Bulk Real Estate Portfolios are Homes that have been foreclosed upon and owned by the bank. When A bank sells these homes one at a time through a Listing Agent or Broker the Home is listed as a REO or Real Estate Owned property.

Larger investors go to the Banks and look to purchase these homes at significant discounts. Homes that are being liquidated in the manner by the Banks can go as low as 10 Cents on a Dollar in areas such as Michigan and Ohio and as much as 80 Cents on a Dollar in places like Southern California.

This market is truly about buying in bulk and getting discounted prices but also making the right contacts on both the buyer ans seller side. You can start with a $1,000,000 purchase and all the way up to Billions of dollars of assets. Unfortunately there is a lot of investor fraud going on in this market. Buyers are getting false proof of funds letter from unethical title companies and on the internet. The same people that are fraudulently getting false proof of funds are acting as Sellers to other buyers and simply trying to flip a large deal to the end Buyer. The problem is that when the end Buyer Backs away from the deal the Buyer that has committed fraud can not purchase the properties and the bank is stuck holding the properties.

Banks have become very careful now and they are getting more strict about the verification process of the buyers they contract with. In most cases the Bank will require a letter from the Bank on their letterhead signed by the Bank Officer. The Selling Bank will then look up the Bank on the Business listing and verify the phone number and call that bank to verify the letter.

Once this has been verified the Asset list or Bulk Portfolio list is released to the Buyer and they have a couple of days to review the assets and decide if they would like to contract or pass on the portfolio. If they want to contract they must sign the appropriate documents and put down a large escrow deposit to seal the contract.

The main problem in the transactions is that the Banks do not have the resources to handle all the inquiries about these portfolios so they outsource this to companies that liquidate the assets. When these companies are not the bank the Buyers get nervous that they are not the real seller and are reluctant to provide POF. The liquidation company can not get the list from the Bank without proving that they have a real Buyer. So a stand off ensues. The Agents and Brokers involved need to work to build trust and a relationship to get the seller and the buyer to work toward their mutual benefit.

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Real  Estate Portfolios  |  Real Estate Investing  |  Short Sales |  Foreclosed Homes