Special offer

Are Commercial Notes Replacing REO's?

By
Services for Real Estate Pros with Encore Investment Group, Inc.

Not one day goes by that I don't get a request for REO's.  Not that they weren't relatively "elusive" before as far as finding a legitimate tape but it seems that now they're even more difficult to find.  So are we going through a time now when investors are turning to Commercial Notes and banks are happy to unload the paper without the hassle & liability associated with REO's?  It seems so.  I had a conference call with an FDIC Note Specialist today discussing the turn of events and what to expect next.  The most impressive difference being that the offer isn't associated so closely with value like you find in REO's.  It's not unusual that an offer will be accepted far below the REO value in part  because no other offer is made & in part because of the simplicity of the transfer.  I am excited about the product I've seen and the credibility of the sources I've met with.  Note purchases I think are at a point where they are taking over the bulk purchase market.

Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

maybe it makes sense for those who are already heavily involved in REOs and just making switch to Notes.

"Regular" residential agents and brokers won;t be able to tap into this market, IMO. BBy the time they can figure it out, it would be over.

Dec 02, 2009 05:48 PM
Anonymous
Lori Giovannini

Very few people know about this diamond in the rough.  In the next few years, why would anyone buy a commercial asset even a bank owned REO, when you can buy a note through a FDIC Specialist for 20 to 40 cents on the dollar.  You are so right Dalene

Dec 03, 2009 01:59 PM
#2