How to Invest In BULK REO TAPES

By
Mortgage and Lending with United Solutions of America

It is not as hard as the "gurus" would have you believe.

If you've been following the news and latest investing trends, then you are aware of the most profitable opportunity ever in real estate. I am referring of course to bulk reo investing. Never mind foreclosures and "short sale" investing, all you will accomplish at best is picking up the property slightly below current market value.


Bulk REO begins when the homeowners falls behind in their mortgage payments, then the long and grueling process of foreclosure begins. This can take anywhere from 3 to 9 months or more, depending on which state and how backed up the bank logs and courts are for the counties.

At the completion of this process, the properties become foreclosed homes. This is followed by an auction sale at the steps of the courthouse. Common to today's market, these houses do not sell and are purchased back by the issuing banks.

Once the banks take these properties back, they are assigned the infamous title of 'REO' or bank owned real estate. These REO properties are normally listed with Realtors also know as "REO Agents". These REO agents then try their best to sell these properties at market price to retail buyers or local investors.

This process leaves a sour taste in the banks mouth because it takes 6 months or more in addition to the 6 to 9 months during the foreclosure proceedings. In the meantime, the bank funds are bleeding keeping and maintaining these houses. Plus they are unable to lend out more money until they recoup enough to replenish their reserves.

Keeping in mind that banks are in the business of lending money and not selling real estate, they would prefer to sell these bad assets in bulk at a discounted rate, rather than liquidating them one at a time.

Savvy investors are taking full advantage of this "bank calamity" by taking down these BULK REO packages or "tapes" as they are commonly known. These tapes are purchased at huge discounts and then sold one at a time to local wholesalers and investors, hence the term "buy cheap and sell cheap" and still make a bundle. Or they can be sold to retail buyers over time and really stretch the profits beyond comprehension.

Bulk REO Packages give the average investor an amazing return on their investment. These packages range from as low as $200,000 to as high as $20,000,000 or more. The bigger tapes are usually traded between banks and insurance conglomerates; they're not for the average investor pool. But who cares, there is still a huge amount of money to be made with the smaller tapes.

The so called "gurus" will tell you that it is easy to buy these Bulk REO tapes directly from banks; but really, let's wake up people! When has it ever been easy to do anything with banks? Are we forgetting who got us into this current economic nightmare?

Unfortunately, this being such a lucrative trend it has spun a ton of pretenders, dreamers and scammers. Therefore, the best chance any investor has of getting their hands on a "real" bulk REO package is from a reputable Bulk REO Trader. Real REO Traders are usually backed up by Hedge Funds and being focused on a quick turn around only place a small premium on these tapes.

As an investor, you will still receive an incredible deal, perhaps even better than going straight to the bank. These hedge funds get deeper discounts due to their massive buying power.

Like in any business, do your research and make sure to play your cards right. Do not rush into anything, find a reputable Bulk REO Trader or company and call them. Don't be afraid to ask them questions.

Just make sure that you have the funds or know someone directly that has the funds to take down a tape. Or if you have a tape or know someone directly that has a tape to sell. If you notice, the key here is "directly", reputable traders will never entertain "daisy chains".

It does not take a fortune to get started but you can make a fortune once you get going.

Posted by

 

Ray Piel
Consultant

1.800.928.5899 ext. 118
1.800.928.7599 fax

 

Comments (17)

Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

I saw one of the tapes and it had nothing but junk at high prices. I rehab properties and know the value of properties in my area. These were over priced.

Apr 14, 2010 02:40 AM
Jody Lautenbach
Century 21 Premier Associates - Pella, IA

REO investing can be good or bad.  We all need to watch out. Thank for the information.

Apr 14, 2010 02:40 AM
Ray Piel
United Solutions of America - Orlando, FL

Hey Bill,

Thanks for the input.

You were probably dealing with a broker caught up in a daisy chain with a diluted tape. Plus Arizona is not a good State to trade REOs, the banks sell at 70% to PAR of market value. You would probably do better with NPNs.

Unfortunately there are a lot of "wanna be" investors and brokers caught up in these never ending daisy chains. All they accomplish is to waste your time; and time is money. We do not send out tapes until we verify a hard POF.

Other than CA, AZ, and NY, we can bring you product that we own and control at 40% to 60% of market value. You can take down the entire tape or "cherry pick" whatever tickles your investing bone. You can take down 1 property or 10, it doesn't matter to us.

Let me know if you are interested in taking down some product or if you are directly with a buyer that's interested in investing in Bulk REOs and/or NPNs.

Best of luck to you.

Ray

Apr 14, 2010 03:21 AM
Ray Piel
United Solutions of America - Orlando, FL

Hi Jody,

You are 100% correct. It all depends who you are dealing with. Just make sure that you are direct with the seller of the product and that this seller fully owns and controls what they're selling.

Let me know if I can be of further assistance.

Best of luck to you.

Ray

Apr 14, 2010 03:23 AM
Anonymous
Don Peters

We have over $50 million dollars that we need to spend in 2010 on SFR's/Reo's and SFR's Npn's. We have a proven track record with over 20 closings in the past year. If you have real product that can be sold please e mail me at petersmrrt@aol.com

Thanks,

 

Don

May 05, 2010 07:06 AM
#5
Anonymous
Stefanie Sharlin

Hello, I am looking for Apartment Complexes, 100 to 250 units, mobile home parks, 100 to 250,

and Self Storage facilities  45,000 sq ft or larger. and also, single family homesl.

 I will purchase all over the US.  How can I view your inventory ?

 

Jun 04, 2010 03:25 PM
#6
Ray Piel
United Solutions of America - Orlando, FL

Hello Stefanie,

At the moment I do not have any commercial product, I do however have nationwide SFR.

