Bulk REO Buyers

In order for a real estate investor to be successful, they need to deal with real real estate buyers. This is especially true in the bulk REO market. The reason, wasting time with a daisy chain can be costly. A daisy chain is the term used in the REO market to refer to a group of people that want to be investors, but they aren’t. They don’t have any real connection to the seller of the bulk REO package. Real estate investing is not a game, there is a lot of money involved here and wasting time with people that are not or can’t deliver will cost you a lot of money.

If you are a bulk REO investor it is important that you learn how to distinguish genuine bulk REO buyers from the daisy chain. People who contact you and tell you that they know someone that has a bulk REO package for sale should be dealt with cautiously. While there are brokers that make a living at being the connection between bulk REO sellers and bulk REO buyers, there are also a lot of people out there who know someone, that knows someone, who knows someone else that might be interested in you buying your package.

When you are selling your bulk REO tape you want to try to deal with the buyer with the least amount of middle men as possible. The more direct relationship you have the smoother the deal will go for everyone. The more people that are involved in the bulk REO transaction the more you are going to pay. Why, because everyone wants their cut for making this transaction happen. Look, if you are serious about making money in the REO industry you need to be the one that has the properties to sell or be the person that truly wants to be a bulk REO buyer.

Do your homework, if you are dealing with a bank, call the bank. Do what you can to create a direct contact there. Removing the daisy chain actually makes buying and selling bulk REOs easier and more profitable. Think about it like this. Let’s say that you are the actual seller. You know that there is an interested buyer because your friend or your broker told you there was. They submit an offer, by the time that offer gets to you it has already been adjusted to accommodate the money the broker wants to make. The more people involved the higher the sale price, not the price you will get for selling the bulk REO package, but the price the investor or bulk REO buyer has to pay to acquire the property.

To make the transaction go as smoothly as possible, limit the number of people that are involved. You don’t want to scare off a genuine bulk REO buyer by inflated prices that are created to cover the commission of everyone involved. You also don’t want to waste time with a buyer that has no intention of buying your package and refuse buyers that were genuinely interested in buying your bulk REO package.

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