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.

Portfolio Buyer1...
I have several investors interested in REO packages also. I am having trouble finding a source that can actually offer the package (they say they can, then string me along with excuses).
Have you run into this also? Do you have a reliable source?
Thanks!

I am a bulk REO specialist. I understand all of you all's concerns about being strung along, etc. It is very hard to find reliable sources - both on the buyer and seller sides.

One of the things that makes it so difficult is, there are a lot of documents up front, including NCNDs with every party involved. It is a very cutthroat world in this arena and you really need to be careful who you deal with.

If you have any questions at all, you can post or PM me. I don't know if all of you would want the whole process spelled out here so just let me know your questions. I am happy to help any way I can!

Thanks for the offer. I am sure many of us would love to hear more about your experiences. Feel free to post any information about bulk REO's!

Yes 123sisters, I have run into that problem. But you just have to weed out the flakes quickly or you'll lose the deal. If you're looking for sources, i have a few. Get in touch with me and we can see what we can do. I'm pretty blunt and up front, if we can make the package work...great, but if we can't i'll let you know from the start so we don't waste time.

Yes,

I'm interested because I have buyers that want big bundles. '
My contact info: Andrew Macia, andrew@andrewmacia.com, http://www.andrewmacia.com

Our company has bought several large non performing portfolios. We are currently trying to sell several large portfolios as well. I am located in Columbus, Ohio if you are interested in seeing of our Portfolios.

It's true with commodities that you do not have to have a a real estate liscense.These types of companies deal in 1031's,stocks,commodities,estate planning,reit's etc.

They put a commission in the deal for themselves,study the papars carefully and have the buyer sign and intial and date each page so that a different page cannot be inserted later halfway through the contract.

If anyone can do a block at 5 million in Colorado please email me snowmassrider@yahoo.com . Thanks!

If anyone can do a block at 5 million in Colorado let me know. snowmassrider@yahoo.com . Buyers have secured funds via hardmoney.

If anyone can do 10 million block in Austin TX contact me kgordon4@gmail.com

I can cater to all custom order Bulk REO packages if anyone is interested please contact me via email at integrityfirstgroup@gmail.com

-Chris

My company can provide you or your buyer with a source of bulk REO and Notes. We have worked very hard and done a lot of research to reach the contact that we have that is a banks representative or gate keeper to the banks. The purchase of REO’s and Notes is a very simple process. All you or your buyer needs is a soft LOI that states what you want, what type funds and how you will provide POF. Sign our NCND and a Fee Agreement. We then step back and let the seller and buyer do what they do…. NOTICE: I DO NOT WANT TO SEE YOUR POF. YOU WILL PROVIDE THAT DIRECTLY TO THE BANK’S ATTORNEY.

There is a minimum order of $10MM

Daniel Scales
Off: 866.213.7834 ext. 200
Cell: 916.275.8678
Efax: 916.313.8687

I have several buyers wanting bulk REO packages priced up to 60M. Please email me at:esalechick@gmail.com ONLY if you are DIRECT to seller/compiler and can really perform. We will require our forms to be filled out along with a list of recent transactions that you have performed. Thanks!

I am two steps away from a person on the Wall Street floor, which buys REO Tapes, and I am two steps away from one out of the five compilers in the US

Beware of Bogus Scams

Warning Signs of Potential Bogus Scams as Follows:

* Name dropping
* Buzzwords
* Excessive secrecy
* Over-reliance on authentication
* Excessive disclaimers
* Unwarranted appearance of professionalism
* Big player behind the scenes
* Yields are too high
* Lack of transactional basis
* A secondary market where these investments can be laid off quickly and profitably
* Flawed documentation

What to Look For

There are many terms that are commonly seen in documents presented by fraudsters in marketing fraudulent investment schemes. Fraudsters often mimic and misuse legitimate banking terms. Many of the following genuine terms are misused along with those that have no meaning in the real world. They are thrown together in documents that contain a mix of fact and fiction, often confusing to a first-time investor.

