Bulk REO Investments – A Quick and Informative Guide to a Lucrative Industry

Bulk REO Investments – A Quick and Informative Guide to a Lucrative Industry

In this economy, with the current housing market the way it is, getting into real estate investing is a daunting proposition for possible investors and entrepreneurs. After all, part of the reason the economy is in the condition it is today and has been for the past two years is a direct consequence of the monumental collapse in the housing market in 2007 and 2008. Thousands of investors and entrepreneurs lost billions of dollars worth of real estate investments, and millions have either foreclosed on their homes or are in the time of action.

The facts of the situation may seem a bit frightening to an investor, but they truly represent opportunity – opportunity for a bold investor in the form of bulk REO.

What is Bulk REO?

Bulk REO investing (the ‘REO’ stands for ‘real estate owned’) basically involves buying and selling bundles of REO similarities as a package, instead of each character as an individual entity. First, though, it may be helpful to understand what REO investing is before diving into bulk transactions.

REO – or real estate owned – is a character that remains unsold after going by a foreclosure auction. It is owned by a bank or the mortgage company, whichever entity holds the mortgage to the character. These similarities may frequently be in a state of disrepair, but this can be an advantage to an investor who wants a cheap character. And by all measurements, these similarities often are cheap, since they are often sold for less than what the mortgage is worth.

Bulk real estate owned investing involves taking these similarities and buying them from the bank in bulk groupings of similarities called bulk REO tapes, and then selling them as a group to interested entities for profit.

Why Bulk REO?

Buying and selling bulk Real estate owned similarities is an option for many investors because of the comparatively large return on investment that can be realized. The spread – or difference between the buying price and selling price – is often upwards of $50,000, and can very well reach into six digits on a regular basis. This is in direct contrast to individual REO similarities that may consequence in a small spread after maintenance and other costs are considered.

As you can see, selling REO by the bulk is a promising enterprise – but becoming a bulk REO trader is not without its risks. While you can usually get into regular REO sales with your own capital, being a bulk REO trader requires having access to large amounts of funds, since you are dealing with multiple similarities at once.

As a consequence, access is fairly limited to those who can acquire funding. However, the possibilities are definitely there, since there are plenty of venture capitalists, hedge funds, and other large investment groups willing to fund a bulk REO investor. The trick is learning how to participate in the time of action and get the training required to become knowledgeable about the industry and how it operates.

consequently, those interested in bulk REO should undergo training and instruction by experts to learn how to break into this field and succeed.

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