Bulk REO Investing The Easy Way

There are more foreclosures in the United States right now than we have ever experienced before. Yet as always, this challenge has given rise to a huge new opportunity for alert real estate investors. 

That opportunity is called Bulk REO Investing, and the opportunity is huge. 

The basis of the Bulk REO business is foreclosures, so let's analyze the foreclosure process now. 

Understanding the notion of Bulk REO's requires understanding of the foreclosure process. 

A home owner who misses one or more mortgage payments is faced with an ever-increasing volume of threatening correspondence from their lender. The lender directs the subsequent timing of the actual foreclosure proceedings. Between the formal beginning of the foreclosure process and the public auction is the 'preforeclosure' period. 

Foreclosure is completed when the property is put up for auction. If the property is not purchased at auction, ownership reverts to the original lender. This property is then considered to be 'Real Estate Owned' by the lender, also known as an 'REO' property. 

REO properties are usually listed for sale with local real estate agents. Yet with increasing frequency, REO properties are being sold for pennies or dimes on the dollar. The trade-off is that the buyer must purchase multiple REO properties in each transaction. 

There is huge profit potential in these REO packages for qualified real estate investors. REO packages are easiest to buy and sell with a well regarded source of financing in place. There are many sources of funding for these transactions including: hard money and commercial financing, as well as non conventional sources such as hedge funds and private investors.