someone would be so kind to share with me the "red flags" to watch out for, this way I will be aware of how I spend my time.
If it is true.....
How many days should it take to get a tape?
Should the buyer be speaking directly with the banks?
How long is a tape good for?
What would be the proper way to market a tape that was given to me?
What is the normal commission for bringing the two parties together?

- if it is false......
Why is it a subject on BiggerPockets??? Why not just post "REO Packages are not real" and let's move on the real deals.

I am really curious if these tapes I have are just trash....How do I find out?

DVS

So, here's my take as an observer who's watched this business for a couple of years but isn't really involved.

Do "bulk REO" deals happen? Yes.

Are they done directly from someone who's a part of a seller (e.g., a bank or hedge fund employee) to someone who's actually a buyer? Yes.

Is there sometimes an intermediary involved? Someone who speaks for a seller to a number of potential buyers, or who speaks for a buyer to a number of sellers? Maybe. I'd say there is some evidence this actually happens.

Are they ever brokered by someone who gets a tape from a "seller's mandate" and offers it on internet forums to find some "buyer's mandate"? No.

Red flags? Billions. LOI. Proof of funds. NCND. Mandate. +3.

A real source is someone who works at a bank or some other entity who would reasonably have a batch of property. A real buyer is someone who has cash in the bank they could spend in a matter of days.

If you have a real buyer, start calling banks.

Just my take as an interested, but uninvolved observer.

After 6 months your question(s) will have been answered...

A simplistic question is this:

If you had been selling assets for years (secondary market) are you now going to just take a face value of some unknown and jeopardize your livliehood...??? Of course not!

Bamks are NOT selling REO at the idiotic levels you see on these pages!

Banks do NOT add 3 points so brokers can take (earn) a fee

Don't even get me started!

abracadabra

I appreciate all the insightful information. I have investors interested in buying these tapes. Do any of you know of any contact information for the asset managers in these banks? any information would be useful. thank you so much!

When calling a bank how do you get passed the asset manager to real person you want to talk to

Been there. I used that exact same terminology.
The people I get connected to, I have not asked their position, but when (if) they take my info I keep hearing (weather spoken or not) that they must confer with someone else higher up. This is the Asset Manager type of feel I'm getting.

The other road block they seem to use a lot is something like:
A) We don't have any REO's
B) We only get one every now and then and we deal with those on a local level
C) We don't sell our Loans

A & B I can believe even from a lot of banks. However I called a couple that are know to be in trouble and get the same type of response.
We all know they have product and they need to sell it.
Why the lack of cooperation when I am presenting myself as a credible source?

Christopher, I hear you are "The Man"
What is your advice on the best way to find out who is a fake?
What criteria / evaluation process do you use when reviewing a tape?

Chris even if these folks are lucky enough to complete one phase of this and locate Real product they can bring to the table, That's only half the battle.

Since listing product on BP or other internet locations is not the best way to try and get your product sold.

What kind of advise can you offer for locating investors who are interested in making bulk purchases. It's not like their listed in the yellow pages. LOL or on the internet. These guys keep a low profile to the general public. And of course you don't want to go through 'Another' broker to get there. Any thoughts