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Have You Ridden The REO Express?

Have You Ridden The REO Express? by Bill Roberts

This morning on Good Morning America there was a story about a bus tour of foreclosed houses. I think it was in Pismo Beach, California, but it could have been anywhere. Apparently they charge $20 a head and they take a busload (what's that? About 50 people) around to look at REOs.

They give them the asking price and either the previous selling price or the previous loan amount. It wasn't clear. Maybe they just give them what they have and it varies. In any event these have got to be motivated buyers since they are paying $20 each or $40 a couple just to look.

After the segment they interviewed Mellody Hobson, President, Ariel Capital Management. She gave some good advice including a disclaimer that the houses would be purchased "As Is."

I would like to know if anybody has any experience with one of these "tours" and would like to share their experience or knowledge.

I liked the idea. I could see myself organizing a tour like that. Your input is really wanted.

Click on the link and watch the segment.

Thank you,

Bill Roberts 619-244-4610

billroberts5843@hotmail.com

Posted by Bill Roberts - "Baby Boomer" Retirement Planning on 01/25/2008 01:49 PM

Comments (30)

bill roberts real estate, investment real estate, real estate investing, baby boomer retirement planning, fiduciary duty

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30 Comments on Have You Ridden The REO Express?

JAN

2008

I've never taken a ride on the REO express. I did go to a real estate auction once where hundreds of properties were auctioned off and it was a pure adrenaline rush!

Bill- this sounds like a great marketing tour. I need to establish a bus stop.

Mmmm. That's about $1,000 a trip. Two trips a day, $2,000 a day times. . . .

Not a bad deal for someone with a bus or fleet. They don't have to sell a thing.

Concetta, Thanks for commenting

Mark, I agree.

Lenn, Don't tell me you're think about running bus tours?

Bill Roberts

Bill, This does sound like a good idea. It would probably take more than a day to tour the REOs in my area but it does sound like an intersting way to sell real estate. Want to go in on a bus?

BB, That sounds like a very good idea. I'll drive and you can talk. We'll clean up.

Bill Roberts

Bill: My girlfriends and I were just talking about this over lunch. They are both from California, the L.A. area.

I can see your organizing a REO bus tour, Bill... good way to make some money right now.

Jan, Thanks, I seriously conxidering it.

Bill Roberts

Bill, I have heard about these in Florida. Apparently it's catching on. Pismo Beach huh? - now that's a pretty place. Hey Honey - Let's go on vacation and catch the REO Express!!!

Kate, the link is there so you watch it yourself. The houses looked good. I could imagine people all over the country drooling.

Bill Roberts

Bill, thanks. I realized that. I was being facetious. I got married on the 17 Mile Drive, Robert Lewis Stevenson Chapel. This area is one of the most majestic in the world!! It's a shame isn't it?

I believe there is an agent in the Stockton area that is hit hard by foreclosures and he takes people on the REO Bus. It is actually wrapped with the marketing message and this was in the newspaper last week.

JAN

2008

Kate, I've got to believe that the houses in that area are worth what they sold for at the peak and they'll be back very quickly. Yes, it's a shame the buyers could not hold on. We don't know how many of them were actual homeowners and how many were flippers.

As more time goes by I really hate the speculators. They screwed everything up for all of us.

Bill Roberts

Thanks Melanie, I'll Google that.

Bill Roberts

Interesting way to market yourself and REO's but certainly not cheap

Richard, Thanks for commenting.

Bill Roberts

Carlos, It is considered bad form on AR to post your link. You weren't signed in so I can't see who you are. Do you want to try it again? I will give you 30 minutes to edit your comment.

Bill Roberts

There is only so much land in Pismo Beach so of course the property values will rise again, probably quickly. It seems that the whole speculator crowd is dominated by get rich quick. What's wrong with a little hard work and common sense?

This is almost like a live version of "Reality TV", people enjoying other peoples misery. I can't for a second believe that too many who ride the REO Express are real buyers!

Kate, I don't honestly know, but at $20 a head it is a little much for curiosity seekers.

Time cures everything. Real investors know this and they are in for the long haul.

Bill Roberts

JAN

2008

Bill, I like this idea. Sure beats driving buyers around town for free!

The first ride was bumpy but now I'm getting comfy.

JAN

2008

Frank, I never liked driving people around for free.

Bill Roberts

Chuck, Huh?

Bill Roberts

JAN

2008

Please let us all know what you end up doing. The idea is different for sure.

Richard, If I do this it will definitely spawn a couple of posts. Thanks for asking.

Bill Roberts

FEB

2008

Bill - I am working on details of this right now. Some of the flippers in town have done them and couched it as part of a teaching session. They charged over $50 a head. I was thinking of doing it and charging either a refundable deposit if they got on the bus OR a refund of the fee when they bought through us (within 45 days). Our goal will be to sell the properties and not make the day rate.

FEB

2008

Rich, OK. I could see that, but why not both? Or how about double their money back if they buy through you?

Bill Roberts

FEB

2008

Bill - Not sure about the law on inducements. Also, here the word FREE is good enough.

FEB

2008

Rich, In California commission refunds are pretty standard fare for real estate agents trying to get your business.

Bill Roberts

JUN

2008

We have launched a very successful REO express....It has been awesome! Our clients love the service. My advice for everyone else is "Keep it free"

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