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How to Make Money with Bulk REO Investing

By Duncan Wierman

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Published: 15Aug2010
Word count: 435
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Their is a huge opportunity that exist for investing in Bulk REOs. Many banks are now willing to sell their non performing assets for a small fraction of their value. When you choose to start investing in Bulk REO propety, it is about creating relationships with banks. hedge funds, and private investors and other buyers. You part is to act an intermediary between the buyer or the seller and charge a small fee for facilitating the transaction.

Banks do not want non performing assets on their books. The reason for this is that banks have to hold back more money in reserves to cover potential losses and that means they cannot lend that money out either. The banks do not want the associated costs, taxes, maintenance, insurance and utilities. Banks are in the business of lending and not real estate investing.

Banks therefore will offer property portfolios of these bad assets to investors at reduced prices. Real estate investors offer banks the unique ability to unload their bad debt quickly so they can put more cash back into the lending system Everyone wins.

Despite how fantastic bulk REO investing may seem, some training is advised before jumping in. You need to learn some strategies on maximizing investments and avoiding any risk. Bulk REO training teaches will teach you how to maximize profits and close your deals fast for huge profits

To get your hands on the bulk reo properties, its best to keep in open communication channels with as many banks as possible. One way to find banks with troubled assets is to search through FDIC bank listings and also corresponding bank investor financial news. This information is very easy to view online. Once you know where the problems in the banking system are, its now a matter of offering them your solution.

Investing in Bulk REO's is a niche to get involved in for 5 reasons.

1. Wholesale prices. Bulk REO Properties can be purchased at 70% less than the real value.

2. No Financing Required

Buyers are often hedge funds and private investors who have money available to pick up these deal quickly

3. Minimal risk As an intermediary, you are only facilitating a transaction wihout risk.

4. Huge Returns.

With banks selling bulk properties at low prices and multi million dollar price tags, a small percentage point fee adds up into big profits.

5. Immediate income

Buyers are in abundance for your deals. Transaction are usually under 30 days.

So while bulk REO properties are not for the everyone, the strategy should still be considered. Get some basic training to begin and build your credibility so you can be successful.

Duncan Wierman is a founding member of Bank REO Property Deals. He has written a complete guide to the BULK REO industry to assist investors to be more proficient and to produce quality product. You can find out more about this concise guide at www.bulkreopropertyinvesting.com

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