There are more foreclosures in the United States right now than we have ever experienced before.  Yet well-funded http://realestate.BryanEllis.com”>investors in real estate are seizing upon this opening to profit from an profoundly profitable new opportunity.

The new opportunity is known as ‘Bulk REO Investing‘ or ‘REO Package Investing’ and it’s a huge opportunity.

Let’s take a moment to analyze the basics of this incredibly lucrative business.

Understanding of the foreclosure process is central to understanding Bulk REO investing.

When a home owner begins to miss payments on their mortgage, the lender begins to send late/overdue notices to the home owner.  Following a period of time determined by the lender, formal foreclosure proceedings begin.  The name for this period is ‘preforeclosure’.

Foreclosure is completed when the defaulted property is auctioned.  Ownership of the property is returned to the lender if the property is not sold at auction.  This property is then considered to be ‘Real Estate Owned’ by the lender, also known as an ‘REO’ property.

Lenders usually try to unload their REO properties at close to retail price by listing their REO’s with a real estate broker.  However, REO properties are now frequently sold for far less than their ‘book value’.  The trade-off is that the buyer must purchase multiple REO properties in each transaction.

Qualified real estate investors are increasingly finding once-in-a-lifetime opportunities in these REO packages.  The most successful Bulk REO Investors will have a well-respected source of funding for their transactions.  Some sources of funding for these transactions are:  personal funds, hard money lenders, commercial lenders and non-conventional sources such as private investors and hedge funds.  One excellent source of funding for Bulk REO Investment transactions can be found here:  Bulk REO Investment Training.




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