Upload
others
View
38
Download
0
Embed Size (px)
Citation preview
BULK REO
WEALTH FILES
INSIDER SECRETS
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 3
Table of Contents
Bulk REO: The Recession Money Maker………………….……………3
Why it is a good time to buy Bank owned properties?……….….……….……4
Foreclosures and Bank Owned REOs……..……………………..…………..........6
History of foreclosures and Bank REOs 1930’s ……………………………….…7
Resolution Trust and foreclosures in the 1980’s ………………………….8
7 reasons to buy bulk reo properties ………………………………………..10
Why buy bank owned REOs instead of short sales ………………………….12
The difference between non performing loans and REO …………..……….14
What is a BPO? Brokers Price opinion?..............................................…15
Top 35 List of REO banks with REOs to sell………………………….…………17
Why Bulk REO investing is a great investment strategy ……….…………..21
Buy Bulk REOS from 40% to 91% discount ………………………………….…23
Make $100,000 on your next Bulk REO Purchase Keyword …….…………25
Bulk REO Purchase Procedures …………..………………………………………..26
What is a Wholesale Bulk REO Purchase Program?............................…29
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 4
Bulk REO: The Recession Money Maker
With current legislation making the real estate market
nightmare, the hope and dreams of many real estate
entrepreneurs seem almost dashed. Once again, the big
guys got the bailouts and the little guys were left out in cold.
But there is a way out. There is one sure way to reincarnate
the real estate money maker. There is a way for everyone to
get their money and keep it too. It is called Bulk REO.
REO, “real estate owned properties” refers to assets a bank
or lender owns after foreclosing on a property. Bulk REO is a
group of REOs that a bank or lender groups together for
sale. The wonderful thing about Bulk REO’s is that they are
usually sold for a small fraction of the real value. To recover
some money banks often auction them off in a bulk at
steeply discounted prices. Needless to say, Bulk REO offers
real estate investors an excellent chance to regroup and get
back to the horse.
Bulk REO are below MLS, BPO, cheaper than private sellers,
auctions and are a fraction of any approved short sale price.
And the little known fact is that they are accessible to
everyone and anyone-even without cash or credit.
How? Simple! Bulk REO investing is based on the
relationships with key Bulk REO market players. You end is
to act as broker to the buyer or the seller and charge a fee.
Yes, you can represent them at the same time. See what I
mean?
Banks do not want bulk REO’s nor do they want their
associated costs, taxes, maintenance, insurance and utilities
and investors get them at substandard prices. Banks want
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 5
money not the bills. They have no financial gain by having
properties on the books. Real estate invertors want the
properties to get money by giving other people bills. And at
the fraction of the cost, it is a sweet deal. Everyone wins.
Despite how sweet bulk REO may seem, some caution is
advised.
To avoid loopholes, sinkholes and investing too much too
soon, Bulk REO investment requires training. Training offers
easy, concrete and solid strategies on maximizing
investments and avoiding risk. Like in any business, the
secret of how to go about it is limited to the lucky few who
have either figured it out on their own and those who have
actually decided to go trough with the training.
What Bulk REO training teaches you is how to increase the
profit from $15 000 to five to ten times of that per sale. It
teaches how to close a deal fast. It teaches you that anyone
can do it. It teaches you that do not need to be a middle
man. And as the learning curve builds up on acquired skills
to provide you with a one way ticket to what is dear and
near to all our hearts- money.
Bulk REO is a great opportunity to make money and join the
ranks of recession millionaires. The catch is tread carefully,
get training, make good picks, go slow and Bulk REO
investing can turn a sometimes profit into a great profit.
Why it is a good time to buy Bank owned properties
from Banks and lenders?
Recent recession has made a resonating impact to the Real
Estate market. Sputtering and slowing down trough investor
financing obstacles, real estate has simply stopped
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 6
delivering for the little guy. Considering it is the little guys
who do most of the work, this hardly seems fair. And it is
not. Life is not fair. That is - unless you are in the know of
the trade secrets of hidden money markets. And there is one
for real estate. It is called REO or Bank Owned Properties.
We all know what happens when a homeowner defaults his
of her mortgage. Property foreclosure and auction bidding.
No foreclosure bid and the once idyllic family home becomes
a bank owned property. Make no mistake, banks and lenders
are not in it for the property. Gained properties are as much
nuisance to them as to their former owners. Bills, repairs,
maintenance, you name it. From banks point of view,
hanging on to foreclosed property is the equivalent of
renting prime estate on a major fault line. And as far as
banks go - that kind of earthquake does not pay.
Furthermore, banks are required to clear their inventories of
bank owned homes or face the wrath of industry regulators.
Needless to say, banks on do not want houses. They want
money. And if they cannot get money thought mortgages,
they will get at least some of it by selling bank owned
houses.
That is the hard, not so cold, truth and great news for
struggling real estate investors. No financing? No problem!
To speed up the process and get back to what banks love
the most - lending and money making - Bank Owned
Properties sell at a mere fraction of the price. We are talking
about anywhere from 5% to 30% from market value. Talk
about getting dollars for pennies! And tying into that is the
fact that banks will gladly finance real estate invertors going
for Bank Owned Properties to give them time to work the
deals.
