Bulk REO Investment Profit Strategies
The weakness of the U.S. economy has given rise to the largest epidemic of foreclosures in American description. Yet well-funded investors in real estate are seizing upon this opening to profit from an profoundly profitable new chance.
The real estate investing strategy du jour is called ‘Bulk REO Investing‘ and is a real monster.
Take a just a minute to deliberate the basics of this highly profitable business.
To know Bulk REO investing is to know the foreclosure process.
A home owner who misses one or more mortgage payments is faced with an ever-increasing volume of threatening correspondence from their lender. Subsequent a period of time single-minded by the lender, formal foreclosure proceedings start. ‘Pre foreclosure’ is the name given to the time linking implementation of the foreclosure proceedings and the public public sale.
When a defaulted property is placed up for public sale, the foreclosure process is concluded. If there are no buyers for the property at public sale, the property is returned to the lender. The property then receives the mark of being an ‘REO’ or the more formal name, ‘Real Estate Owned’.
Lenders usually try to unload their REO properties at close to retail price by listing their REO’s with a real estate broker. Yet with increasing frequency, REO properties are being sold for pennies or dimes on the dollar. Though, the buy of a ‘package’ (or group) or REO properties is the trade-off for receiving such fantastic prices.
There is huge profit the makings in these REO packages for qualified real estate investors. The most thriving Bulk REO Investors will have a well-respected source of funding for their transactions. There are many sources of funding for these transasactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and private investors. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Sal Bushemi of Dandrew Capital Partners, a hedge fund in New York.