Bulk REO Or Goose Chase?

If you have chased the elusive Bulk REO as I have than you are probably wondering how to get your hands on a real buyer, a real seller and a real tape. You probably also ran across your fair share of , NCNDs, MFAs, intermediaries, mandates, broker chains, "buyers", "sellers" and a fair share of tapes. One thing I have learned is to do a lot of due diligence and not to get too excited like I did at the beginning of my bulk REO journey. I am embarrased to say how much time has been "invested" in this endeavor and not yet have a successful transaction. However, am happy to say I have established new relationships, learned the real meaning of due diligence and have become somewhat of an REO expert. Guess it's a part of earning your stripes. The funny thing about life is that when you chase something too hard you end up driving it away. I no longer chase the elusive bulk REO deal but will wait patiently for it to fall on my lap.Please share any suggestions, comments, experiences or your own goose chases

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Comments

  • Thank you all for your comments! Here is a comment from a member of another group where I posted the same discussion:

    In the current state of the market, all too many out of work mortgage brokers, real estate agents and former employees of recently imploded financial institutions have found a new home in the ethereal world of bulk asset trades. The reality is most people attempting to participate in this industry do not have the resume or experience that would warrant a position of any merit to actually be involved in such a transaction.

    What you find is a selection of people who truly do not understand the nuances of what it actually takes to successfully transact such a trade, but consistently misrepresent themselves as experienced. Most have never witnessed the tremendous amount of legal work, title issues, compliance issues, due diligence and complex contracts that accompany a bulk trade.

    So let’s set the record straight:
    (1) Regardless of what you may hear, asset trades are not happening a 25-35 cents on the dollar.
    (2) 95% of the people you will come into contact with in this business, although well meaning are not capable or qualified of successfully trading assets
    (3) Have common sense and do your homework on people. Are they licensed? Where do they do business? Are they registered with Secretary of State? D&B?
    (4) If you are true purchaser of assets, expect to spend a great deal of time and a great deal of money to successfully purchase assets in bulk
    (5) If anyone says they have a billion dollar buyer or seller….laugh politely and hang up the phone.

    Jeremy B. Hill
    JB Capital Management
    trade.so 域名合作 | 中国商标注册388元 | China Trademark Registration USD 69
  • Unlike most who have enter the bulk arena, I came into it knowing that pool transaction happen from my experience as a contract due diligence underwriter for some 20+ years. I was involve a hundreds of pool purchase in the $100’M range, so I do know that do happen. I retired in 1998 and in 2008 came out of retirement hoping to utilize my learned skills in bulk reo’s. Not only did I underwrite pools, but had been a real estate investor since 1968 and yet I have had problem with so called sellers. I am currently working on establishing a small investment group I hopes of taking down some small California pools. Wish me will.
    Please feel free to contact me a socalif@email.com. Don
  • I agree. It takes patience. I have people wanting to buy direct from banks for the low price points, too, but spent a lot of time looking for the right contacts, tapes, etc., but it seems that the few times this has happened has been from the sellers contacting me directly. Maybe I have not established the correct contacts?
  • I like your ending sentence Carlos. Sometimes we try to hard to get somewhere and then you give up maybe right before it would materialize. Your affirmation that you are waiting patiently implies you haven't given up. So good luck. How do you learn more about this. I am in MIami and there are so many people that say they want to buy bulk.
  • Sounds all too familiar. A lot of promises and work!!
  • i love this. what is the old saying, been there done that !!!

    thanks !!
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