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BULK REO
WEALTH FILES
INSIDER SECRETS
Ultimate Bulk REO Secrets Copyright 2010 © Mark B. Bradley
www.UltimateBulkREOSecrets.com
NOTICE: You Do NOT Have the Right to Reprint
or Resell this Report!
You Also MAY NOT Give Away,
Sell or Share the Content Herein
© Copyright Mark B. Bradley 20010 All Rights Reserved
ALL RIGHTS RESERVED. No part of this report may be reproduced or transmitted
in any form whatsoever, electronic, or mechanical, including photocopying,
recording, or by any informational storage or retrieval system without express
written, dated and signed permission from the author.
DISCLAIMER AND/OR LEGAL NOTICES:
The information presented herein represents the view of the author as of the date
of publication. Because of the rate with which conditions change, the author
reserves the right to alter and update his opinion based on the new conditions. The
report is for informational purposes only. While every attempt has been made to
verify the information provided in this report, neither the author nor his
affiliates/partners assume any responsibility for errors, inaccuracies or omissions.
Any slights of people or organizations are unintentional. If advice concerning legal
or related matters is needed, the services of a fully qualified professional should be
sought. This report is not intended for use as a source of legal or accounting advice.
You should be aware of any laws which govern business transactions or other
business practices in your country and state. Any reference to any person or
business whether living or dead is purely coincidental.
Bulk REO Wealth Files: Insider Secrets
Get the Ultimate Bulk REO Secrets Program:
http://www.ultimatebulkreosecrets.com/order/
Page 3
Table of Contents
Bulk REO: The Recession Money Maker………………….……………8
Why it is a good time to buy Bank owned properties?……….….……….……11
Foreclosures and Bank Owned REOs……..……………………..…………..........14
History of foreclosures and Bank REOs 1930’s ……………………………….…16
Resolution Trust and foreclosures in the 1980’s ………………………….19
7 reasons to buy bulk reo properties ………………………………………..21
Why buy bank owned REOs instead of short sales ………………………….24
The difference between non performing loans and REO …………..……….26
What is a BPO? Brokers Price opinion?..............................................…28
Top 35 List of REO banks with REOs to sell………………………….…………33
Why Bulk REO investing is a great investment strategy ……….…………..37
Make $100,000 on your next Bulk REO Purchase Keyword …….…………41
Buy Bulk REOS from 40% to 91% discount ………………………………….…44
Bulk REO Purchase Procedures …………..………………………………………..46
What is a Wholesale Bulk REO Purchase Program?............................…48
Page 4
About The Author
Mark B. Bradley
Mark B. Bradley is a leading real estate
investor and marketing consultant.
Mark started out in the Engineer Planning
Division of MacDonnell Douglas Aircraft Company. As a liaison between
aircraft test pilots and the engineers, in the flight simulation department. He
worked with computer technology helping the engineers, pilots, and planners
communicate with the high tech systems of flight simulation. After that he
took his expertise into investment real estate.
He has more than 20 years of real estate investing experience. Mark went on
to own four multi-million dollar apartment complexes. A high-rise luxury
condominium building, Two Town Homes in Vail Colorado, and a beautiful 11
acre mini-ranch over-looking the Majestic Eagle River in Colorado.
Plus may other entrepreneurial ventures.
Mark’s latest project is to pass on years of closely held secrets of successful
real estate investors and how to use bulk REO investing strategies in the
post real estate crash years.
Page 5
The Wave Begins To Build
It seemed to be a good morning the young real estate investor stood in the
flesh in front of the mirror. No wispy spirit, this was a man in the flesh, bone,
muscle, and brain. The morning light shined in his eyes and his eyes shined
back.
The man swore; "This is the day it all makes sense! All the hard work is going to
pay off!"
His mind wandered as he tied his tie. I'm getting rid of this sport coat!
Something much more stylish fits me. Maybe a long overdue vacation, back to
Colorado he thought. Still day dreaming on the way to work. Maybe I'll get a
new car? But I'm keeping this Toyota!
The phone rang a voice on the other end said. I'm terribly sorry to call so early
but I just wanted to let you know I can't meet you today. This is quite
embarrassing and I don't know how to say this but.... I met with a lawyer over
the weekend. and, we'll, I'm filing for bankruptcy so I can't go ahead with the
Short Sale. I'm sorry but my attorney assures it's the right thing to do.
The man hung up the phone and pulled over
to the side of the road. His head sunk into his
hands. "Boy what you going to do
now?" he disclosed.
