A recent panel of residential and commercial experts discussing a variety of market-related activities concluded that bulk REO investing is hovering on the verge of something big[1]. The panel, which agreed that members would have expected large-scale REO liquidation prior to this point in time, believed that when loan modifications are exhausted, the current level of active bulk REO investors will simply not be able to handle the influx of REO property into the market. While this could be bad news in the form of the “flood” of shadow properties that experts have been predicting, it is good news in that banks and lenders, more than ever before, will be on the lookout for real estate investors with funds in hand that can help them deal with the deluge.
Some panelists went so far as to describe current bulk REO operations as “mini-bulk,” implying that the potential in this field in the near future is far greater than anything currently underway.
The shadow market and the predictions of a “flood” all sound pretty promising to me. Are you taking steps to get involved in bulk REO investing ahead of the game?
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[1] http://www.newoakcapital.com/market-outlook/identifying-the-deal-why-now-is-the-time-to-invest-in-distressed-758
See, here’s what I now know and believe about Kenny Rushings forthcoming bulk reo program: Kenny has a source for bulk reo’s that member’s of his group will be able to cherry-pick from and wholesale. Maybe that failed to impress some of you, so I’ll spell it out. Instead of searching for a legitimate source of a bulk reo tape and then embarrassing yourself asking to buy only certain properties off their tape, Kenny has someone who is doing this already with Kenny and will work with Kenny’s students in doing the same. That’s basically what Kenny said in sum and substance on his latest video. My guess is that we will have to find buyers before soliciting these properties and then use transactional funding to flip the deals, but we’d be doing multiple deals at once, and they would be great deals. Tell me anyone you know out there in guru land has anything like this that could potentially make real estate investing any easier. Of all the programs out there, not one that I know of is starting you out by giving you the seller and properties, which is THE most important part of the real estate investing game. I don’t know if I’ll be able to afford Kenny’s program when it comes out, but at some point I will make it my business to give it a try because this particular program certainly sounds like it’s worth the investment.
Good call in promoting this, Bryan.