* Non-circumvention
* Non-disclosure
* Good, Clean, Clear, and of Non-Criminal Origin
* Blocked Funds Investment Program
* Prime Bank Trading Program
* Federal Reserve Approved
* Treasury Approved
* Roll Program
* Irrevocable Pay Orders
* Prime Bank Debentures, Notes, Guarantees, Letters of Credit
* Fresh-Cut Paper
* High-Yield Investment Program (HYIP)
* ICC 3034 or 3039 Letter of Credit
* Off Balance Sheet Program
* Prime Bank Debenture Trading
* Prime Bank Instruments, Notes, Guarantees, Trades, or Letters of Credit
* Prime European Bank Letters of Credit
* Prime World Bank Debentures or Financial Instruments
* Prime Insurance Guarantees
* High-Yield Debenture Trading, Financial Programs, Asset Management Programs
* High-Yield Investment Programs (HYIP)
* High-Yield Promissory Notes or Bank Notes
Guaranteed Bank Notes
* Intermediate Bank Notes
* Roll Programs or Bank Debenture Roll Programs
* ICC 500 or 600 Bank Debenture Instrument
IMF (International Monetary Fund) Stand-by Letters of Credit
IMF Backed Securities, Bill of Exchange, Bill of Equity, or Backed Bonds
Discounted U.S. Treasury Obligations, Renting or Leasing of Treasury Securities
Blocking of Assigned Treasury Securities
* "Limited Edition" or Defacto Treasury Securities
US Dollar Bonds, Federal Notes, Medium, or Mid-Term Notes or Bank Notes
Blocked Funds Letters or Investment Programs, Documentary Letters of Credit
Irrevocable Pay Orders, Collateral First Debentures, Money Center Bank
Fresh Cut Paper or Bank Debentures, Bank Paper
* Seasoned Bank Debentures
Private Placement Programs
* Private Trading Programs
International Certificate of Deposit (LCD)
* Irrevocable Bank Purchase Order (IBPO)
Irrevocable Corporate/Confirmed Purchase Order (ICPO)
Irrevocable Prime Bank Commitment
* Zero Coupon L/C

More Prime Bank Investment Fraud phrases to watch for:

* Secret trading program
* Banks or Federal Reserve will deny involvement in these programs
* Non-circumvent / non-disclosure Agreements
* Funds are "Good, Clean, Clear, and of Non-criminal Origin"
* Funds pooled together for minimum trade amounts of $10,000,000 or $100,000,000 (sometimes listed as "Ten [10] Million USD,"and the like)
* Interest rates guaranteed from 6% to 100% to 1000% each month
* Trades with only the top 10, 25, or 50 banks in the world, such as Barclays or Credit Suisse
* Program backed, approved, or sanctioned by the Federal Reserve Bank (FED or FRB), the International Monetary Fund (IMF), or the International Chamber of Commerce (ICC) or the Treasury Department
* "Trader," "Facilitator," or "Broker"
* Only 5 to 10 "traders" in the world have access to this program; Trader will conduct 40 trades each year.
* Percentage of the yield will go to charity, social programs, or humanitarian efforts
* U.S. Government Agencies will deny the existence of these programs because the Government does not want your money to leave the U.S.
* U.S. Government Agencies try to seize the funds for themselves
* "Due 1, 5 or 10 years and 1 day"
* "108" bank to bank certificate which guarantees the principle + 8% annual interest
* "Funds of non-criminal origin, are legally owned by or assigned for the participation in a specified High Yield Asset Management Program"
* Principal is guaranteed and/or secured by letters of credit "The funds will remain in a bank account that only you are signer on. These funds will be used as collateral."
* Offshore trust accounts / tax free interest
* Can obtain proceeds through Visa debit cards
* Advised to remove from legitimate pension/WA accounts and send funds to self directed pension companies who collateralize the funds with a note, and are then invested in Prime Bank Instruments
* Our "Facilitator" has access to the worlds top "trader"
* "Trader" "Trading Bank" "Exit Buyer"
* The way all banks or big banks make their money
* Trades are sometimes referred to as "Tranches"
* Only a select few are invited to participate in the trading program
* Originally established by the elite families such as the Rockefellers, Gettys, Rothschilds, and the Carnegies.
* Fractionalize or collateralize the funds
* Fractional banking laws
* Hypothecation with insurance companies ($1.2M needed for insurance company to "hypothecate" $l00M needed for the trade)
* Investment periods quoted on contracts would be "90 banking days," "one year and one day," or "five years and one day"
* Program developed to level out the yo-yo syndrome in the banking industry
* "The information contained in this document is for information purpose only and is not intended as a solicitation nor an offer to sell any form of securities"
* Invested funds are fully secured by a Bank Endorsed Guarantee
* "Cash" Wire Transfer
* C&F ASWP
* Comfort Letter
* "Conditional" S.W.I.F.T. Payment
* CUSIP Number
* Discounting L/Cs
* "Trades are specifically established at a term of 1 year and 1 day, so it does not have to appear on the bank's balance sheet"
* Foreign Bank Advice
* Irrevocable, Divisible, Assignable, Transferable, Fractionable, Revolving, Confirmed L/C Payable 100% at Sight
* Key-Tested Telex (KTT)
* Market to Buy or Sell L/Cs
* Proof of Funds
* Proof of Product
* Ready, Willing, and Able (R,W, & A)
* Soft Probe
* 2% Performance Bond
* Pre-advise issued by bank
* Bank responsible commitment of funds
* A claim that the "promoter" has a steady business relationship with a large international bank
* A refusal to give "full disclosure" of all involved
* The expression "mandated agent"
* Standby letter of credit (SLC)
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If you find some companies the provide actual deals and lists, I would be interested. So far over the years I have had dozens of them presented to me, but they are all either have a million 'middle-men' making it impossible to put the deal together, or it was presented by someone who 'knows' the owner and turns out to be nothing.