"It can take up to 1 year or more to do just one
short sale deal." And that's if the planets are
in-line”
In the last few years it can sometimes feel like you are Indiana Jones searching
for some lost antique treasure. Only for many of us its searching for "The
American Dream" As soon as you start getting close you find out "Darn"
"Bum information"
Then you get to back track and get back on the trail. Make things solid again.
That was me three years ago. I had spent thousands of dollars learning how to
hunt down short sales. That when I found out:
"Just like Edison finding out one more way not to make a light
bulb. All my work was not in vein because luckily for me I had
something to go to."
Page 6
Back in 1991 I bought my 1st REO (Real Estate Owned By Banks) a 24 Unit
Apartment Building From a bank. This was the beginning of a two year buying
spree where I bought 3 multi-million dollar apartment properties form banks.
“This was at the end of the Savings and Loans Crash of the 1980's
Looking back, I should have stayed with buying bank owned
REOs. But, like all good things, the market recovered and all those
good deals got sold off.”
What I went back to is buying REO properties from banks and lenders at
deeply discounted prices. I found out that quickly after I contacted these
banks they would ask: "How many house do you want to buy?" I'll send
you the tape.
I was just looking to cherry pick one or two houses and salvage some of what I
learned taking all those Short Sale classes. Just a few weeks before it was
taking me a month or more to bring in short sale leads and even more time
finding the right properties to invest in.
But now I was getting these tapes with hundreds of houses that I was
encouraged to make a bid on the packages.
Talk About A Reality Shift.
Instead of looking for the sellers of short sales one by one. Banks were calling
me and sending me updates on hundreds of properties. They were chasing me
now!
Don't let the word BULK REO scare you. Everything I teach can work for you
even if you only want to buy one house for as low as five cents on the
dollar and avoid all the hassles of doing a short sale.
. Please leave comments on the post. I'm a
real person and I'll get back to your questions
and comments as fast as humanly possible.
Over to the right are different categories with
articles and videos for you.
“This got me into the
Bulk REO Business.
And I now teach people
the Bulk REO Business”
I worked hard on putting all this content
together and if you feel it has value please share this with your friends on
twitter, and Facebook.
Page 7
This is for you if you are: Unhappy
with your current business?
Best Of Success!
Mark B. Bradley
St Louis MO USA
[email protected]
Bulk REO: The Recession
Money Maker
* Looking for one that will capitalize on
current down market conditions and make you
rich… No matter what you status or
experience.
* Looking for a fast way to get out of debt and
create the perfect real estate business you’re
your family. (One with cash flow, equity
building and tax protection!)
* If you have ever wanted to make huge piles
of money with real estate but never quite
pulled the “trigger” (Learn the simple step by
step methods “Take Down” big and small deals
everyday!)
* If you want to make A Fortune in 2nd
Coming of the Government Caused Real
Estate Crises. (Follow these proven tactics and
keep reading this letter for more details.)
* Or maybe you were waiting for the right
opportunity to come knocking on your door.
This is that amazing opportunity for those few
people who realize we are in the right place at
the right time… …”And that time is now!”…
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
Page 8
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 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.
Page 9
Short Sale Facts They Have Been Hiding From You
You can be locked out of a short sale deal at the very
last minute.
Some deals can take 1 year or more to complete the purchase
of just one house. Don't let this happen to you.
There are 5 steps you must complete to get a short sale done.
Miss any of these 5 steps and you must start over from
scratch.
"There is a better way"
Buy direct from the bank! Better yet, buy in bulk. These
Bulk REO deals can get you properties for pennies on the
dollar. You must find out how to do this for yourself.
Imagine going through your day knowing that you have
the knowledge to produce mass wealth for yourself and
your family. Feeling good all day long.
► What are the 4 Best Ways to Make $Money$ With
Bulk REO Properties — and once you know these easyto-start methods can jumpstart your success.
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 heartsmoney.
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.
► How industry insiders create an Own REO Business!
(The “Step-By-Step” blueprint that is revealed to you for
you to follow.)
► You will quickly be able to focuses on: Cash Flow
Creation, Equity Building, Tax Advantages, Long Term
Appreciation. These are the “4-Corner-Stones” of your
business!
Page 10
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 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
Page 11
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.
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!
Page 12
Bank Repossessions Ramp Up! Lenders Brace For
Huge Backlog
U.S. lenders repossessed homes at a record pace in
May, although foreclosure activity slowed slightly as
lenders tackled the backlog of distressed properties that
are already in the system.
However, a sustained turnaround in the pace of failing
loans will be elusive without a meaningful
improvement in the job market, real estate data
company RealtyTrac says. Banks took control of
93,777 properties in May, a record, topping the prior
record in April by 1% and spiking 44% from a year
earlier.
Every state saw more bank repossessions than a
year ago.
