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. 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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