Q&A: Buying Bad Loans and REOs from Lenders
I work with major banks in the US who are looking to liquidate their
portfolios. You will work directly with the seller mandate to purchase
bank REO’s in bulk from a minimum of 10 million to 1 trillion dollars
nationwide at about a 70% discount on retail value. Our inventory is
mainly residential with some commercial investments available. We are
looking for CASH investors with a minimum of 10 million dollars
documented by proof of funds from your bank. Time is of the essence,
as these deals move quickly and we currently have investors buying in
the billions.
Contact xxxxxx if you are
interested. Thanks.
Response:
There are a lot of these deals being offered lately. Mostly by investors that are pooling money – in other words, depending on who you work with, you don’t actually have to have $10M to invest. Several people can pool together, and most of the investors pitching these have much lower investment criteria.
As for the deals themselves – it sounds great, and it may be great, but the bottom line here is that these lenders are mitigating their losses. They are betting that getting a discount on their loans is better than going through the foreclosure, eviction, and REO process which might only yield 50% on the dollar or less. The discount, is usually based on the original appraisal done when the loan was made, and not on the present value and condition (which is usually not known), which could be substantially lower. In other words, some of these homes could be worth less than you pay for them and others more. Your ability to make money has to do with how sophisticated your system is for foreclosing, evicting, renovating or making ready, and reselling these homes quickly and efficiently, compared to how well the lenders already do this.
Phill
Survey company for Elevation Certificate
I was wondering if anyone had any referrals of a inexpensive survey company that can do a Elevation stud for a certificate (Flood Insurance).
Thanks,
Tim
ANSWER
Tim,
My experience is that any survey company can do this. At least every one I have talked to.
Phill