It remains to be seen whether "we may be at a point
where most of the damage has already been done and
it's just a question of working through the wreckage
before we come to a full recovery, as opposed to the pipeline continuing to get fuller and fuller.
Default and auction notices fell in May, but had soared 28% in 2008 and 32% in 2009 to create a
stockpile of delayed bank repossessions. Loan modifications just put off inevitable foreclosure
for many borrowers.
"Lenders appear to be ramping up the pace of completing those forestalled foreclosures even
while the inflow of delinquencies into the foreclosure process has slowed," RealtyTrac's CEO
James J. Saccacio said in a statement.
Fewer defaults and auctions will help lenders better manage the record number of homes they
need to take over and resell. There are 5.5 million seriously delinquent loans still in the system,
RealtyTrac says.
"Best-case scenario is you're still looking at about another three years to work through the
inventory that's already in the pipeline of distressed properties," Sharga said.
The overhang of foreclosures will keep prices from rebounding much over the next two to three
years, most industry experts agree.
Page 13
“Banks will continue to Cut Deep, Deep Discount Deals with investors who can take multiple
properties off their hands in one deal. These "Bulk REO Deals" are the fastest way for banks
to return to profitability. “
Many smart investors are positioning their selves to Buy Bulk REO Properties for the
greatest profit potential in this down market. More reveled in the article on this page...
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 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
Page 14
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 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.
Page 15
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 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,
Page 16
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 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.
Page 17
"With
the wave of his hand and one stroke of his pen.
When the program ended May 31, 2010 home values fell by you guesses it
$8,000 or more."
* The thing is people don’t like that! People want peace and prosperity! Not
hand outs and government housing.
* Americans don’t want to be told where
they can live or not live. How big their house
should be .
* We especially don’t want the government
controlling our thermostats and telling us
what kind of cars to drive.
The president lost $1
trillion dollars of you the
American home owner’s
money giving an $8,000
tax break to 1st time
home buyers.
* Americans have spirit! And this
entrepreneur sprit is want is going to defeat and fix this Government Caused
Real Estate Disaster.
* People all over this great country of ours are waking up to this crises
Orchestrated by the Parasitic Elite Class.
You can't stop the government from doing this -- but you can discover how to
be "On The Inside" and profit from these policies...
Page 18
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 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), NSeries and S-Series Mortgage Trusts, Land Fund and JDC
Program. When initial unsuccessful attempts to capitalize on the
Page 19
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.
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…
Page 20
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 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
Page 21
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
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
Page 22
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.
Foreclosures of the Rich and Famous.
People who bought some of the most expensive homes in America now are far
more likely to be behind on their mortgages than are ordinary Joes–though the
ordinary Joes aren’t doing very well either in that department.
"These million dollar homes are a growing number of Bank REO Properties" How
would you like to buy one of these million dollar homes for pennies on the dollar?
To find out watch the videos and read the article...
► Make $997,352 in equity “literally overnight” in this extended real estate
crises. (And make plenty of cash flow to pay all your monthly expenses!)
► Buy quality income and cash producing real estate for as little as 5 cents on
the dollar. (Yes this is shockingly easy!)
Page 23
► Discover how to: Instantly buy property at wholesale prices and sell for
retail like the professionals do. (So simple, the 1st time you try it you will be
hooked!)
► The amazing “Bulk REO Quick 3-Step Shortcut” to pocketing $50,000 cold
hard cash from your first deal. (This simple method requires no property
management skills.)
► Quickly turn one successful deal into another. (Repeat this simple step until
you are overjoyed with your income.)
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 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
Page 24
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 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?
Page 25
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 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
Page 26
letter. The third the gavel comes down – the property has been
declared a non-performing loan. For all intents and purposes nonperforming 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. 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 rigmarole non-performing
loan.
Page 27
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
 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:
Page 28
 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:











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
Page 29
 Interior damage photos
 Repair estimate if applicable
 Cleaning estimate
Internal BPO may also include taking care of:







Lock rekeying
Winterization.
Trash removal
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 winwin 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.
Banks Are Bracing for a Tsunami Of REO Properties
That They Will Own!
Page 30
According to RealtyTrac.com, as of June 16 there were 9,054 Queens’s
residences which the banks had placed into default since the middle of
February 2009. Of these, 2,550 have been in default for more than a
year. None has been foreclosed by the banks yet. Every one of these
owners who is occupying the property has been living basically rent-free
since stopping the mortgage payment.
More than 4,000 of these homes have outstanding mortgage debts in
excess of $400,000. Over 2,500 have mortgage liens of more than
$500,000.
