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5 Killer Check List Steps For A Successful Wholesale Bulk REO Purchase

September 18th, 2010 | Author: fts

What is a Wholesale Bulk REO: Purchase Program?

Wholesale is the next level REO purchasing for experienced wholesale buyers. It is essentially going from dabbling with smallish REO packages to swimming with the sharks. As one of them.

As intimidating as it may seem, wholesale bulk REO is really an easy to follow process. Wholesale Bulk REO takes advantage of a small window of time where REO properties are available for quick purchase in national and state pool runs before they are moved over to traditional liquidation programs. With wholesale bulk REO timing and acting fast is everything. Once the deal is gone, it is gone.

Wholesale bulk REO is available trough proprietary inventory access from the top 50 banks, hedge funds, insurance inventories, and mortgage companies. With minimum order set to $10,000,000 to unlimited, the possibilities are endless. With something as great as wholesale bulk REO there are few requirements, representations, warranties and special instructions that must be followed.

To get a fast train to Wholesale Bulk REO:, there are few requirements:

• 1 Signed Mutual Non-Circumvention/Non-Disclosure Agreement
• 2 Signed Buyer Profile Form
• 3 Signed Custom Purchase Order Form
• 4 Letter of Intent
• 5 Letter of Credibility/Credit

Representations and Warranties for wholesale bulk REO include:
• Portfolio and Order Profile:

o Assets are sold as is
o Acquisitions division will try to match the asset pool with the Buyer’s Profile and Custom Order
o Exceptions are minimal
o Picking/ choosing not available
o Property pools are formed from a single or more asset providers.
• Purchase Contracts
o Variable on case basis

• Asset Representations:

o Fully foreclosed
o No outstanding liens or encumbrances
o Clear title commitment issuance at closing
o Buyer foots other closing costs

Special instructions for wholesale bulk REO include:

• For a Pre-Program, depending on a case:

o Complete Mutual Non-Circumvention/Non-Disclosure Agreement (One time only)
o Complete Buyer Profile Form (One time only)
o Complete Custom Purchase Order Form (For each order)
o Submit Letter of Intent (See sample below: Must be on buyer’s personal or Company Letter Head. It should include info from the profile, purchase order, exit strategy and future order intentions. Must be written in paragraph form)
o Submit Letter of Credibility/Credit – This is NOT Proof of Funds. Letter must be from a bank, mortgage broker, hard money lender, or attorney, stating the buyer can perform on the size of the portfolio the buyer is requesting.
o Have Proof of Funds available to provide directly to the source

• For Source:

o Source Contact
o Source will contact the buyer.
o Source works directly with the buyer, after Proof of Fund and verification completed

• Custom order placing
• Property list is given to the buyer
• Due diligence period is three to five days, depending on source
• Properties are to be verified with source
• Closing involves working with Title Company

While wholesale Bulk REO Deals: does require some effort and qualification, the discounts and profits generated well justify the little work needed. Anyone who’s in real estate investing dreaming of making it big is well advised to take time and effort to explore wholesale bulk REO.

By Mark Bradley
Ultimate Bulk REO Secrets
Get my $99 Bulk REO Insiders Report FREE (50 pages)
http://ultimatebulkreo.com/bulk-reo-insider-report/

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