Bulk REO Investment Tips

No generation in American history has ever experienced the number of foreclosures and defaulted mortgages as is experience now. But smart real estate investors are rotary these ‘lemons’ into ‘lemonade’ in an incredibly profitable new way.

The new chance is known as ‘Bulk REO Investing’ or ‘REO Package Investing’ and it’s a huge chance.

Consider with me, if you will, the fundamentals of the Bulk REO business.

You can’t be with you Bulk REO Funds without understanding the process of foreclosure.

When a home owner starts to miss payments on their mortgage, the lender starts to send late/overdue notices to the home owner. The official foreclosure proceedings start subsequently, as aimed at by the lender. The ‘pre-foreclosure’ time starts with filing of foreclosure paperwork and concludes at public auction.

Foreclosure is completed when the defaulted property is auctioned. If the property is not bought at auction, ownership reverts to the first lender. Such a property is then classified as an ‘REO’ (Real Estate Owned) by the lender.

Typically, lenders list their REO properties with local real estate agents in hopes of selling the property to a retail buyer who will pay full price. But more and more, lenders are selling their REO properties for a momentously cut-rate price. Lenders are willing to do so in chat for the buyer’s agreement to buy a ‘package’ of REO’s rather than a single property.

These REO packages speak for the potential to buy huge amounts of equity for savvy real estate investors. REO packages are simplest to buy and sell with a well regarded source of financing in place. Some sources of funding for these transactions are: private funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds. Additionally, one man is becoming very well known in the field of bulk REO investing, and his name is Sal Bushemi of Dandrew Partners, a New-York based hedge fund.