When RealtyTrac is unable to obtain the outstanding mortgage debt
figure, it lists the amount for which the owner is in arrears. Here is the
real shocker. More than 3,500 properties have arrearages listed, some
as high as $100,000. Roughly 280 of these owners owe anywhere from
$25,000 to $100,000 in delinquent mortgage payments. Those with
arrearages of roughly $100,000 have not paid a cent to the lender in
about three years.
Banks will be desperate to unload these properties in a big way...
Nice deal isn't it? Let's not feel too sorry for these poor folks.
Page 31
Without a doubt, the word has spread throughout Queens that the banks are not
foreclosing on owners who stop making mortgage payments. It is not very
surprising, then, that an incredible 11.2% of all borrowers are now delinquent in
their payments by 60 days or more. This figure comes from Trans Union, the
credit-reporting firm, which puts out a quarterly mortgage delinquency study
based on a database of 27 million anonymous credit reports. That is up from only
7.2% a year earlier.
Find out what you need to do today to make a huge amount of money from
these bank owned REO properties...
How many delinquent owners are we talking about? The borough has roughly
250,000 single-family homes and another 240,000 units in 2-4 family houses
owned by investors. Even assuming that roughly 1/3 of these owners are
mortgage-free, at least 25,000 properties are seriously delinquent now.
"The banks must sell these distresses properties in "BULK" you can get the
very best deals sometimes for as low as 5 Cents on the dollar if you only take
the time to learn to get the banks to offer you these deals"...
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
Page 32
3. BB&T
 URL: BB&T© Bank Owned
4. Citibank
 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
Page 33
 URL: Home Loan Bank Owned
13. HSBC
 URL: HSBC Bank Owned
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
Page 34
22. Lenders Asset Management
 URL: Lenders Asset Management
23. M&T Bank
 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
Page 35
31. Regions Bank
URL: Regions Bank Owned
32. Zions Bank
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.
Page 36
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 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.
Page 37
REO's Are Exploding In Affluent Areas All
Across The Country
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
realistic goals.
Scottsdale Foreclosure Map
This big blob of green is a map of foreclosures for sale
and pre-foreclosures (potential short sales) in Scottsdale
and Paradise Valley. If you think the bottom of the real
estate market is here, think again.
Remember, these are places that are still for sale — this
map doesn’t count foreclosures that have already sold,
or those on the way. With mortgage payments late or
foreclosure underway in more than 1/10th of the houses
in the country, and the Scottsdale/Phoenix market worse
than the nation overall, you can bet home prices have a
long way down to go.
This trend is likely to continue as the real estate market
limps along for the next two to five years banks and
lenders will be looking for investors to buy these REOs.
sets
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.
 Good
reputation
reels the money in.
We all have to start
somewhere. Same with
Page 38
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.
Page 39
Hedge Funds and Savvy Investors Buying Bulk REOs
Some of the savviest investors on Wall
Street, including some who made billions
on the housing bust, now are snapping up
barren plots of land in places like Las
Vegas and Phoenix.
Hedge fund Paulson & Co., which made a
fortune wagering that the housing market
was overvalued three years ago, is now
making a bet that land is undervalued and
that it can profit from reselling lots to
home builders. The firm is bidding on some 8,000 residential lots in Arizona,
Colorado and Nevada owned by home builder Tousa Inc., according to people
familiar with the matter.
Smart lenders will be looking for conservative lending practices to loan money
in this recovery period. One’s that are safe investments with little collateral risk.
Why you should be approaching Commercial Banks — for both financing and
for finding REO properties.
Start finding banks and lenders in your area that have fantastic deals waiting
for you. Get the course on Ultimate Bulk REO Secrets to get started.
Make $100,000 on your next Bulk REO Purchase
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.
Page 40
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
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
Page 41
 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?
More?
One percent? Three percent?
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
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
Page 42
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 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.
Page 43
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 directly and
don’t let the chance pass you buy. After all where else can you
get a dollar for a penny?
Page 44
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.
 Step 5: Escrow Officer verifies the funds by contacting
Buyer’s bank and, conditional to positive results, notifies the
Broker of Record.
Page 45
 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.
 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.
Page 46
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.
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
Page 47
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
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
Page 48
o Variable on case basis
 Asset Representations:
o
o
o
o
Fully foreclosed
No outstanding liens or encumbrances
Clear title commitment issuance at closing
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.
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
Page 49
 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.
So what can you do now to get started in Bulk REO
Investing?
Best Of Success!
Mark B. Bradley
St Louis MO USA
If you have any questions here’s my personal email
address. Shoot me a line.
[email protected]
P.S. Send me success stories too!
Page 50

Bulk REO - Amazon Web Services

Transcription

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