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Sam’s Club selling REOs now?

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Bulk REO Investing

Before you spend thousands on a Bulk REO course, click here (affiliate link) for Susan Lassiter-Lyon’s real-world info on flipping Bulk REOs. She’s the real deal.

Everybody is talking about Bulk REO Investing these days, thanks mostly to a product launch that we’re in the middle of.

And frankly, the idea of bulk-buying just makes sense. After all, it’s cheaper to buy potato chips at Sam’s Club than at 7-11…

What is “Bulk REO Investing” anyway? It all starts with this key component:

Buying “packages” of REO (bank-owned) properties directly from the banks or other institutions, usually at steep discounts. These packages can be just a few properties or they can be hundreds, and they sometimes come bundled with defaulted mortgage notes that may or may not be in foreclosure yet.

So what’s all the fuss about?

The “sexy” aspects of bulk REO buying are:

  • getting such steep discounts (although there may be a few “dogs” in any given package)
  • closing ONE transaction and picking up multiple properties (efficiency)
  • having multiple exit strategies for making a profit (flexibility). Once you own the properties, you can follow any one of the usual strategies: hold for rental cashflow, flip to another investor, sell to a retail buyer, etc.

There’s also the side benefit of being able to pick up defaulted notes from the same sources that sell bulk REOs, and note investing can be very profitable. (Hint: one of our advertisers is holding a Note Investor’s conference in November. See the ad at the top of this page for more info.)

Look, there’s no doubt that buying these packages in bulk is a highly profitable form of RE investing for the elite few who can fund these big deals. Hedge funds all over the country are falling all over each other to snap these deals up.

My question is whether there’s a play here for regular investors like you and me. Of course, one way into the game is to line up funding through a private lender or hedge fund partner. But as you might guess, breaking through to banks isn’t easy.

Another, much easier, way in is to buy directly from a bulk REO buyer. Even after his mark-up, you can probably find some very good deals that meet your investment criteria.

Then there’s the flip option. There are lots of ways to do this.

An example of successful flipping

For example, I know a guy who markets individual REOs and notes from “tapes” he gets from a big bulk buyer based in California, to end buyers. He then negotiates a finder’s fee separately or uses an option contract. What makes him successful is that the bulk buyers, a notoriously difficult company to work with, likes dealing with him because he can move a lot of product for them, and his buyers like that he does the legwork for them and only sends them product that meets their needs.

In short, he is successful because he has access to real product and can produce real end buyers. Brokers get bad names sometimes because they fail on the first count. Don’t make that mistake.

In the end, to make money from Bulk REOs, you must either BECOME a buyer yourself by coming to the table with big dollars behind you, or you need to partner with a bulk buyer who can flip you single properties, OR you can attempt to broker these big deals in whole or in part.

Our advice?

Before investing a lot of money learning about Bulk REO investing from anyone based on some internet hype, first get some straight talk about Bulk REOs from Susan Lassiter-Lyons. We believe that she’s got a no-nonsense approach and she has been showing people for years how to do this stuff. Click here for some great free info from Susan, and know that if you decide to upgrade to her paid course, it’s affordable (I think it’s $197 for a ton of training and we are an affiliate of her product).

Click here (our affiliate link) for Susan’s down-to-earth info on Bulk REOs

So what do you think about Bulk REOs? Leave a comment below…

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  • Robert

    I know nothing about “Bulk Buying” though it ‘sounds’ good, but if someone else can profit from selling their system from this or that they will. I’ve been flipping house’s for 7 years “successfully” now and “never paid” for anyone’s else advice on how to do this or that. Local Library, creative thinking and good contract’s will do it for you every time. Pay for others thought’s and advice? NO! I can ask the correct questions of the correct people
    and find what I need every time. Information is FREE

  • http://www.webuyforeclosures911.com Gabriel Forero

    I have heard most of these homes are in cheaper markets, where you can retail as well as wholesale them. I haven’t looked into REO’s yet, I am still working on my short sale business. I do however think if you can find that reliable source and get your cash buyers in quickly, you can make tremendous profits. I also have a note business and would be interested to find out more at that conference, I will check out the link. thanks for the information,
    Gabriel Forero
    http://www.webuyforeclosures911.com

  • ig

    thanks

  • http://www.2tierbargainhomes.com Shepherdv Raphael

    This idea I think is great providing you have an exit strategy for those properties you bought
    in bulk. This avenue is great for an investor if they have access to private lenders. With
    those two problems taken care of there’s no doubt this wouldn’t be an outstanding venture to
    undertake. I would be proud to be a partner with some investor that we could work together and
    do some of the deals. I know how much this means to an investor that as the essential equipment
    to get the job completed. Looking to hear from you with some type of comment that is favorable.

    With Warm Regards,

    Shepherd

  • http://www.jamiepelaez.com Jamie Pelaez

    Great post, REOs and short sales are something I am looking to get in to. Susan’s course is definitely one of the cheaper ones I have seen. If it is as good as you say, then she is doing major service to many who don’t have a few grand to spend! I have a few other programs I was looking at and will compare and research before making a final choice.

    To the commenter Robert:

    Congratulations on your success while being self-taught for free.

    I am an online marketer. I spent my first 2 years as an online marketer doing exactly what you have done to learn about
    flipping houses. The only difference is Google was my library!

    I did it because I didn’t have the extra cash to buy some of the info products I wanted to.

    Let me tell you, it does not matter whether you get it for free or spend money, because time is money.

    From my personal experience having to dig and dig for the right and good free info took a lot of time, but I had to do it.

    If I would have had the cash, it would have been a wise investment on my time, money, education and business to buy a few courses that could have taught me the same things in way less time. I would not have had to do all the hunting and gathering and could have spent more time taking action and doing income producing activities.

    To this day, my business partner and I let people know, if you don’t have the money, they are going to have to spend more time learning and working their business.

    Guess what? It’s way cheaper to get an education in your industry and the industry I am in, than it is to get a college education and usually more profitable.

    Maybe you do not value your time Robert (I hope you do though!) and don’t feel your time is worth any monetary value or maybe you were like me and just did not have the money… However, if you do now, I encourage you to not be a wasteful when it comes to your time and sharpening your skills in your chosen path.

    Many blessings to you all!

    Skype me: jamie.pelaez

  • http://www.inconstruction.com STEVE YOUNG REAL ESTATE INVESTMENTS, LLC

    I would think that what Susan has to say would be beneficial in some or a lot of ways. However, Robert is right. Its through trial and error. If you are creative, ask a lot of questions as you go along, and pay attention by listening to those that know what you are trying to learn, you will eventually get it without paying a single dime for someone else’s opinion. In fact, that’s exactly what we’ve been doing; getting tremendously low prices on exceptional properties, which allows us to purchase two, three, and sometimes for units at once. Nevertheless, I’m always in favor of positive and progressive information.

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