BULK REO Investments

The United States is seeing more and more foreclosures than it has ever experienced before. Investors in real estate are picking up on this new venture to profit from an extremely profitable new opportunity.

‘Bulk REO Investing’ is the name of the new strategy, and it’s captured the attention of many real estate investors out there.

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

As a borrower becomes increasingly behind in his/her mortgage, the lender regularly calls and writes the borrower with default warnings and threats. The lender directs the imminent timing of the actual foreclosure proceedings. The ‘pre-foreclosure’ time starts with filing of foreclosure paperwork and concludes at public auction.

The defaulted property is ultimately auctioned, which completes the foreclosure process. If the property is not purchased at auction, ownership goes back to the original lender. The designation of ‘REO’ (Real Estate Owned) is then attached to the foreclosed property.

Local real estate agents are usually used to resale REO properties at retail price to the general public. However, REO properties are now frequently sold for far less than their book value. Lenders are willing to do this in exchange for the buyer’s agreement to purchase a ‘package’ of REO’s rather than a single property.

One of the best ways to take advantage of Bulk REO Investing opportunities is with a regarded source of funding. Some sources of funding for these transactions are: personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds.

Are you an investor looking to purchase BULK REO? Contact us for more information!