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 7
Most Bank Owned Properties are freshly rolled and in a very
good condition as banks put them on the market as soon as
they get them. Low price and good condition make these
properties an ideal choice to get back into real investor
game, guns blazing and wallets bulging.
To get your hands on the best bank owned properties, it is a
good strategy to keep informed. One ay is to search bank
foreclosure listings. They provide bank owned property
information with the click of the mouse. Time saving,
efficient and educational, foreclosure listing are best cheat
code for bank owed properties spinning.
To summarize:
Bank Owned Properties:
Banks do not want them… They sell them in a bulk…
At the fraction of the price... In good condition... No financing required… Easy profit…
And you thought Christmas was once a year….
Now go out there and make money!
Record Number of Foreclosures Means a Record
Number of Bank Owned REOs
With the recession looming, homeowners are in a financial
bind. It is in equal parts bad and good news. Bad for
average real estate agent as property purchases are hitting
the record low. Good for real estate investors as property
foreclosure are hitting the record high. Foreclosures end up
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 8
as Bank Owned REO Properties, and banks, having no
interest in bothering with upkeep, sell them in bulk for
pennies. Pennies that turn to dollars when bulk bought
properties are resold. Real estate investors’ dream.
Hard facts back up the promise.
With the 2010 unemployment rate hitting 10.5%, the
number of homeowners defaulting on their mortgages is
surging. Foreclosures are reaching as many as 7 million
mortgages, with additional 5 million being at risk of default
where borrowers owe more than the property is worth. The
2010 US Foreclosure Market reports 15% percent increase
from 2009, with total increase of 38 percent from 2008,
meaning that roughly one in every 409 US households has
filed for foreclosure. This is the highest foreclosure rate since
the real estate buckling began in 2005.
The Bank Owned REO activity is up 31 percent from January
2009 with default notices up 4 percent from 2009 and
scheduled foreclosure auctions up 15 percent. California,
Florida, Arizona, Illinois, Michigan and Texas are focal points
accounting for 60 percent of national foreclosed properties
with Nevada, Georgia, Ohio and New Jersey following close
behind.
Faced with deteriorating situation, lenders are moving in on delinquent loans and pushing foreclosures. As banks and loan servicers work their way through loan-modification applicants, Bank Owned REO Properties are increasing and starting to choke strictly scrutinized bank system. According to current trends, bank owned REO properties are expected to peak at 538,000 by fall of 2011. Desperate to clear the books of accumulated REO bank are selling them in bulk at the lowest observed rates. Financing is not an issue. With
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 9
rapid and convenient Bank Owned REO Property sales
process, lenders typically respond to written purchase offers within 48 business hours.
Market is flooded with Bank Owned REO Properties.. Banks
do not want them. Real estate investors need them. Prices
are at the record low and the time to strike is now. With so
many players in the game, the trick to get ahead of the
curve is to get access to Bank Owned REO Property lists.
Without lists in hand the pickings are slim and the profits
partly. While the lists are kept in good confidence, savvy
real estate investors know - where there is will there are
means. Getting to bank owned REO lists is as easy as
singing up with trusted REO expert.
Bank Owned REO Properties are a nice a convenient way to
get your money maker going again. While some consulting is
advised to get to best Bank Owned REO Property lists, the
effort and the time spent is well rewarded. Bank owned REO
properties – the best way to make money today.
History of foreclosures and Bank REOs 1930’s
Real estate is not immune to market conditions. If history of
foreclosure is anything to go by, real estate, same as mere
mortals are affected by constant ups and downs of economy.
The US foreclosure story goes back to early 1930’s. The
Great Depression hit US with resounding crash of the Wall
Street Crash in October, 1929. Sweeping like unstoppable
wave it bowled over US economy, crushing employment,
housing and bank markets. Coincident sand storm and
draught season hitting US with vengeance added to misery
of farmers. Resulting fallout marked the beginning of a
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 10
decade of high unemployment, low profits, deflation, and
yes Bank REO first recorded highs in US history.
The jobless and farms hemorrhaging money could not
finance the mortgages and thousands of houses and farms
went to foreclosure. Homeowners and farmers alike pledged
their assets as security on the loans. Desperation and loan
rates flew high, wages and income run low and many were
left with little choice but to sell their homes and farms to
manage incurring debts. In rates similar to those observed
in today’s recession nearly 0.73 percent of all housing in the
US ended up as bank REO. While some attempts were made
to slow down the foreclosure on agricultural sector with
passing of the first major farm legislation, the Agricultural
Adjustment Act of 1933, it was but a drop in bucket. Most
went under anyway, ended up ad bank REO’s and more to
boot, the federal government's agriculture control brought
more headache than good on the long run.
Farm and housing properties alike could not escape the
wrath of foreclosure and in the end ended up as bank REO’s.
With increasing trends home loans hit the all high of roughly
1,000 daily foreclosures by 1933. The foreclosure rate
growth exceeded 1 percent annually from 1931 to 1935,
with 10 in every 1,000 households falling prey to collectors
and banks. While concrete data on exact delinquency rates
for 1930’s are not clear, records do indicate that the number
of foreclosed homes in 1930’s was close to 217,250.
