How To Be A Bulk REO Investor

No generation in American history has ever experienced the number of foreclosures and defaulted mortgages as is experience now. Yet as always, this challenge has given rise to a huge new chance for alert real estate investors.

That chance is called Bulk REO Investing, and the chance is huge.

The basis of the Bulk REO business is foreclosures, so let’s analyze the foreclosure process now.

Understanding the notion of Bulk REO’s requires understanding of the foreclosure process.

As a home owner misses a payment or two, the lender sends the predictable barage of threatening calligraphy and warnings. The formal process of foreclosure starts at the lender’s discretion. From that time through public auction is called ‘preforeclosure’.

Foreclosure is completed when the property is place up for auction. If the property is not bought at auction, ownership reverts to the first lender. This property is then thorough to be ‘Real Estate Owned’ by the lender, also known as an ‘REO’ property.

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, lenders are increasingly willing to take much less than their REO asset is in fact worth. 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.

The REO investment packages available today have provided a way to profitably make the most of on the U.S. recession. 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 Buscemi of Dandrew Capital Partners, a New-York based hedge fund.