How To Buy & Sell 1,000 Properties At A Time

46 Replies

This morning an opportunity fell on my lap (well...to be exact, the opportunity was emailed to me). It's an opportunity to buy and sell over 1,000 REOs that are NOT on the MLS. This opportunity came from a credible source - I've bought and sold a LOT of properties with this SOURCE so I know this bulk REO list is legitimate. My source is direct with the decision maker at the bank. And the nice thing about this list is that I can CHERRY PICK it - meaning I don't have to buy all the properties. I can choose the properties I want and buy only those properties.

Here's the screenshot of one side of the spreadsheet as proof:

I like to check with the BP community for any suggestions, ideas or inputs on how I can do this. Here are some ideas: (please vote which idea is best or if you have another idea, let me know)

1. Work with wholesalers in those states and have them help me sell these properties one at a time. My worry about this is that these wholesalers could market the list all over the internet and once the bank gets wind of this, the deal is dead.

2. Work with BULK REO buyers. The downside is: I won't get as much spread per property but since we're talking about over 1,000 properties, I can put $1,000 upcharge on each property and I could rake in a cool $1 MILLION. Another downside though: I don't have any bulk REO buyer lined up specially for a list this BIG.

3. Contact REHABBERS and LANDLORDS and sell the properties one property at a time. If I do this, selling the properties will take a lot of time and could take too long before my property source pulls the list away.

4. Raise the money needed to take down the list and then I can do #s 1, 2, 3 above and even rehab-n-flip or rehab-n-rent the best properties on the list. I don't have enough capital to take down or buy the entire list so I will have to take the time to raise the capital to do so. Another downside is that the bank has not decided on what price to ask for some properties in the list.

5. FOCUS only on areas I have the resources and team and buy the properties there. This limits me to Lee & Collier counties in Florida and properties in the Chicago area. The downside: I miss out making money on 900+ properties!

I've already implemented idea #5. I will do that anyway. BUT, which of the above ideas make sense if you were in my shoes? Or are there other smarter ways to do this?

Account Closed 

  been there done that... Cherry pick if you can.. I got very frustrated trying to buy large tapes.  One time I had 5 mil in escrow for 3 months on an indy mac tape that never closed.

have had success as I said cherry picking ...

Account Closed 

  plus with a tape that large you will get a lot of frogs  !!!

What is the average cost per property?    If it's over 60k I'd be able to put something together.   I typically like to give people a piece of the net when they do something this big.     I'm highly skeptical about this lead though and if it came from anyone less credible on this forum I wouldn't even bother to respond.

ONLY CONTACT ME if you have actual addresses with actual prices.   

You could bless a newbie with some Illinois (Chicago) listings to jump start her wholesale business. #ijs #blessing #hadtoask 

Hey Shante.....

If you really are a newbie. I would suggest working on a buyers list for the areas closest to you. Best way to do this is get on the MLS....find all the cash buyers in the last 90 days within 5 miles of 10 or 15 of the properties on the list. Contact them by phone, or email, postcard, or however. Find out what they bought recently, and at what LTV. Find a deal similar deal on your list, and pitch it..

To be honest...No matter how many deals you come up with...They are worthless to a real wholesaler if you don't know what people are buying and for how much...Build your buyers list....IT WILL ALWAYS SERVE YOU WELL.

A famous person once said......

If you can have any advantage for a business you are starting, whether it be a large budget, great staff, a good accountant, the best service...or whatever....what would you want???

The answer is a crowd of people looking for your product or service..

Holla...and Good luck. 

I think @Jay Hinrichs   made a pretty valid point. If I was given the opportunity to go through that many deals I would also cherry pick the best deals, work with my network to get rid of them, and keep moving. I think since there are so many properties, and I'm pretty sure they may not all be good deals, I think it would be much easier to get in and out making a nice profit by taking that approach. Just my opinion though....

as a newbie I would stay away from the  comment above the last one 

Learn wholetailing not wholesaling and learn where the buyers hang out. 

You certainly don't need a buyers list. 

And you certainly can buy houses for massive gains without money to buy a house.  

Originally posted by @Leigh C:

What is the average cost per property?    If it's over 60k I'd be able to put something together.   I typically like to give people a piece of the net when they do something this big.     I'm highly skeptical about this lead though and if it came from anyone less credible on this forum I wouldn't even bother to respond.

ONLY CONTACT ME if you have actual addresses with actual prices.   

 Leigh, I will send you a PM with the actual addresses and prices for some of the properties (those priced above $60K) NOT for the entire list. 

Account Closed Perhaps you could work with wholesalers on a more selective basis, have them sign a non-disclosure agreement even. I don't know what you have for Texas, but there are tons of buyers here desperate for deals. Some of the less scrupulous wholesalers in town are pushing deals at or above 85% of ARV with another $60k of rehab needed...and they are selling those deals. It's crazy.

Let me know if you have any properties in North Carolina.  I have a lot of cash buyers on my list for Raleigh, Durham & Charlotte...........Roland

Originally posted by @Hattie Dizmond:

@Wendell De Guzman Perhaps you could work with wholesalers on a more selective basis, have them sign a non-disclosure agreement even. I don't know what you have for Texas, but there are tons of buyers here desperate for deals. Some of the less scrupulous wholesalers in town are pushing deals at or above 85% of ARV with another $60k of rehab needed...and they are selling those deals. It's crazy.

 Do you know any good wholesalers in Texas?

Wendell- you can contact me as I work most of the state of Texas

Account Closed 

Well, I believe I'm a good one.  :-)  I wasn't marketing myself in my suggestion, just that there is a dearth of deals in the DFW area.  Feel free to PM me, if you would like.

I can help move, in reasonable quantity, the ones in DFW. Are the prices fixed at the BPO, UPB, or other ... or negotiable?

Account Closed 

Parker is local to DFW.

Thanks, but I'll have to pass.  There were recent threads asking about McAllen, and there's a ton of people on BP from Houston.

Originally posted by @Hattie Dizmond:

@Wendell De Guzman 

Parker is local to DFW.

 I'm emailing you what I have in Parker county.

Account Closed if you have anything in Las Vegas please let me know. I can look at the addresses and tell you what prices would work for us. 

Account Closed let me know if you have anything in Las Vegas. I know the market well and can make quick cash offers.

Account Closed 

  as you can see by the response's trying to take down this tape by cobbling investors together is a pretty tough road.... Everyone wants that great deal in their market.. In that size of tape your going to have many rural type properties ... Like I said been there done that.  This game is for the Big money boys that can buy the tape in cash.. then parcel out the properties. not try to raise a bunch of different investors to all come in and buy the tape.. they move to fast for that.

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