Hard times and failing economy lead to the birth of the first
known Bank REO auctions, the so called “penny auctions”.
Trying to salvage costs, banks set to sell acquired
properties, land and equipment expecting to make hundreds
and very likely thousands of dollars. Things however do not
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 11
always work out and banks had little choice but to sell for
the mere pennies of the real value. Much like in today’s
Bank REO’s bank did not make money on sales but merely
purged the properties from its lists of assets. The real
winners were parties buying off Bank REO’s trough penny
auctions to do with them what they will following the title
transfer, that being habitation, rent or resale.
History teaches us a valuable lesson once again. Whatever
the underlying circumstances may be there is always a way
to cut a deal and make money. Fortune favors the brave.
And the informed.
Resolution Trust and Foreclosures in the 1980’s
Resulted in Many Bank Owned Bulk REO Properties The 1980’s started with a bang. Aggressive real estate
investing has run its course and crushed USA economy
tough collapse of savings and loan associations. USA faced a
new financial crisis swatting the real estate and the
government alike. Once again foreclosure reared its ugly
hear, banks busted at the seams with REO Properties and
real estate investors everywhere rejoiced. Principe was the
same with some subtle differences. This time around more
investors were aware of just how to take advantage of the
Bank Owned Bulk REO Properties.
Amidst the new economic crisis, USA Government came up
with a bailout bill to limit the damage by merging or closing
down the insolvent savings and loan institutions. Resolution
Trust (RTC), USA government-owned asset Management
Company was created and charged with liquidating
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 12
properties and assets deemed insolvent by the Office of
Thrift Supervision, ie. the Office of Bank Supervision.
The RTC mission?
Dispose of the Bank Owned Bulk REO Properties as quickly
as possible for maximum value.
The goal?
Reduce taxpayer exposure.
And - make money!
To ensure no ground was left uncovered, RTC implemented
five distinct partnership programs, Multiple Investor Fund
(MIF), N-Series and S-Series Mortgage Trusts, Land Fund
and JDC Program. When initial unsuccessful attempts to
capitalize on the bulk resale of insolvent (read Bank Owned
Bulk REO) properties failed to bring desired profits, RTC
came up a strategy that took the game to the next level.
Understanding that increasing demand runs the sales under
any conditions, RTC concentrated on generating and
increasing interest in Bank Owned REO Bulk Properties.
What a better way to do so than by launching brand new
“equity partnership” program. Trough equity partnerships
RTC single handedly pushed for Bank Owned REO Bulk
Properties management and sales on their own terms.
Private sector equity partners inflated the interest in Bank
Owned Bulk REO Properties, while RTC controlled the
management, distribution and sales. In other words, RTC
successfully executed the drive and demand driving the “ka-
ching!” trough the roof.
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 13
The strategy was simple. Swoop in and seize Bank Owned Bulk REO Properties. Generate interests. Then resell the same assets to bargain-seeking investors. The strategy worked like a charm. By 1990’s RTC moved some 747 Bank Owned REO Properties, owned 350, generated $400 billions and deservedly tapped itself on a shoulder for having the foresight to move money during economic crisis.
But all good things must come to an end and so did RTC. By 1995, economic crisis fizzed out and RTC derailed to Savings Association Insurance Fund (SAIF) under the Federal Deposit
Insurance Corporation. Following the fate of many insolvable properties it handled for a decade, RTC too was then dissolved and most assets sold.
The good times rolled, the money lasted for a long while and the lessons learned were invaluable to future real estate investors. Get going while the going is good! Or you just might miss the train... and that is a one way ticket…
7 Reasons to Buy Bulk REO Properties
Nine to five not your thing? Thinking of investing in Bulk
REO? I can tell you with certainty of years of experience in
Bulk REO properties that this is a great decision. It is also
the one that could make you thousands of dollars. And if
making good money is not reason enough to go for it there
are seven more great reasons to buy Bulk REO properties.
Let’s start the countdown:
1. Bulk purchasing
Much like tomato sauce in Price Choppers, Bulk REO
Properties come in wholesale packs and great prices.
Bulk REO Properties sell up to 50% of the real value.
Banks do not want to waste money taking care of
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 14
them. The best they can do is selling them at
discounted prices to clear their books. Everyone wins
and you toast over a great profit margin.
2. Debt free investing
Worried about financing? Don’t be! Banks are so eager to get rid of Bulk REO Properties that low prices mean you are likely to find many financial sources ready to back you up. Hard money, commercial financing and
non conventional hedge funds and private investors are all on the plate. With them on board, you profit by gaining properties and not the debt. Isn’t life grand?
3. Minimal risk exposure
The wonderful thing about bulk REO is that it does not require large investments. Better yet it does not mean big loans. What it does mean is purchasing Bulk REO
properties in good condition at the fraction of the price and reselling them at full price. And that means minimal risk exposure. Meaning, invest away. And strike while the iron is hot.
4. Direct access to bulk REO dealers
Access! Access! Access! That is the key to Bulk REO purchasing. Many have tried and failed without means
of getting to coveted REO sales lists. No need to waste for untold hours knocking on firmly closed doors. Success comes with something as easy as going with your local bulk REO property expert with direct access to the coveted lists. A great way to stop wasting time and start making money.
