The Bulk REO Industry Today

By
Mortgage and Lending with United Solutions of America

We have all heard the ongoing rumor that has been circulating our industry for the past year or so...

"There is a glut of foreclosed property that the banks are holding back and anytime soon we will see an avalanche of REOs hitting the market place when the second wave hits us"

You are probably inclined to believe this because it has been getting harder to buy at a decent discount from the MLS and it has been scarce in the Bulk REO arena as well.

Well, let me tell you that these rumors are false and they have been spun by brokers and pretend investors that are not active in the business. Or by "gurus" that are trying to sell you the next "silver bullet method" by preying on your fears of the Real Estate market.

The truth is that there is more demand than supply. The players that were sitting by the sidelines are stepping on to the field, as well as a hoard of hungry international investors and hedge funds.Bank-owned-REO-homesl

In fact, the latest sales numbers have been so great that they have surpassed the number of foreclosures currently hitting the market. To be honest, I am starting to believe that there is no glut of foreclosed homes at all.

That being said, it is true that there are a huge number of mortgage defaults and foreclosures that are still hanging. This is an astronomical number, but it does not mean that there are stacks of foreclosures sitting inactive in bank files all over the world and not being marketed to the masses.

Due to a ton of misleading information on and off line, a good number of investors out there believe that they can take down Bulk REO Tapes in CA, AZ and NY at $0.50 cents on the dollar.

Ladies and Gentlemen, please hear this... Those packages do NOT exist! Bank Tapes in those markets are going for $0.80 cents to PAR; and in some instances above market value.

That is not investing, that is speculating, and we all know there is no difference from doing this to taking your capital to Vegas and rolling it at the roulette wheel.

Banks are not stupid nor going broke, they are in fact very smart and very liquid. They are releasing their inventory in those states through Realtors and retail buyers via the MLS, online, and print media.

Our company buys Bulk REO Tapes and Non Performing Notes straight from banks and asset managers. We own and control the product; there are no brokers and no "daisy chains". We even allow you to "cherry pick" from out tapes of REOs and NPNs, you can take down 1 house or the entire tape. This is very rare and hard to find!

Unfortunately, you can not say the same of most "companies" out there. All they are doing is misrepresenting product and trying to broker these tapes and participating in never ending daisy chains. There is no $0.30 on the dollar product unless you're taking down huge multi million dollar tapes at the Buffett level.

Bulk REO Bank Tapes will never be this cheap, stop your "smoke and mirrors treasure hunt" and take action now. If you keep waiting for that magical tape, you will be missing out on the biggest opportunity to make money in our nation's history.

Keep waiting and you will miss the Money Train...

 

Posted by

 

Ray Piel
Consultant

1.800.928.5899 ext. 118
1.800.928.7599 fax

 

Comments (7)

Dan Benefield
Benefield Realty - Decatur, GA

Thanks for posting Ray. It is interesting to know and perhaps an early indication that housing has already bottomed out.

Apr 16, 2010 01:41 AM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I have not been able to secure a tape in the past and now have an investor that would like to.

Apr 16, 2010 01:49 AM
Ray Piel
United Solutions of America - Orlando, FL

Hey Dan,

I totally agree, folks in our industry have kept alive this rumor of "the great avalanche" of foreclosed properties to hit the market for over a year now. To be honest I don't see that happenning. The banks are releasing the product in small pieces and that's why it is becoming harder and harder to locate product that makes sense. They're not in the business of loosing money.

Best of luck to you.

RP

Apr 16, 2010 02:18 AM
Ray Piel
United Solutions of America - Orlando, FL

Tim,

I hear you, the hardest piece of this business is sourcing real product. We are a $200MM private equity fund, we own and control our product. We protect brokers, if you have a real buyer ready to take down some REOs and/or NPNs; call me at 407-792-5522.

Please be ready to provide a hard POF upfront. As per our strict protocol, we do not release unsanitized tapes until we receive and verify the POF. There are a lot of "joker brokers" out there sending us fake POFs.

We also allow you to "cherry pick" our tapes, you can take down 5 properties or 100, it makes no difference to us.

Go here for more details: http://www.TheRehabDeals.com/BulkREO

Ray Piel

Apr 16, 2010 02:26 AM
Dave Roberts
Healdsburg Sotheby's International Realty - Healdsburg, CA

I think you nailed the market dynamic exactly. The banks aren't stupid...well, not too stupid. They are keeping the base of the market active and won't apoil their own good thing by flooding the market.

Apr 19, 2010 04:13 PM
Michael Izquierdo
LA Pocket Listings - South Pasadena, CA

A lender at five star confirmed that tape reos are not available at the pennies on a dollar or even .7 or .8 like investors are asking for. They went on to say that the bulk tapes are pretty much the "discolored " (yup thats how they phrased it) properties that couldnt sell.

bulk reo, now thats the business i need to get in. If you need a hustler broker with connections id love to talk to you more.

Sep 27, 2010 01:47 PM
Anonymous
Xavier Bey

Hello, I have REAL tapes from the FDIC 40% of market call 267-499-6847 need LOI/POF 11/8/11

Nov 06, 2011 03:52 AM
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