Last week, I received a package of - now get this - 182 houses DIRECT from Fannie Mae. The price was around $450,000 - too rich for me - but the package sold within 2 hours to another investor in the network. You can do the math... $450,000 divided by 182 houses... thats only $2,472 per house! Do you think you could make some pocket change on that deal? If you averaged ONLY $15,000 per house, you would have pocketed a cool $2.7 million. Now THAT'S a home run.
By the way, my real estate friend has purchased over 700 houses since May of 2007. He has made over $1,000,000 profit starting with an initial investment of only $40,000. I haven't done quite that well since I only started a month ago. Him and I are having an absolute ball doing this. It's fun, exciting, and very, very profitable.
Check it out at www.REOBlackHole.com
Sunday, January 18, 2009
Risks for REO House Packages
No more hunting for houses - they just show up in your in-box in your email. Every package is put out nationwide to this investor list at the same time so you have as great a chance as all other investors. Every one of these packages is direct from the source at ROCK BOTTOM prices.
Is there any downside? Well, sure there is. No risk, no gain. Sometimes, one or even 2 or 3 of the REO houses may not be a marketable property. It could have burned down or may have a sewer lien against it. Some of them are just dogs. I just find a charity and donate them.
The way the numbers work is simple: in a package of 10 houses, 2 or 3 may be dogs. The thing is, I pay so little for each one of them that I have a LOT of room for error. Sell 2 for $19,000 and have 8 left over? I can afford to lose out on a couple of them.
The one thing you need to take advantage of this program is liquid money. Either you or a friend/business partner should be able to come up with $30,000 to $50,000 at the drop of a hat. These kinds of deals DO NOT last long. When they are emailed out to the network, a decision to purchase must be made almost immediately, otherwise, another investor will have already bought them.
Is there any downside? Well, sure there is. No risk, no gain. Sometimes, one or even 2 or 3 of the REO houses may not be a marketable property. It could have burned down or may have a sewer lien against it. Some of them are just dogs. I just find a charity and donate them.
The way the numbers work is simple: in a package of 10 houses, 2 or 3 may be dogs. The thing is, I pay so little for each one of them that I have a LOT of room for error. Sell 2 for $19,000 and have 8 left over? I can afford to lose out on a couple of them.
The one thing you need to take advantage of this program is liquid money. Either you or a friend/business partner should be able to come up with $30,000 to $50,000 at the drop of a hat. These kinds of deals DO NOT last long. When they are emailed out to the network, a decision to purchase must be made almost immediately, otherwise, another investor will have already bought them.
Finding REO Houses
Sounds too good to be true doesn't it?
That's exactly what I thought. Until I did some research and actually spoke to some of these investors. I was, to put it mildly - AMAZED.
These guys were buying a package of 10 to 50 houses and within a few months were selling them at 3 to 10 times what they had paid for them. AND - they were selling them at great prices too! They were even using real estate agents in the various cities and towns to do the legwork and the agents were earning commissions and getting the homes sold within a few weeks!
It's easy to imagine buying a $40,000 house for $4,000 and then reselling it way, way under market value for $18,000. In short - in any market, there are always deals to be had. The HARD PART, is finding the REO Houses.
That's exactly what I thought. Until I did some research and actually spoke to some of these investors. I was, to put it mildly - AMAZED.
These guys were buying a package of 10 to 50 houses and within a few months were selling them at 3 to 10 times what they had paid for them. AND - they were selling them at great prices too! They were even using real estate agents in the various cities and towns to do the legwork and the agents were earning commissions and getting the homes sold within a few weeks!
It's easy to imagine buying a $40,000 house for $4,000 and then reselling it way, way under market value for $18,000. In short - in any market, there are always deals to be had. The HARD PART, is finding the REO Houses.
How to Buy REO Houses in Bulk
It turns out that due to Federal Regulations, lending institutions are only allowed to hold REO houses for a certain period of time and then they MUST sell them - at ANY price.. The problem is that the lending institutions are not in the property selling business. They simply do not have a list of people sitting around waiting to buy their houses.
So what do they do when they NEED to get rid of them?
They dump them into the Black Hole of houses.
There is an underground market for REO properties and foreclosed homes that lenders have to dump. Almost no one knows about this process. No one knows who these people are, and no one knows how to get on this list. It is a select few.
So what is this Black Hole? It is a network of seasoned, well funded investors who can buy 100 homes at the drop of a hat - and buy them they do. Here's the thing - they are discounted to rock bottom! $5,500 per house, $3,500 per house, even as low as $2,000 per house!
So what do they do when they NEED to get rid of them?
They dump them into the Black Hole of houses.
There is an underground market for REO properties and foreclosed homes that lenders have to dump. Almost no one knows about this process. No one knows who these people are, and no one knows how to get on this list. It is a select few.
So what is this Black Hole? It is a network of seasoned, well funded investors who can buy 100 homes at the drop of a hat - and buy them they do. Here's the thing - they are discounted to rock bottom! $5,500 per house, $3,500 per house, even as low as $2,000 per house!
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