5. Access to shadow inventory
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 15
Shadow inventory, a simple way to call a list of 2 to 8
billions worth of homes in default and foreclosure, can
have grown weep and bulk REO investors pull their hair
out in frustration. Frustration because shadow
inventory is one of the best kept list in bulk REO
purchasing. And “hair out” because you must have it to
make money on bulk REO. But fear not. Join any Bulk
REO expert and shadow inventory is yours for the
taking. And the money making.
6. Profit
Simply put Bulk REO Properties mean cash. With banks rolling bulk properties at low prices, entrepreneurial REO investors have unique chance to take advantage of favorable conditions. Minimum investment for maximum cash. What more can an investor ask for?
7. Immediate income
Short of wining a lottery bulk REO is a perfect way to
stuff oneself with cash to the gills. By purchasing bulk
REO properties at 50% off and reselling them at full
price, the difference turns into immediate income. No
waiting, no hassling and no question about it.
So while bulk REO properties are not for the faint to heart,
they are definitely for the ones fond of money. Because any
way you spin this story, bulk REO purchasing means low risk
and great profit. Period.
Why Buy Bank Owned REOs Instead of Short Sales
Question that often pops up is – why go for Bank Owned
REO properties instead for short sales? It really all comes
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 16
down to which method brings you more money, at lower
risk, faster. With current market conditions real estate
investing is hard enough. Now more than ever, it is time to
go with strategy that guarantees success.
Comparing short sales with Bank Owned REO properties is
really comparing pears with apples. The script is the same.
The differences are in lender’s legal ownership of the
property, sale conditions and consequently the sale price.
It is a familiar story. Homeowner is behind on their
payments and the property is heading toward foreclosure.
And it goes two separate ways from there.
Short sale is sale of distressed property before it hits
auction. The property is owned and sold by the homeowner.
Bank or mortgage lender agrees to discount a loan balance
on the property, the owner sells it for less than the
outstanding balance of the loan, and turns over the proceeds
of the sale to the lender. Consequently, homeowner will try
to get as much as he can out of the sour deal and hike up
the price. The homes purchased are as is, and chances of
having homeowners do repairs are slim to none. Can you
blame them? In short sales, the homeowner’s motivation is
money. And 100% of the time they will go for the highest
offer. Similarly they will wait to make the sale to make sure
they receive the highest offer. You may spend good time
waiting and never hear back from the seller. Waste of time
and money, wouldn’t you agree?
In bank owned REO’s, the bank owns and sells the property. Bank owned REO property has been acquired by the lender through a foreclosure action. Banks really do not care for
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 17
keeping the property. For them property means
maintenance. And maintenance means loss of money. This is why banks will let the bulk REO properties go for much less than the loan balance. In fact, banks is so willing to get rid of REO that it is possible to make an offer contingent upon an inspection to see if any major repair work is needed. And with the owner out of the picture buying Bulk Bank Owned REO means no haggling, great price and in short - a sweet deal.
The bank’s motivation is to sell properties fast. While bank will not go unreasonably low, the highest price will still be well under the short sale price. And auction style sales means you will know where you stand in short order. As a serious real estate investor you have to ask yourself a question: What is your goal? Serious money or counting pennies?
Are you willing to wait and risk ending up with a zero? Or - would you rather swoop in and score a handful of properties for a great price at …say…..50% off? I think the answer is clear. To make good money - you must act fast. See the deal, grab the deal and run with it. Otherwise you will be left out in the cold.
Non Performing Loans vs REO Bank Owned Property: How Do They Differ?
To make real estate investing work for you, you must always
take into consideration economic conditions that dictate
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 18
which type of real estate investment is the best choice at
any given time. Do you know your basics? What are Bank
Owned REO Properties or non performing loans? What is the
difference between the two? It is quite simple really.
Both non-performing loans and REO Bank Owned Properties
are the unfortunate children of economic fall down. As
economic crisis takes swing so does loosing homes as
struggling homeowners cannot keep up with loans and
mortgages.
An adaptation of the well know children rhyme “First comes
a non performing loan then a foreclosure” does well to
illustrate the progression of distressed property handling and
the major difference between the two concepts. Whereas
they undoubtedly trod the same road, the difference in how
far along the road each is.
Say a homeowner cannot afford to pay a loan anymore. First
month the bank lets it slide. The second month, they mail
the letter. The third the gavel comes down – the property
has been declared a non-performing loan. For all intents and
purposes non-performing real estate loan is a property loan
that has defaulted or is in danger of defaulting when
homeowner cannot make payments any longer. With some
exceptions, three months is all a homeowner has to turn
over the dough before his loan is declared non-performing.
And current economic conditions being as they are, non-
performing loans are sprouting like mushrooms after rain.
Financial corporations specializing in non performing loans
will help with purchasing a loan that best fits individual
financial portfolios. By liquidating involved assets they can
realistically provide a good value. But not a 50% discounted
price. Not with complementary property repairs. Not bulk.
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 19
And certainly not without tons of paperwork and fees. None
of the things Banks Owned REO can and will do to move the
sale along.
