Bulk REO PortfoliosBulk REO portfolios are portfolios of REO properties in bulk or a very large quantity. The large quantity can refer to prices in tens of millions to hundreds of millions or a few billion dollars.
REO portfolios are properties owned by the bank and the banks are looking to sell the bulk REO properties off. In order to get rid of the properties, the banks sell the properties in bulk or "large batches." Banks are not in the business of holding properties, paying taxes on them and maintaining them. Hence, they desire to get rid of the Bulk REO portfolios as quickly as possible. The banks offer a heavy discount on these properties. The prices can vary anywhere from 30c to 60c on the dollar and upward and the prices depend on a number of factors.
The banks are overloaded with toxic loans and are looking for buyers with a huge buying capacity to take the toxic assets off their books. Banks like to get rid of huge portfolios because it saves them time and money in the transactions. They can get rid of a large number of properties in one shot and get the properties off their books.
Banks look for bulk REO investors with deep pockets who can takedown the portfolios quickly and efficiently. A bank typically requires a LOI (Letter of Intent) and POF (Proof of Funds) to start the transaction and verify the legitimacy of the buyer.
Sellers of REO portfoliosBulk REO portfolios can come from different sellers: private sellers or a bank. The private sellers may acquire the properties from the bank and do a double escrow transaction to close the deal. Most of these sellers are looking to get rid of the properties for an immediate profit.
Buyers of REO portfolios
Some buyers may buy the properties and hold them as investments. Other buyers may resell the properties either in smaller packages or individually to profit from them.
Some buyers may purchase properties that need heavy rehab work. The buyers may have a rehab crew doing the work and rehab the properties and resell them in the open market. Turn-around times vary depending on the amount of rehab needed and the nature of the property i.e single family vs. multi-unit vs. larger apartment complexes etc. To request a bulk tape with specific criteria, please fill out the FREE bulk tape request form.
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