Bulk REO Lists - How to Avoid Being Taken
If you are building a real estate portfolio, buying properties from bulk REO lists provides a rewarding opportunity, but as with any potentially high return investment, there are charlatans prepared to take your money and leave you stressed and in financial ruin.
The internet is chock-full of web sites claiming to sell bulk REO lists (also called bulk REO tapes).
Beware when obtaining these lists.
A few of the lists are fake, and others contain unsellable properties such as burned out shells, empty lots, and uninhabitable mobile houses.
Charlatans earn a living sounding plausible so how do you eliminate the frauds from the credible bulk REO list providers? 1.
Start by getting references.
Talk with 3 to 5 people who've bought lists from the broker you are reviewing.
Ask them what made them pleased with their experience and what left them dissatisfied? Even disreputable brokers can organize a few glowing references but getting 5 is much more difficult.
Be sure to ask the references how they're related to the broker.
If they're family, have a monetary percentage in the broker's company, or receive a referral charge, take their referral accordingly.
2.
Use escrow.
Only cope with brokers who are prepared to place your cash in an escrow account to be paid on delivery of deeds or affidavit of sale.
Why wouldn't any credible company use an escrow account? Why would you take less? 3.
What services does the broker offer to clients? All brokers make a commission, but the ones that add commission without adding value should be avoided.
4.
Handle top tier brokers.
Top tier brokers are 1 to 2 steps away from the deeds to the properties and that much nearer to delivering lists with fresh properties.
REO properties do not simply grow stale, they rot.
The longer a home sits on a list, the longer it is empty and captivating unattractive attention such as rule violations, vandalism, and physical damage from absence of maintenance.
An alternate way to discern the standard of a broker, is to identify check one of the lists.
How many entities have owned a specific property since foreclosure? If there's more than 2, the property has been bounced from asset manager to asset manager.
If you're offered a listing of three hundred or even more properties, most likely those properties have amassed over time from a selection of sources AND they're old.
This doesn't suggest it's all bad, just know exactly what you are purchasing! Much cash can be made, or lost, in the bulk REO business.
Perform your required groundwork, work with advised, reliable companies, and seek experienced mentors.
With reasonable precautions, you can experience financial success in this fast moving business.
And now I would like to invite you to get FREE instant access to our cherry-picked bulk REO lists and learn about our unique guarantee.
The internet is chock-full of web sites claiming to sell bulk REO lists (also called bulk REO tapes).
Beware when obtaining these lists.
A few of the lists are fake, and others contain unsellable properties such as burned out shells, empty lots, and uninhabitable mobile houses.
Charlatans earn a living sounding plausible so how do you eliminate the frauds from the credible bulk REO list providers? 1.
Start by getting references.
Talk with 3 to 5 people who've bought lists from the broker you are reviewing.
Ask them what made them pleased with their experience and what left them dissatisfied? Even disreputable brokers can organize a few glowing references but getting 5 is much more difficult.
Be sure to ask the references how they're related to the broker.
If they're family, have a monetary percentage in the broker's company, or receive a referral charge, take their referral accordingly.
2.
Use escrow.
Only cope with brokers who are prepared to place your cash in an escrow account to be paid on delivery of deeds or affidavit of sale.
Why wouldn't any credible company use an escrow account? Why would you take less? 3.
What services does the broker offer to clients? All brokers make a commission, but the ones that add commission without adding value should be avoided.
4.
Handle top tier brokers.
Top tier brokers are 1 to 2 steps away from the deeds to the properties and that much nearer to delivering lists with fresh properties.
REO properties do not simply grow stale, they rot.
The longer a home sits on a list, the longer it is empty and captivating unattractive attention such as rule violations, vandalism, and physical damage from absence of maintenance.
An alternate way to discern the standard of a broker, is to identify check one of the lists.
How many entities have owned a specific property since foreclosure? If there's more than 2, the property has been bounced from asset manager to asset manager.
If you're offered a listing of three hundred or even more properties, most likely those properties have amassed over time from a selection of sources AND they're old.
This doesn't suggest it's all bad, just know exactly what you are purchasing! Much cash can be made, or lost, in the bulk REO business.
Perform your required groundwork, work with advised, reliable companies, and seek experienced mentors.
With reasonable precautions, you can experience financial success in this fast moving business.
And now I would like to invite you to get FREE instant access to our cherry-picked bulk REO lists and learn about our unique guarantee.