If only I had a dollar for each time someone who 'Works with Trump' has presented me with a list.

Same boat, very few of the bulk reo deals that come across my desk actually fund. The issue I see normally is a buyer who is not truly qualified and wants all of the package financed. I'm in a bit of a different spot than you, however, as I'm on the financing side, and these deals come my way when the cash is lacking.

I talk to investors everyday who have reo's on thier books, however. If anyone is interested in California reo's and truly has cash to close with, drop me a line and we can talk.

I have a buyer interested in purchasing a bulk REO package with a value of 1 Billion. They will consider condos in CA, AZ, MS, AL, GA, FL. Condos must be new with retail values not exceeding 350k. They also will consider townhomes and single family residences. POF will be send to the seller only. Must work direct with seller.

Please contact me danny@greenlightaz.com

Danny Fried

Green Light Real Estate

My group has purchased 127 properties in the last month. They all are inspected and photographed by IMS. We paid cash. We have sold approximately 35 properties so far. We have provided financing for about half (land contracts. We are in the process of putting together mini-packages as a way of quickening the hold time.

My group recently purchase 127 REO properties. We have sold 35 so far, about half with notes. We are putting together some mini-packages to shorten the hold time.

What is the safest way to approach Bulk REO sales? I have some in with Wells Fargo and Fannie Mae. What is the best way to confirm a buyers ability to actually perform and protect my interest as Broker? Has anyone heard Commercial Vanguard Marketing, LLC?

i am looking to purchase 40M-80M in California.
SFR,MFR & Commercial.
I AM The Buyer.
Serious Inquires ONLY

Unless you are direct to the buyer or seller I suggest you think twice.I am involved in bulk transactions as an intermediate.I represent direct buyers and sellers.It is not an easy market but if established very rewarding.

Andrew:

Our charitable org needs a funding partner (FP) to acquire a portion of a 2B Calif bundle tranching at 31-51 cents. Would like to have FP (with or org as JV) buy a portion of the bundle

We would refinance at the end of the year and buy out the FP. ROI to FP would be tax free (we are IRC 501[c][3]).

Wm McGill, Administrator SCAACI

Our charitable org is trying to raise money by furnishing leads to bulk buyers. A 2B Calif bundle is now tranching at 32-51 cents. Coumd we earn a fee by providing a contact? Thank you.


Wm McGill, Administrator SCAACI

how do you guys find bulk REOs? direct contact with the servicers?

This is too funny. I love how some of you guys have access to bulk REO deals and have a gmail email address. Puhleeze.

Just as an FYI, Fannie has done 2 bulk deals. When their inventory reaches a certain level, they will pull properties from around the country and offer them as a "bulk package". They put them out for competitive bidding and notify potential buyers/brokers via email. You can easily register at their website. They do not do custom packages as many people claim.

Also, if you people would just consider the math on these "2B packages", you would realize that you're dreaming. There are not 2B REO packages because the inventory is NOT there. If Fannie isn't doing them, you can bet your @$$ other banks aren't doing it. This isn't to say that you can't run across 50-150 homes at a time that a builder might want to unload, but it is rare.

As an REO broker, I get people asking about this all of the time. We've asked all of our clients (IMB, Fannie, Wells, CHL, etc.) and none of them are done with any regularity. In fact, Fannie is the only one who said they had even done one. This insanity has to stop.