Bank owned REO property, on the other hand, is the next
step in the distressed property timeline. No payment on a
property loan will sooner or later result in “walking the
plank”, in other words the dreaded foreclosure. Foreclosure
unceremoniously plunks down distressed property to the
auction table. Properties that cannot be auctioned off it end
up as Bank Owned REO Properties. With current economy
banks have a veritable tsunami of real estate properties
coming their way. Wildly scrambling to regains at least some
money and clear the books, banks sell Bank Owned REO
Properties like tomatoes on local market, at a discount, liens
and other expenses on the home removed.
While both are viable options for a real estate investor,
everyone wants to buy where a deal is better. And in real
estate, affordable, bulk, plenty and flexible of Bank Owned
REO is a far better than a sometimes, costly, and rigamarole
non-performing loan.
And who wouldn’t go for a deal that will brings maximum
profit on a minimum investment, fast.
What is a BPO? Brokers Price opinion?
What is a REO property worth? How do you know you are
paying a fair price? Who calls the shot? The answer is -
Brokers Price Opinion (BPO).
Three little words define how the banks, lenders and
mortgage companies value and price properties where:
Appraisal is not deemed necessary
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 20
Delinquent property is pending foreclosure
Property is about to be refinanced
Somewhere along the distressed property timeline, banks
want to know what’s in it for them. Can they realistically sell
it or ship it over for a foreclosure, auction and ultimately
bank owned REO. Broker Price Opinion (BPO) is an
affordable and great way to figure it out. Based on Broker
Price Opinion (BPO) banks make the verdict and set the
price. Properties that are valued high go to short sales and
those that are low go straight to foreclosure and bulk reo
sales lists.
A broker evaluates a property and gives estimation on its
value by assessing the following:
Comparable properties value Local sales trends,
Associated costs of having a readying a property for a sale
The Cost of repairs, if any, needed
There are two ways a broker can go about this:
Drive By BPO or, Internal BPO
Drive By BPO
Drive By Brokers Price Opinion (BPO) have very specific and variable information requirements. Typically Drive By Brokers Price Opinion (BPO) involves an evaluation of property condition, location, conformity and amenities, including but limited to:
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 21
Broker information
Property type, style and age. Property size, square feet, lot size, number of rooms Property Location Conformity to neighborhood and zoning Exterior feature evaluation and condition. Habitation status. Occupied or not? Amenities. Parking, pool, gym? Property photos. Two minimum Minimum of three recently sold comparable properties
Minimum of three currently listed comparable properties.
And for all that, the price of Drive By Brokers Price Opinion
(BPO) is a round $50.
Internal BPO
An internal Brokers Price Opinion (BPO) is another story all together. Broker goes after everything covered in Drive By BPO and then details interior. Square footage, room count, room photos are all collected, including:
Room measurement. Square footage. Condition of interior features. Value adjustments to comparable values Room photos
Interior damage photos Repair estimate if applicable Cleaning estimate
Internal BPO may also include taking care of:
Lock rekeying Winterization. Trash removal
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 22
Snow removal
Damage repairs Trash removal Securing the property
And of course, with all that an Internal Brokers Price Opinion (BPO) rakes up to a nice price tag of up to $175.
Costing less that appraisal, Brokers Price Opinion (BPO) is a
win-win solution for anyone, for the homeowner looking to
refinance, for lenders looking to put a property to
foreclosure auction, banks figuring out prices for bank owner
REO properties, and for the real estate investor looking to
cut a deal.
Top 35 List of REO banks with REOs to sell
In bulk REO property investing getting to right REO lists is
crucial and going straight for the best source is the way to
go. Like in any market, in Bulk REO there are the top dogs,
the favored few and the powerhouse banks behind property
lists. The top 35 REO banks with red hot REO properties to
sell are:
1. AmSouth Bank
URL: Regions Bank Owned
2. Bank Of America
URL: Bank of America Bank Owned
3. BB&T
URL: BB&T© Bank Owned
4. Citibank
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 23
URL: Citibank Owned
5. Compass Bank
URL: Compass Bank Owned
6. Fannie Mae
URL: FannieMae Bank Owned
7. FDIC
URL: FDIC Bank Owned
8. Fidelity National Financial
URL: FIS Bank Owned
9. First National Bank of Alaska
URL: FNB Alaska Bank Owned
10. First Preston
URL: First Preston Listings
11. HMBI
URL: HMBI Property Search
12. Home Loan Bank
URL: Home Loan Bank Owned
13. HSBC
URL: HSBC Bank Owned
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 24
14. HSBC Commercial
URL: HSBC Commercial Owned
15. HUD
URL: HUD Owned
16. Indy Mac Bank
URL: IndyMac Bank Owned
17. Integrated Asset Services
URL: IAS Bank Owned
18. JP Morgan Chase Bank
URL: JP Morgan Chase Owned
19. Kennedy Funding
URL: Kennedy Funding Owned
20. Kentucky Housing Corporation
URL: KHC Owned
21. Keystone Asset Management
URL: Keystone Asset Management Bank Owned
22. Lenders Asset Management
URL: Lenders Asset Management
23. M&T Bank
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 25
URL: M&T Bank Owned
24. National Bank of Arizona
URL: National Bank of Arizona Bank Owned
25. NewBridge Bank (former Lexington State Bank)
URL: NewBridge Bank Owned
26. Ocwen Financial
URL: Ocwen Bank Owned
27. People’s Bank
URL: People’s Bank Owned
28. PNC Bank
URL: PNS Bank Owned
29. Premiere Asset Services (Wells Fargo) URL: Well Fargo Bank Owned
30. Private Financial Services (Bank of OK) URL: PFS Bank Owned
31. Regions Bank URL: Regions Bank Owned
32. Zions Bank
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 26
URL: Zions Bank Owned
33. U.S. Bank
URL: U.S. Bank Owned
34. Unity Bank
URL: Unity Bank Owned
35. Western Bank
URL: Western Bank Owned
The golden rule of sales stands - for the best deals go
directly to the supplier. And for real estate investor that
means going to banks for bulk REO lists to fully profit from
toe curling discounts. You don’t have to go trough a middle
man. You don’t have to share toys. You do not need
someone else to make introductions. You can have your
cake and eat it too. Successful ROE investors known that to
make it, they must go straight for the top. So - smile and
introduce yourself “Hi I am so and so, the real estate
investor. I am here to take bulk REO off your hands. You will
love my offer and here is what I can do for you…”
You will like the results.
