I have two recommendations for you in terms of fairly safe ways to profit from real estate investing in 2009. First, a brief note about what’s happening today:
The stock market is up in a big way today, and I think the underlying reason is interesting.
Today, Wells Fargo announced huge profits for the first quarter. This was unexpected and is apparently due nearly entirely to a huge amount of mortgage originations that Wells completed in the first quarter.
It seems that this could be interpreted in one of two ways:
- The real estate market is *not* improving, and Wells’ profit situation is due to their competitive success
- The real estate market is expanding and recovering, and all the profits at Wells Fargo is one example of that
We don’t know which of those explanations is the correct one, but it appears that the wizards of the stock market (whoever they are) have decided that #2 – a real estate recovery – may be under way. The evidence for this is that all of the major banks (including Wells, JP Morgan, Bank of America, etc) are up quite significantly today, suggesting that a lot of people think the financial results for the first quarter will be broadly better in the banking business than previously expected.
So there’s a positive bit of news for today!
Also – I suspect there might be two good ways to make some money in real estate this year:
- REIT’s – a REIT (real estate investment trust) is like a mutual fund that invests exclusively in real estate and passes the income back through to the owners of the REIT. REIT’s are traded on the stock exchange just like regular stocks. If you’re interested in REIT’s, be sure to check them out very thoroughly, as I expect there will be a massive amount of consolidation as the bigger, healthier REITs gobble up the smaller, sicklier ones at discount prices. This will make for some huge profit opportunities.
- Bulk REO Investing – I’ve been banging the drum on this for several months now. This involves buying GROUPS of foreclosed properties from lenders at a heavily discounted price. (Yes it’s possible to do this even if you don’t have a lot of money yourself…read on.) Bulk REO investing won’t be a big deal for very long, but it certainly is right now. If you’d like some serious training about this – including how to get access to significant funding for your own deals – leave a comment in the box below and let me know.
Thanks for reading RealEstate.BryanEllis.com, and as always your thoughts and comments are welcomed!
Another possibility is that with interest rates so low, many people are currently refinancing their existing loans at a lower rate. If you ask mortgage brokers, they will tell you that refinancing is approximately 72% of their business today. Until people start purchasing the excess inventory of homes on the market you will not start to see an improvement in the housing market.
Entirely possible, though the news today is about originations, not refi’s – at least from what I’ve seen. Correct me if I’m wrong. — Bryan Ellis
Your tease about REIT’s and bulk REO purchases sound interesting. Who accepts funds for the REIT’s? And, how does a small company like mind get the business line of credit (less than 2 yrs but 767 score) to make such a purchase?.
yes, I would love to see another bulk reo training with your friend.
Def more info on REIT’s and Bulk REO investing.. thanks !
I agree with Bryan with regards to more refi or purchases. I have a mortgage business and I am doing more purchase business especially for the first time homebuyer. As for my refi clients I try to do a loan mod first if there is no equity or if they owe more than what their home is worth. If there is equity of course I do a rate and term if it makes sense. But in most cases I will negotiate with their bank for a lower rate. It saves my clients thousands of dollars..
Hi Bryan,
I have been trying to buy a bulk REO package. I would like to have more information about the trainining you mention.
Many thanks!
Mauricio
Yes I need this information. I came across investors daily who want to buy bulk. I need to know how to get them what they want.
I need to know how I can get the funding for bulk reos. I have good leads.
I would like to hear about the bulk REO packages you mentioned. Thanks…Gary
I would like to learn more about your funding options for bulk sales. Also, do you provide transactional funding for short sales?
Definitely interested in bulk reo’s.
Let me know how I can get funding for the bulk REO’s. Can I get from HSA ( Home Seller Assist). By the way great info.
Bryan,
Count me in for any training or info on the bulk REO program and funding.
Are there still spots available with Sal?
Thanks.
Jeff
Hey Brian,
Did you confirm how the New York buyers are buying right now? Seller financing only?
Some people say with the new Fed program requiring investors (hedge funds) to put up only 7% of a (heavily discounted) deal in equity, 7% from the Fed and 86% mortgage guaranteed by the Fed that bulk REO’s/NPA’s will be going away soon. Perhaps that”s true for the large lenders, but what about the small guys that don’t want to party with Sheila and Ben? What do you think?
All the best,
Byron
Count me in. I’m ready to make some calls and put this together with the proper resources. Thanks.
Oh NO! Thats bad news….for me. My R/E Business depends on a lack of available financing for borrowers and a difficult market to sell a home in. Aww shucks. A turn around would mean I’d have to go back to the old fashioned way of buying and selling houses. Oh well, OK then.
Hey , B.E. shoot me the info on bulk REO’s too K?
I’d like to beleive the market has turned, but I have not seen it personally. Only the extreme bargains seem to be moving.
I agree with Jennifer’s assesment that the refi business is booming and that is probably where Wells Fargo is getting it’s $’s.
I’ve rad some on bulk REO investing and want to learn more. Send me some information on your “serious training”.
Thanks for all the great communication and up to date info.
D C
Bryan-
Can you contact me about the bulk REO investing? I would definitley be in. Thanks. Kris
One buyer of Bulk REO’s, will pay you a fee for Bulk REO information.
I would like the training for this. Also please let me know how I can buy the Viral software for Viral marketing.
I’d like more information on bulk REO training.
Check out http://www.BulkREO.net and enjoy! — Bryan Ellis
Hi Bryan,
Are you still offering training on bulk reos? If so, i would like to check it out. Thanks Ken Roberts. Great info on blog too!
Yes, we are still offering Bulk REO Investing training. You can check it out here: http://www.BulkREO.net
more info. on bulk REO investing
I have an interest in bulk reo’s please forward info to me on how I can get involved in this area even if I lack the funding, maybe I can build capital by working with other investors who need help in this area for a piece of the action, or any other way I am not aware of that I can break into this area, have an interest in multifamily properties.
thanks…edwin