What the heck are “BULK REO SALES” & why would I care?

One of the big keys to success for many in the Default Servicing world, the polite term for foreclosed properties, is Bulk REO, (Real Estate Owned), business. Bulk sales have always been around but are now expected to play an even larger part in the market than ever before. In today’s Default Servicing world where lender’s and investors – such as Fannie Mae and Freddie Mac – are looking a staggering numbers of REO’s. Bulk sales to investors are seen as one of the quickest most efficient ways to get properties off the books and cash into the lender’s hands with the least amount of trouble.

Most REALTORS are just not familiar enough with the idea, let alone the process, to help their client participate in Bulk Sales.

Bulk Sales can be put together in packages with as few as six properties. The key is to learn how to get direct with the sellers of assets. Most folks haven't a clue as to how to find sellers let alone how to work with them.

Typically the negotiations in Bulk Sales revolve around the number and location of the properties. Let’s be clear working the Bulk Sale business is not for the faint of heart. These are the properties that lenders are least interested in managing and liquidating. Bulk Sales are cash on the barrel-head no refunds, excuses or problems basis and if you don’t like it once you bought it too bad.

All that being said there is tremendous opportunity for profit.

 There are two basic paths purchasers use when looking at Bulk Sales: buy rehabilitate and hold or buy rehabilitate and flip. Totally up to the purchaser of the package; either plan can be tremendously profitable; either can be tremendously risky; the seller really doesn’t care.

Defaulted properties, REO’s, have been a big part of Dick Thackston’s business since the S&L Crisis of the early 1990′s and Bulk Sales are likely to have a bigger impact than ever before on real property values in the region – in many cases Bulk Sales will even improve values in towns by drying up excess inventory. Dick works with the other 34 New Hampshire, Vermont & Massachusetts agents in his 3 offices helping investors’ liquidate and buyers find REO properties.

Helping you in negotiations for Bulk Sales is just one of the ways Dick Thackston and his team can help you when they help you buy a Lender owned – REO property.  To see all the homes on the market today in New Hampshire, Vermont & Massachusetts visit www.dickthackston.com or give him a call today at 603.283.0622.