Getting involved in the bulk REO business is actually a pretty simple process. It takes some legwork, but it's eminently doable by a determined investor with some initiative.
The first thing you do is get to know the higher ups in local banks. These are the banks where the top brass are mostly local, and that have been banking in your area for awhile. Don't start with Bank of America, because the chances of your talking to the top REO department officials are pretty slim.
You want to start out with smaller reginoal banks and credit unions. Once you've got to know a handful of local bankers, mention that you invest in real estate and would really like to have a sit-down with the REO supervisor.
You have to time it right to get the best deal. You know how people say that to get the best deal on a car you should go toward the end of the month when the sales people are all trying to meet their quotas? It's similar with banks when a quarter is coming to an end.
At the end of a quarter, banks report their earnings. The top brass are thinking about what kind of bonus they're going to get at the end of the year. These people do not want under-performing assets (like foreclosure properties) on their books. Knowing the quarterly reporting timeline, come to the bank officer you're closest to about a month ahead of time and let him or her know that you would be willing to take several under-performing assets off their hands and would like to look at what they have. If you play your cards right, you'll come away with several properties that you've bought at below market value. The bank crosses a few under-performing assets off their books, and their quarterly reports suddenly look brighter.
The key to doing this and doing it well is realizing that real estate investing is a business, and you should approach it as if you were a business: If you approach bulk REO investing as a business you'll realize that you have a lot to learn, and you'll take the time to learn it. Getting educated in bulk REO investing will put you miles ahead of the wanna-be's who talk about billion dollar deals but never close them. As they say in Texas, they're all hock and no spit. Applying solid business principles to bulk REO investing is the way to be successful at it.
If you have not yet purchased the system Bulk REO property Investing Secrets exposed.. now is the time to do so at you can pick it up here
Sincerely
Chris Ross
Real Estate Investor
Mentor
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