Why Bulk REO investing is a great investment
strategy?
Bulk REO investing is a saving grace of many real estate
inventors desperate to climb out of the recession hole. And
with a good reason. Bulk REO is a sure way to bring in
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 27
millions for pennies. All you need is nerves of steel, good
guts, solid strategy and great love for what we all hold dear-
money.
Love for money is a given if you take time to read this
article. So are the guts if your bank account is on a ready.
We will supply the strategy and nerves of steel come with
practice so don’t worry about that for now.
After all, bulk REO investing all it is not much different than
paying poker. With cards open. Oh yes! In Bulk REO all
cards are on the table and your bank account better be on a
ready. Rules are simple enough. Keep your cool, don’t
expect miracles, don’t bet too high, be good for your money
and for god sakes do not try to cheat- you will be caught.
Play the right card at the right time and you will clean the
table.
What it comes down to is that as far as strategy goes, Bulk
REO investing is your game as it has easy to follow rules:
Going is good while demand is high and supply good.
With so many properties going in foreclosure, supply of
bulk REO is reaching epic proportions. Banks are itching
to clear out their over-flooded books. Demand for
money making flips is high perfectly matching the
supply. It is clear skies for a gutsy REO investor.
Bulk REO sets realistic goals.
Think millions, not billions and you will better be able to
gauge the angle, the investment needed and the
weighed risk. There is nothing worse that trying to
jump a mile and falling short by a meter. Start smaller,
work your way up and you will succeed.
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 28
Good reputation reels the money in.
We all have to start somewhere. Same with Bulk REO.
Do not hesitate to contact the bank with a nice rooster
of Bulk REO ready for taking. To pony over Bulk REO,
banks want to be sure you are good for it. You need to
build trust. Start off with a few smaller investments to
build credibility. Once you have it, you are on your way
to the big leagues.
Open cards.
Bulk REO is a simple transaction with simple rules. You
pay and banks give you Bulk REO. Going in with the
major bank guns blazing just to kiss the wall when they
ask for few million you know you don’t have - is bad.
To avoid having the door slam shut in your face, be
honest. Communicate your budget, start with smaller
banks and move up. Banks love a reliable investor.
Adaptability.
With bulk REO, you can work on your own schedule and
at you unique abilities. The wonderful thing about Bulk
REO is that it works with any budget. If few million is
out of your reach start smaller. Low risk means
anyone can make it in Bulk REO investing as long as
they apply solid business practices.
Bulk REO is the investing of the future. As strategy and
income builder it is superior to many investment strategies
that deal with red tape and small print. By borrowing from
established practices of simple supply and demand, Bulk
REO is simple the best thing around.
Make $100,000 on your next Bulk REO Purchase
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 29
All set to purchase Bulk REO? Ready to start making money?
How much money can you realistically hope to make? Quite
a lot actually. The conditions are so good you are looking at
six figures. And making a $100 000 off of bulk REO purchase
is as easy as the 1,2 3:
1. Timing.
Now, more than ever, is the right time to purchase Bulk
REO! With current economic dip, there is so much Bulk
REO to go around that banks are throwing it on the
market at 50% of real value. You can realistically
expect to make a great investment and flip it for a
good profit. Financing is not a problem, the risk is
minimal and the money is great.
2. Deals.
There are a lot of great offers out there – and a lot of
was to make a great deal! Bulk REO profit depends on
what kind of deal you get. In equal parts luck, access
and good networking, making a great deal is as easy as
being at the right place at the right time. Get access to
bulk REO lists. Build good relationships by covering
your investments. Mingle. Get your name out there.
Network. Ask for professional help. Like in any other
business if you want to make a great purchase and sell
at a good price you need the right connections. That
means going with bank or becoming a Tier 1 buyer.
