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...