AgentMarkets & Economy

‘Turnkey model’ for bulk REO sales a win-win for contractors, community

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

In a number of cities, especially those hard hit by the recession, investor groups have swooped in, buying up hundreds of REO properties as quickly as they can be located. To some observers, this appears to be problematic, because the new owners won't be living in those houses and renters can destabilize a neighborhood. Then there is the issue of whether investors are simply being predatory, stealing away these busted residences before anyone else might consider a purchase because they have raised the capital and pretty much can call the shots. I'm not going to say the critics are wrong, but I will make the case that investor groups are doing a service to the lenders by putting the homes back into private ownership. They are resurrecting neighborhoods, because when investors purchase they reinvest in the homes (some of which have been trashed), making them market-ready. There is a third argument in favor of the investors. Thousands of contractors who have lost their jobs o...