Either way you get to purchase bulk REO:
Wholesale
At great discounts
With maximum sale potential to secondary buyer
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 30
Right connections also mean more financing. Leave the
stories of million dollar investors to fairytales. Realistic
aim is to get few investors in on the deal and make the
offer.
3. Commission.
No one works for free and neither should you. Set a
good commission! There are three ways to go about it:
Mandate or Broker
Cash Buy Approach Rent or Sell Approach
Mandate or Broker
The profit on purchased Bulk REO depends on how well
you can spread the price. You need to have a clear goal
of how much money you expect to get and set your
commission accordingly.
What is you commission? One percent? Three percent?
More?
What is you commission goal? $10, 000? $50, 000?
$100, 000? Yes?
If you purchase Bulk REO for $1 million and sell it at 1
% commission all you get is $10 000, a paltry pickings
for the new mover and shaker. At 3% you get a round
$30 000 and some regrets. With commission at 10%
and $1.1 million sale, voila a nice round $100 000 goes
straight to your pocket. Get the picture?
Cash Buy Approach
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 31
No banks? No connections? No problem! Work as Tier 1
buyer! Tier 1 is private equity hedge funds, real estate
investment trusts, or high net worth investors who can
finance bulk REO packages of 100 plus properties
Rent or Sell Approach
After you purchase Bulk REO you have a choice- you
can sell it or rent it. Traditional mortgage is a nice way
to make money off of purchased Bulk REO.
REO sales offer great opportunities. You can make as
much as $100 000 profit when you purchase bulk REO.
It all comes down to making the right connections
picking a good deal and making a smart sale.
Buy Bulk REOS from 40% to 91% discount
Ever wonder where you can get the cheapest bulk REO for
your money? Yes, you can buy Bulk REO for up to 50%
discount. How about at a 90% discount? Why yes, I do have
their phone number. Read on.
Following the unwritten market rules, for best price go
direct, applies to bulk REO. Purchasing directly from the
bank significantly cuts the costs and can lead to 40 to 90 %
discounts. Who would pass up an opportunity like that?
Anyone, who is not aware such an opportunity exists.
So why is buying REO directly from bank so great? How is
90% discount possible? Three word answer – no retail price.
Whoever retails wants to make something on it. Same with
Bulk REO. When you buy bulk REO from source other than a
bank the price gets higher and your discount smaller. Banks
are in it to get rid of properties and they do not really care
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 32
to make money on it. They get their share from mortgages.
They want you to take bulk REO off their hands and sell it to
someone who will go in with a mortgage. So they waive
many costs associated with Bulk REO purchase.
All you have to do is pay on time what is asked of you.
Knowing that there is a great bulk REO sale going on but not
knowing where, how and who does not do you any good. To
score the best bulk REO discount, you have to be at the
right place at the right time. You must have money to buy.
And you must have connection that will lead you to the tape
where you can buy bulk REO at 90% off. In other words you
need access to nationwide REO property list.
There are few ways you can go about it but the best is to cut
search time by getting to people and organizations working
directly with banks that have access. Let’s face it no one will
advertise a great sale, because everyone and their mother
wants in on it.
When dealing directly with banks make sure you are well
prepared and all your bases covered. Do not go in blindly.
Many people make a mistake treating directly to a bank as
an information session. This is a mistake that could cost you
a nice bulk REO at a great discount. Have your paperwork,
information and money on the ready. When you go in
negotiating several million worth of bulk REO with a bank
they expect you to have the funds to make the purchase.
There is no try. It is do or do not. And considering the
money at stake I’d odds are you will go for a “do”.
While you can find a good deal on bulk REO, going directly
to the bank brings you the best discounts. Buy Bulk REO
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 33
directly and don’t let the chance pass you buy. After all
where else can you get a dollar for a penny?
Bulk REO Purchase Procedures
The main advantage of Bulk REO Purchase Procedures is the
lack of red tape slowing down mainstream real estate sales.
Bulk REO purchasing follows a simple, yet effective and well
outlined procedure, a go-between between the Buyer,
Escrow, Buyer’s bank and Broker of Records to obtain
required information and satisfy sale conditions. The goal of
purchase bulk REO procedure is to define the property, the
buyer, the seller, sale price and fund information. The
process requires completion and submission of Bank Letter,
Confidentiality and Non-Circumvention Agreement, General
Fee Agreement and Buyer Profile trough ten well defined
steps:
Step 1: Completing and transmitting of purchase bulk REO agreement. Buyer’s Mandate/Buyer sends a completed purchase bulk REO agreement to the Real Estate Company via email/fax/upload.
Step 2: Transfer of purchase bulk REO agreement to Escrow. The Real Estate Company transmits this purchase bulk REO agreement to Escrow and the Broker of Record.
Step 3: Based on the received purchase bulk REO
agreement Escrow quotes and transmits Buyer’s mandate/Buyer the request for a Bank Letter.
Step 4: Buyer’s bank transmits the Bank Letter to Escrow.
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 34
Step 5: Escrow Officer verifies the funds by contacting
Buyer’s bank and, conditional to positive results, notifies the Broker of Record.
Step 6: Broker of Record forwards the offer with the
bank proof of funds for purchase bulk REO agreement to the REO bank, who puts it into queue to be sold to the highest bidder.
