Agencies balk at bulk buyers?
Letter to the Editor
By Inman News, Friday, March 20, 2009.Re: 'Fannie, Freddie REO inventory swells' (March 18)
Dear Editor:
I have been working with cash investors for over a year attempting to purchase bulk packages of foreclosures from the agencies, without success. These investors are willing to purchase at reasonable discounts and have exit strategies in place to put homeowners back into these properties using private money.
I have found no direct access to facilitate these transactions, and discounts that I have seen have not made these investments worthwhile for my buyers.
I'd like to get direct contact information and willingness from the agencies to work with these private investors looking to help out and purchase in bulk at reasonable discounts.
Philip Berson
Managing member
Remedies in Real Estate LLC
Calabasas, Calif.
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Submitted by Ashton Coleman on March 20, 2009 - 4:43am.
Very true Philip,
But could it be location dependant? We are seeing bulk sales being a success is Miami-Dade (Downtown) and 1 in DEC08 in Bal Harbour for $27M (101 condos). The developers do want to release unsold inventory but additionally, protect their values from would be speculator closed sales. They are very "hush hush" on their bottom lines yet inevitably, it soon becomes public record. If anyone is looking for a bulk sale on the Miami Beaches ie.) Sunny Isles & Bal Harbour, there are opportunities with a letter of intent however 10M doesn't get you 50% discount... $50M may. ROI is only 2% <$20M -<$50-100M(maybe)10% not factoring in 3-5 yr. appreciation and tax deductions.
CAVEAT: See new JAN09 FNMA Guidelines
Think Big, Aim High, Act Bold,
Ashton Coleman
Ashton@MiamiDreamRealty.com
http://JadeCondosSunnyIsles.com
Keller Williams Miami Beach
Submitted by Joseph Bridges on March 20, 2009 - 7:30am.
Phillip,
It depends on how much money your investors have. We have bank contacts and asset manager contacts that are willing to do deals with investors but they need to sell at a minimum of 20 million to make it make sense.
Their discounts are being able to buy at 35 cents on the dollar for most areas of the country but slightly higher in CA.
Most investors want to buy in the 5 million dollar range but that doesn't give the banks and asset people enough leverage and solve enough problems.
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Submitted by Robert Stec on June 25, 2009 - 8:11pm.
The other angle is purchasing non performing notes. Many hedge funds and servicing companies are involved this way having great success and receiving the steepest discounts, cleaning up the paper that they can and taking back the rest as REO's.
With regard to REO's and "bulk" buys I also think the definition of Bulk varies depending on who you ask. I agree that most investors are in the 2.5 million - 10 Million range, One of our sources does bulk deals with as few as ten assets.
http://buyersutopia.com/bulk-real-estate-reo-investments.html