Bulk. In the way of fiber – it means more than a little – bloat – big – favorite phrases where I have used bulk are, “I am bulking up”, “Whew, that’s going to cause some bulk”, and my all time favorite, “My bulk, where did you go?” 🙂
However, we are not talking about me – we are talking about bulk sales are they are applicable to the real estate owned inventory that is present with the banks.
In the beginning of this current “having declined” real estate market, I was called frequently by the “novice and savvy” real estate investors. They knew that both Paris and I were tasked (in a pleasure filled way), in the selling of REO’s for a major bank.
While back in the day, that was incredible and there was a lot of REO inventory to sell for the bank, times have changed and we may only get one REO to sell, every so often.
Even the bank that has trusted our Paris911 Team, Citi, has seemed to cut back on staff that was hired to handle the excessive REO inventory.
Today, we still get listings and are seeing, more and more, Citi playing the “management” arm for other banks or investment groups.
I know why – because they do a stellar job and have a “grading system” in place for the local real estate agents they hire to represent their name. If the agent falls behind, they are fired by Citi and the REO listing is re-assigned.
The calls would come in, “Is this Connor?”, I would reply in the affirmative. “Hey Connor, this is James Wellington and I wanted to know if you have access to bulk sales with the banks that you have relationships with?”
My answer was always the same, “let me check and I’ll get back to you…” I would then pick up the phone and call one of the Asset Managers that I knew would answer me 🙂 and asked. Paris911.com/call
There was a department in place, access was by invitation only, and I passed along the information. I don’t know if it has changed because it has been a while since fielding such a call.
Bulk Sales – Buying real estate listings, directly from a bank or other investment group. Here are a few items that you may not know about Buying bulk sales. While this is not an exhaustive list – it will give you a greater grasp of the Bulk Sale process.
- Investigation period – unlike a standard sale or a person buying a foreclosure that has been placed onto the local market to sell, there may be no investigation period for the Bulk Buyer. They are working off of the “odds”, kind of like Vegas. They know if they are buying 50 properties at 1/2 of their fair market value – even if 25% of the properties were occupied with squatters and had liens, they are still going to make out way in the Black.
- Minimum Bulk Packages – While there is not a “set in stone” rule when it comes to bulk sales of REO’s – we have seen typical numbers starting at 25 minimum.
- Profitability – What is the return, if they calculate their profits to be at least 25% when everything is said and done – they are doing well.
- Payment – Cash or wire transfer – typically a wire transfer. It’s hard to lug around 15 million dollars in cash 🙂
If you want to watch the off market trades and REO listings changing hands check out our Foreclosure Radar system Paris911.com/ForeclosureRadar
You can also view all of the Foreclosure listings that are currently on the market for sale in the Santa Clarita valley cities and in the rest of Southern California Paris911.com/Foreclosures
Be safe – search well and please share this if it was of help to you and yours.