Step 7: if Buyer’s bid is accepted, the selling REO Bank
takes the next step by:
o Sending the tape to the Seller’s Agent for delivery to the buyer
o Blocking the tape in the Buyer’s name for a 3 day period.
Step 8: Depending on the seller, the buyer is given an
exclusive 48 hour period to examine the tape and decide if he/she wants to proceed in performing his due
diligence. Buyer that wishes to precede wires a deposit to Escrow’s banking coordinates. Deposit, when received, continues to block the tape for the buyer’s benefit.
Step 9: To complete the sale by wiring Purchase Price
as stated to Escrow for the purchase bulk REO package
he/she has chosen, buyer has:
o (3) Banking days from the time he/she has wired the deposit for any order of $25 Million or less.
o (5) Banking days from the time he/she has wired the deposit for any order over $25 Million.
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 35
Step 10: As the last step of bulk REO sales, the Escrow
Officer arranges for Title Insurance, transfer documents, and all other forms necessary to close escrow. All payees must e-mail the Broker of Record their banking coordinates so their commission checks can be sent to them. Escrow closes and pays all concerned.
During proceedings Confidentiality and Non-Circumvention Agreement is singed and stamped by all parties. General Fee
Agreement is completed and validated. Depending on the agreement, Buyer irrevocably instructs Escrow to release a small percentage of the selling price, payable in equal amounts to the Buyer’s Mandate (where applicable), Seller’s Representative/Mandate (where applicable) and to Real Estate company involved. For selling price percentage of 3% this means 1% to each of the three parties involved.
Is it possible to back out of the deal? Yes, there is a
procedure that lets you back out gracefully. In cases where
a Buyer does not wish to proceed with property acquisition,
he/she are obliged to notify Escrow. Escrow will refund 90%
of the deposit, with the non-refundable 10% used to
liquidate damages. Following completion, bank makes the
REOs available to the next highest bidder. Escrow notifies
the Seller’s Representative, who in-turn notifies all payees,
should the transaction fail to close.
Simple, effective and precise - Bulk REO purchase procedure
is designed to ease the process and make all parties happy.
Bank gets the money, administration gets detailed
paperwork and real estate investor gets bulk REO hassle
free and in short order. No wonder so many real estate
investors are flocking down to purchase bulk REO.
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 36
What is a Wholesale Bulk REO Purchase Program?
Wholesale is the next level REO purchasing for experienced wholesale buyers. It is essentially going from dabbling with smallish REO packages to swimming with the sharks. As one of them. As intimidating as it may seem, wholesale bulk REO is really an easy to follow process. Wholesale Bulk REO takes advantage of a small window of time where REO properties are available for quick purchase in national and state pool runs before they are moved over to traditional liquidation programs. With wholesale bulk REO timing and acting fast is everything. Once the deal is gone, it is gone. Wholesale bulk REO is available trough proprietary inventory access from the top 50 banks, hedge funds, insurance inventories, and mortgage companies. With minimum order set to $10,000,000 to unlimited, the possibilities are endless. With something as great as wholesale bulk REO there are few requirements, representations, warranties and special instructions that must be followed.
To get a fast train to wholesale bulk REO, there are few requirements:
1 Signed Mutual Non-Circumvention/Non-Disclosure Agreement
2 Signed Buyer Profile Form 3 Signed Custom Purchase Order Form 4 Letter of Intent
5 Letter of Credibility/Credit Representations and Warranties for wholesale bulk REO include:
Portfolio and Order Profile:
o Assets are sold as is
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 37
o Acquisitions division will try to match the asset
pool with the Buyer’s Profile and Custom Order o Exceptions are minimal o Picking/ choosing not available o Property pools are formed from a single or more
asset providers.
Purchase Contracts
o Variable on case basis
Asset Representations:
o Fully foreclosed o No outstanding liens or encumbrances o Clear title commitment issuance at closing o Buyer foots other closing costs
Special instructions for wholesale bulk REO include:
For a Pre-Program, depending on a case:
o Complete Mutual Non-Circumvention/Non-Disclosure Agreement (One time only)
o Complete Buyer Profile Form (One time only) o Complete Custom Purchase Order Form (For each
order) o Submit Letter of Intent (See sample below: Must
be on buyer’s personal or Company Letter Head. It should include info from the profile, purchase order, exit strategy and future order intentions. Must be written in paragraph form)
o Submit Letter of Credibility/Credit - This is NOT Proof of Funds. Letter must be from a bank, mortgage broker, hard money lender, or attorney, stating the buyer can perform on the size of the portfolio the buyer is requesting.
Bulk REO Wealth Files: Insider Secrets
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com Page 38
o Have Proof of Funds available to provide directly
to the source
For Source:
o Source Contact o Source will contact the buyer. o Source works directly with the buyer, after Proof
of Fund and verification completed
Custom order placing Property list is given to the buyer Due diligence period is three to five days, depending on
source Properties are to be verified with source Closing involves working with Title Company
While wholesale bulk REO does require some effort and qualification, the discounts and profits generated well justify the little work needed. Anyone who’s in real estate investing
dreaming of making it big is well advised to take time and effort to explore wholesale bulk REO.