REO 30-40% Discount Bulk. Need Buyers
REO inventory holdings by banks are soaring. The melt down of the lending industry and crash of the housing market provide an exceptional opportunity for you to flip bank owned homes.
Must purchase between 10-500million worth. If anyone has any connects to purchase, get back with me!!
How many do I have to buy?
there is if you do what I suggested in the thread Nationwide REO Broker.
get 10 people together that have 500K each. the problem is coordinatng the needs and wants of the 10 people.
10 people in 10 different parts of the country could make the ideal combination to break up one of these packages. Problem is getting the right group together- for one thing, this is getting into REIT land which requires a substantial initial investment to set up. It would be a real gamble to be the one to put out that initial effort, and the greater returns that person would justifiably expect will create problems with the other investors.
Chris
I say REIT because soliciting the general public for investors to do a deal without SEC approval is illegal. If you have people in your circle of friends or friends of friends who can pull together the money, then you could sell off the properties individually in the usual manner, but buying a package together is a different animal.
Chris
My point is you would need to set up an entity recognized and approved by the SEC to promote real estate investments. An REIT is typically how this has been done.
Chris
Broderick, if you still have access to these properties, get back with me. However, there can be no broker chains. You must be direct.
have buyer. what is your %FMV for packages in the lower ranges of 10-20M?
When it work this is how it goes.
You find broker who has connection to bank, fund, trader
you give them the specs e.g. san diego cty, sfr, light rehab, 60-65/100
They get the buyer, buyers mandate (usually a BS term), etc. on the phone
you proof-up (so that you have the fund)
due diligence
and the deal goes down atty-atty or thru escrow
you now own the houses
the problem the number of people in the middle. I was sent a fee agreement for some that was "direct to the buyer" and there were 8 broker/consultants in the middle.
I have purchasers between 2-10million and more for props in Riverside/San Bernardino/Orange in Cal and Las Vegas.