REO Portfoilos $50k +/- ( Second Try)

This is my second try at this post. I posted this last night and it was deleted this morning. I spoke to one of the moderators who gave me some pointers. Maybe this will work.



I often see REO portfolios or packages offered that start at $25M-$100M Minimum. The problem with these offerings as I see it is that it leaves a lot of would be investors out of the loop.



I regularly purchase REO portfolios for under $50,000. I buy these portfolios and then typically sell them off individually to people who are purchasing them to live in via owner financing. I do not do any rehabbing, I sell them as is and let the buyer do the repairs. I then sell the note or collect the payments.



I am looking for investors who would be interested in purchasing these REO portfolios. These portfolios are not geographic specific.



These properties have all gone through the foreclosure process, which will eliminate any liens on the property with the exception of taxes or water bills that may be associated with the properties. In other words, I do not get a guarantee that the title is clean regarding taxes or water bills. I typically see an average of $750/property that needs to be paid for back taxes or water bills.



If anyone has any interest or questions, please feel free to reply back through this forum.

Comments(16)

  • ypochris19th February, 2008

    My understanding is that this forum has different rules- it is intended as a place to look for the missing piece in a deal. At the same time, you are not supposed to be advertising something or looking for a lender. So it is a tricky balance. I would think that a format of "this is my deal; can you help me?" would be acceptable, but then again I am not a moderator of this forum.

    On the forums I do moderate I try not to be anal or nasty, but I do tend to respond to complaints from other members even when I might have let it slide otherwise.

    Anyway, to the point- a portfolio for under $50K? How many properties constitutes an average portfolio in that price range?

    Chris

  • cjmazur20th February, 2008

    crossing to another topic Michigan, 50K in detroit would be a lot of properties... LOL

  • petepete21st February, 2008

    Do you have any in the Chicago area that are for sale. I may be interested in a purchase

  • jrs21st February, 2008

    petepete, when the packages come in, they are what they are. They are not geographic specific. As you can see in one of my previous postings, they are located throughout the country. That is not a problem though, b/c I have people who I work with who will secure the homes and put my for sale signs up for me. I take the call and screen the buyers on the phone. I never see my houses in person. Nor do I meet my buyers. I now this may sound strange, but it works.

  • petepete23rd February, 2008

    I also have access to REO properties that need rehab. Can do a package deal for anyone that needs properties to rehab in the Chicago area. Average property is 50-75k.

  • jrs23rd February, 2008

    Is the average property $50-$75k, or is that the price for the package? My typical packages average around $3,000-$4,000 per property.

  • jose481823rd February, 2008

    Do you have any in Texas?

  • ypochris23rd February, 2008

    Could you explain your network to secure and sell these properties, including costs?

    Chris

  • jayman7224th February, 2008

    Interested in ny long island area...

  • jrs24th February, 2008

    Chris,
    I purchase these packages directly from holding companies. When I purchase I basically receive a list of properties. I then notify them if I want the package or not. Once I tell them, if the package is still available, I will fund within 24 hours, typically the same day. I will then typically receive my deeds within 30-90 days.
    If I purchase a package of 10 homes, I can expect to receive 2 that will sell for cash, which will typically cover my entire package. I will typically have one that is going to have some issues, i.e.: burnt, high taxes, water bills, etc. Just to be safe, I expect to have 2 per package that have issues, but my experience is to have 1 per pkg. I will then call the various municipalities, counties, utilities, etc., to see what may be due on the properties. The other 7 I will owner finance. I will then collect payments or sell my notes off.
    As I had stated in an earlier post, I do not receive guarantee of clean title. They have all gone through the foreclosure process, though which will wipe out any liens with the exception of taxes or utilities that my attach.
    I then call people I know (which will be available to anyone who purchases any of these packages) who will go out and evaluate the property for me and tell me exactly what I have purchased. They will secure the house and put a signs out that states how much I want down and what the monthly payment is. I have them talk to some neighbors if any are around and ask what rents are on the street. They will then place a monthly payment on the house that is below rent in the area. This way when someone sees the sign, they automatically know that they can buy this house for below what they are paying for monthly rent. The sign people charge me $250/house that they sign for me. They will put a combination lock on the house, and when someone calls, I will get some information about them and if they sound like a suitable buyer, I will give them the combination and let them look at the house.
    I typically charge $500-$1000/house in the package on top of my cost when I sell to investors.

  • jrs24th February, 2008

    I do have two houses in PA right now. Both are in Allegheny County.

    I occassionally get houses in TX, but I do not get any packages that are specifically TX.

  • kelvinr2027th February, 2008

    I am very interested in learning more about the properties that you have for sale. Please let me know what steps to take to find out more information, thanks!!

  • sanfordnsun3rd August, 2008

    Got anything in Southern Louisiana?

  • JohnLocke3rd August, 2008

    Nothing unusual about this post, of course it was deleted, it is not about Deals in Progress.

    jayman72

    1 Posts
    Member Since: 02/24/2008

    trepainting

    1 Posts
    Member Since: 02/24/2008

    sanfordnsun

    1 Posts
    Member Since: 08/03/2008

    jose4818

    2 Posts
    Member Since: 02/23/2008

    Just blatant Advertising...all of a sudden these posters with one or two posts come out of the woodwork and fall right into line with the message in the original post.

    John $Cash$ Locke
    TCI Moderator

  • cjmazur13th August, 2008

    fyi:

    the last link (http://docs.google.com/Doc%3Fid%3Ddhqgmfkx_56fjfq89zj) is broken.

    What is you time frame fore marketing an sales?

  • kelvin_REI13th August, 2008

    Hi, thanks for the reply.

    the links should all work now...

    between 1-5yrs window.


    Quote:
    On 2008-08-13 09:47, cjmazur wrote:
    fyi:

    the last link (http://docs.google.com/Doc%3Fid%3Ddhqgmfkx_56fjfq89zj) is broken.

    What is you time frame fore marketing an sales?

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