BiggerPockets

I was going to respond to your last post Lee but you posted this one first...so here I am.

The problem is that the principals in these transactions want nothing to do with the agents. Not that I blame them. In a normal RE transaction, the buyer has his offer written by his agent, is given advice on how to write the offer, and then the offer is sent to the seller's agent.

The seller's agent presents it to his client, offers his opinion (unless the seller is a bank or other financial institution, in which case the agents opinion is already given by a BPO), and a decision is made as to ignore, counter, or accept the offer.

All through this process, there is an understanding that the seller will pay a commission of 4-8% to the agents, and the agents will split that commission however it is agreed in the MLS.

The problem with applying this logic to bulk is that the principal's in bulk don't give a rat's a$$ about the agents, and certainly don't need their advice. So this expectation of a commission that a "broker" is used to is not at all a valid expectation.

Moreover, the complexity of a bulk transaction is so far over the head of most brokers (some struggle with even individual REO) that they don't add any value anyway, in fact they probably slow down or (worse) screw up the process.

It seems like you've done a great job of separating yourself (certainly better than I) from the sea of "average" brokers by securing an instiutional seller willing to let you sell their goods. It looks like all you need now is a legitmate buyer.

I certainly understand your frustration, but would think that if you applied the same amount of dedication and tenacity to finding a buyer as you did to finding a seller, you will be the one who gets to tell all the rest of us how to properly execute one of these deals.

Not that anyone will listen... that +3 pipe dream just sounds too damn good.

Lee,

You know who we are and you know what happens in the real world (now)

It's a very tough time to get deals done...

Good luck bro!

The biggest issue I see.

Everyone is focused on closing number 1. How can I get paid. Until you understand closing number 2 ( when the buyer gets paid) you will never get a shot at closing number 1.

Ps. Risk is not a board game.

The key to doing business is to be doing business. Of recent I have seen NPL's that were supposed to be a lot loan, that had a house on it.... :) The fund I am with did a few marginal deals just to have the track record of having done some deals.

Pss. Too many Playah's not many players..

Last night I heard the first Banker/Pundit admit "we simply cannot use the asset-removal plan due to the serious losses we'd have to post on our books". He claimed the "toxic" assets are performing in the 90% range, so a removal would destroy the balance sheets AND the P&L.

He's right, whether the performance ratio is correct or not. I can't wait for the pressure to mount to get with the Timmyplan - Mr. Banker will now do ANYTHING to raise cash to stay out of that net.

Until you understand a banker and how a bank works, you will never close a deal. Nor should you be allowed to.


Lenders will do whatever it takes to put somebody else in the expense side of any "business deal" they offer. They don't just fail to "leave something on the table", they steal the table on the way out the door. Many RE types have gone quickly or slowly broke trying to market the banks' stolen property, but it is my belief that outcome is the current example of "Just Desserts" or "Poetic Justice" on all sides of each transaction.


I did some $$ consulting work last March on 3 packages. I did the metrics for the buyer. We bid under 20 UPB based upon what I came up with. Last month I broke out that spreadsheet. 11 UPB is where it should have been bought. If all were sold today. I assume 1/3 of that would still be tied up with the clerk of the court.

I got an email from someone from this board. They sent me 2 complexes in Lee County. If you gave me these complexes, I would Quit Claim them to someone I do not like. All the good stuff was said. BPO 130K ( more like 40k). This person had no idea what she is doing, other the goal of trying to find a "lemming" to prey upon for her big payday.

Pss. You should not hate "looters" for what they are, just avoid them. Once in while you get to stick a rat down one of their shirts... ( the real fun)

Most covet wealth over competence. without competence you get neither. If you happen to be lucky and get wealthy, while still being stupid. I suggest writing a course about the experience and going on the speaking circuit. There are plenty of examples as to that happening.

Thanks Nick,

I appreciate it!

I'm definitely looking forward to taking a look at your new pools.

I should have a response back for you first thing next week on the properties I received from you today.

All the Best, Lee

Ali,

Let's set some time aside to get to know each other.

It would be my pleasure to work with you.

I think Chris, Nick & Jeff will agree 100M transaction are not where the bread and butter is.

All the Best, Lee