Recently had two clients ask about these purchases. Anyone here have experience in dealing with bulk purchases from a buyer standpoint?

Steele

I have a client who is looking to buy in southern CA area too. Anyone here have a bank which wants to Bulk REO?

Commercial loans will work here and developements with stalled sales are for this type of purchase.

Does the buyer of bulk REOs usually pay a fee to the broker(s) or does the seller pay?

Steele

Which side are you working on, that will be the question? Same as in any deal.

Buying side. In a bulk reo sale does the lender still typically pay the fees of the buying side real estate agent? Or is it more like commercial transactions where the buyer might pay their own agent? And I realize one can negotiate either way. What I am looking for is what have others who do bulk reo sales (either side) have experienced.

Looking for a typical scenario. Are the fees part of the transaction?

i would ask the buyer for a fee agreement

maybe stating they will guarantee you a certain commission or make up the difference between what the bank is paying and what they will guarantee

for example

they guarantee you 3% if the bank only pays 2% they make up the 1% difference. Ive done this many times.

Ok, using your example, you would expect a 3% commission on a bulk package of 5-10 million?

Having a little trouble seeing that going through with either the bank or a major investor.

But maybe this is what is normal. As I said, this would be new for me and that's why I'm asking questions.

Just so I understand, THE BPO GURU, this is what you do on bulk REO packages and have done so?

Steele

I am with a boutique firm in Scottsdale, AZ and we specialize in these types of transactions (Bulk REO's). We deal direct and are able to acquire properties in all 50 states. We can bundle from 5 million and up. Please let me know if you are interested.

Hello,
I'm a realtor in Las Vegas. I'm very interested in REO properties. Let me know of any additional informnatio.

I recently came across a company that sells Bulk REO Packages (10 million minimum), and put an order in for a package with an investor that I know. We are waiting to hear what they have to offer. I am uncomfortable with the process with this company because everything has been verbal (except the actual order), and they are a new company. Nothing is in writing(including commission) until my buyer they agrees to buy. I am concerned about getting paid at the end. They also told me that the sale is considered a commodity, you do not even need a RE license to represent the buyer in the deal. Therefore my broker does not need to be involved (I am an agent not a broker).

I was wondering if anyone on this board has bought or sold any REO packages, or does anyone know of a reputable company that sells them? Feel free to PM me or post. Thanks!!!

If everyone is "real", then you should have no problems. Too often, what you have is a daisy chain of people who expect to get paid large sums of money simply for forwarding an email, but adding no value to the transaction. My advice is to ask a lot of questions.

Would be interested in any portfolios you have, performing or non-performing. What we are looking for are pools of secured paper. Mortgages and auto paper (performing or non-performing). Packages can be anywhere from 10 Million to 5 Billion, but must be loan level tapes with all details included so we can assess the package. We ask for 48 hours of exclusivity and will sign a non-disclosure agreement if required. Give me a call if you have any questions.


If your company doesn’t have any pools, perhaps you know someone who does and could arrange an introduction. We would be very appreciative.

I am very suspicious of these offers. I only have 6 REO listings and have had several calls with similar offers. I am new to the REO side of the business, but very skeptical. Anyone that can shed some light on this would be greatly appreciated.
As I have always been taught, if it seems to good to be true, well you know the rest.

Someone with no real financial background or direct knowledge of these types of deals would of course think they are too good to be true. You answered your own question by stating you only have 6 REO listings. You most likely have had as much knowledge and experience with bulk deals and note buying or selling as I have with Quantum Physics. This isn't a bad thing, you simply need to educate yourself by asking intelligent questions and learning as much as you can. Different people have different mentalities. As I have always been taught, it's only too good to be true, if it's not happening to you. Make it happen.