Call me at 407-792-5522 to discuss our protocol prior to releasing the tapes.

Best of luck.

Ray Piel

Jun 05, 2010 02:49 AM
Johanna Bassols
Oceanica Real Estate - Miami Beach, FL
Miami Luxury Properties

Hi Ray,

I have investors that are interested on bulk tapes in the areas of miami dade or broward county. Is there any product in those areas? I will call you in the morning for details on your protocol. Thank you!

Jun 21, 2010 12:39 PM
Ray Piel
United Solutions of America - Orlando, FL

Hello Johanna,

I do have some product in those areas, not a lot, but enough to start a working relationship. I called you and left you a message on your cell phone. Call me back when you finish your course.

Ray

Jun 29, 2010 05:36 AM
Anonymous
Fernando Acereto

Ray,

What's the best course/manual/tapes/books out there on How to buy Bulk REOs today?

Are there any REO courses out there that really have reliable information on How I can purchase REOs for my investors?

Thank you

Sep 11, 2010 04:32 PM
#10
Anonymous
David A Allen

looking for loans on c class apartment complexes in Houston and Dallas.

Construction co. management co. own 2k apts throughout Texas

equity partners, joint venture, private lenders all welcome

David A Allen

513-485-2875

allen513@peoplepc.com

Jan 18, 2011 12:14 PM
#11
Anonymous
Rich Angel

I have an investor with an appetite for bulk purchases.  Currently, this investor client operates in 11 states.  We have found that most of these come from brokers who have no control over the transaction and we have done due diligence resulting in a lot of wasted time.  If a deal is for real, so is my investor.  We can purchase in any amount up to about $120 million.   My investor is currently buying homes at the foreclosure sales and auctions.  He purchased about 300 homes last year.  I personally handled 96 closings.  If you have a deal that is for real, we would love to have the opportunity to purchase.  We are dealing with a single decision maker!

Mar 30, 2011 09:04 AM
#12
Anonymous
Leona

I have a client interested in tapes for Calfornia to start out with. Alameda, Contra Costa, San Francisco, San Joaquin, Solano and Sacramento Counties.  Do you have any available?

 

Leona.

510-712-6537

Jan 31, 2012 10:15 AM
#13
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

I had not thought of this but wow it does make perfect sense now that I read it.

Jan 30, 2013 11:02 AM
Anonymous
Jeff Sampson

I have to disagree with you. I have been a professional investor for over twenty years. I can and do absolutely buy tapes.

I am not a guru just an investor, if you wish to make these kinds of deals the age of the internet really has made investing in tapes possible. First if you want to make these kinds of deals set yourself up to receive offers. Get a little education, find a mentor/coach listen, take notes, take action.

Here is the secret sauce to successful tape purchase and sale. Develop RELATIONSHIPS, join groups like here and number one Linkedin participate in discussions be real let people get to know you you do NOT need a hedge reverse the deal and sell to the hedge fund.

If anyone listens to me here thanks before you begin the journey learn some terms used in the business so you can talk sensibly and not make a fool of yourself. And lastly remember those you meet want to help they were rookies once as well paying it forward is life and love.

Jul 15, 2014 02:05 PM
#15
Anonymous
Duke




We are Buying BULK REO & TRUE OFF MARKETS


FANP HOLDINGS LLC & Acquisitions

Duke Peebles/Co-Owner/Investor/Principal/Executive Managing Partner

fanpholdings@yahoo.com 843-730-0432

Partners: RW/RJ/DP/MV

•We Need REO, Bank Assets, Off Markets of Apartment Acquisitions & Hotel's Wanted

•We PREFER REO & OFF MARKET, must not be published in LoopNet or it will be disregarded

•We PREFER BULK REO SFR 50 homes to over 500+

•Looking for medical centers, hospitals, anything that is already set up as such. must be over 20,000 sq ft. + can be vacant, distressed or fully functional will be fine. Off Market & REO Only!

•Will SERIOUSLY consider older properties with little to No deferred Maintenance REO & Off Market

•We Prefer Hotels to be in good shape, 70 Keys or More REO & Off Market Only

Networking opportunities on Private Off Market Deals

•We have clients that we need to satisfy. We are strictly looking for off market deals, private non published in any way. This will be quick and decisive and we prefer them to be 50+ to 1000 Units. if its under $10M then we will buy them, any thing more we will hook our client for the deal up to -$500M or more.

•We also have private clients that are ready to purchase Bulk REO's and Apartment Complexes in the amounts of $2M to $500M+

•MULTI FAMILY APT COMPLEXES THAT ARE Class A & B, REO & Off Markets Wanted

Sep 09, 2014 03:43 PM
#16
Anonymous
Thomas stern

due to health condition,--------3)retail space. 332 phelps 3100 sq ft. $400dn $325mo total $19,400-----5) retail 1800 sq ft 322 phelps. $300dn. $250mo. Total $14,300---------15)  3100 sq ft retail 330 phelps  $350dn $300mo total $18,300-16). Appox 1400 '  building with 9600 sq ft  lot only $350dn $325mo total $19,350-----all properties located in Littlefield,Texas excellent package deal for right  investor.call 806-535-8056 or call 806-797-6481Littlefield $250 million milk plant coming soon call for more details 806-797-64813.5 acres commercial lot next to 4.2 million retirement home excellent for any development must see  only $700 down $400 monthly. Total  $38,700. ---802 Mlk Blvd.   plus large 1 acre commercial lot  located at 608 Idalou Rd. great location for almost any business only $400 down. $325 mo. Total $16,400 must see can call owner any time 806-797-6481 must sell due to health     .

Mar 18, 2016 06:20 AM
#17