OfflineFrom my experience, REO tapes are something everyone should just forget about pursuing. Almost all of them are illegal and/or don't exist and/or too complex.
From my perspective, here are some of the reasons why these deals never actually work:
1. Buyer Misrepresentation (You never get to talk to the principal, you always talk to "his rep")
2. Seller Misrepresentation (Seller is always hiding (shielded) by multi-layer of brokers)
3. Buyer fails to provide POF (**** POF used)
4. Tapes are fraudulent (no way to verify any property to know if they are real)
5. Everyone promotes a NCND (This is a first sign of a **** deal).
6. Everyone promotes a Fee Protection Agreement (This is the second sign of a **** deal)
And think about it: The banks generally go through their normal avenues of disposing of REO Assets via asset management companies. They have the time and money to send it to a Realtor and let him try to sell it first, before taking a greater loss on it.If it hasn't sold by their normal channels, you can pretty much assure yourself it is nothing but dog dirt that is left.
Also, most "tapes" that are sold are comprised of securitization loans which need SEC licenses and registration because they are a pool.
I know it seems glamorous to think you can be part of one of these deals; but your wasting your time and most likely, setting yourself up to get scammed.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Bill a few months back I went to look at a house someone said they had for sale,when I got it was burned out. I met a young investor there that just came from Boston to see the deals he bought from a broker off of these tapes,he bought 27 properties he said yeah I got a great deal until I got here yesterday. He had already went to 14 of them and he said so far they all were crap and half needed to be torn down. That's why I want to see the stuff I buy.
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
Yes, you can buy them, but I call the banks. It may take a while to get through to the person who actually handles it, but they are there. What I've found, is that even the customer service reps have no idea that such a position exists. I misplaced the pad with the number for a gent and the csr kept telling me that I had to go to the website and deal with the realtors for each individual property. Anyway, I found the pad, and called the gent. He actually called back last friday and left a message that they currently don't have any tapes or pools prepared, and to check back in 60-90 days. This is real.... BUT, so are the fakes....
DC Terry,Sr.
I totally agree with you. These things are never real. People that have $$$$ and lots of knowledge and organization(syndicates)buy actual bulk REO deals long before anyone sees them!
In other words, If you aren't Donald Trump, you are getting left over trash!
Stick to single REO purchases I say!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Michael, you don't need that much to purchase these. I've not had many of them, but they have come across my desk through out the years. So I know that they are real. I've not had the issue of them being trash. There's a company out of DC that purchases them,(min $2mil) but the last one that was presented to me was just too spread out for them. Until now, I just never really considered contacting the banks myself, because I was mainly focused on providing financing instead of using it. I will say again, that it's hard to get to the decision makers, and you have to be 1st. (agreeing with what you said--relationship matters) I've seen a lot from my end, just finally starting to put it all together.
I wouldn't advise that someone drop everything for that alone though.
Also, 90% of the time when the phone rings with someone, who knows someone, who is direct to the bank rep, it just takes about 10 secs to shut them down. They don't even have a clue to how it works. So in thoses cases--No, it's not real at all. I never could quite understand why someone would spend so much time and energy lying.
In essence, I know that they are real, BUT I go after regular closings because I can see the property that I'm buying, and they are just easier to close on.
DC Terry,Sr.
I tried following it as a buyer rep, intermediary and seller rep and in 1 yr., i got no money and nowhere. For those who r thinking about doing it, don't. It's a waste of time.
***
From my perspective, here are some of the reasons why these deals never actually work:
1. Buyer Misrepresentation (You never get to talk to the principal, you always talk to "his rep")
2. Seller Misrepresentation (Seller is always hiding (shielded) by multi-layer of brokers)
3. Buyer fails to provide POF (**** POF used)
4. Tapes are fraudulent (no way to verify any property to know if they are real)
5. Everyone promotes a NCND (This is a first sign of a **** deal).
6. Everyone promotes a Fee Protection Agreement (This is the second sign of a **** deal)
And think about it: The banks generally go through their normal avenues of disposing of REO Assets via asset management companies. They have the time and money to send it to a Realtor and let him try to sell it first, before taking a greater loss on it.If it hasn't sold by their normal channels, you can pretty much assure yourself it is nothing but dog dirt that is left.
Also, most "tapes" that are sold are comprised of securitization loans which need SEC licenses and registration because they are a pool.
I know it seems glamorous to think you can be part of one of these deals; but your wasting your time and most likely, setting yourself up to get scammed.
I see that this site appears to be filled with those of us who have been agressively seeking after financial freedom. It's great to come some place that you're not the only one who's been around the block a time or two.
I can only imagine what other ventures we may have in common.
DC Terry,Sr.
Can you please explain to me what these Tapes are?
I've been seeing a lot of adds in Real Estate networks I'm in asking for Tapes, and I'm not sure at all what they are talking about. And there's lots of talk about them, so I'd like to know what they are.
Thanks!
The Browley Team
Working Towards Success!!
it is a large group of homes that are being sold en masse to a buyer. These homes can come from one lender or can be assembled from homes of multiple lenders. Usually, these homes are sub-par homes as the good ones have already been picked up by investors on an individual basis.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...
I have a connection with REO tapes in southern Florida. Properties can be picked up for $20-200K @ 55% Conservitive ARV already repaired and most already rented. Properties can be picked up individually or in bulk for steeper discounts. I found that if you have a real POF they will work with you.
Cheers,
D
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that an official coach would place a post offering REO tapes on this thread that was based on the premise that REO tapes are crap. Does anybody actually read these threads and/or wouldn't the post be better served in the classified ad section??
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Reading is overrated.
Nevertheless, I noticed the irony too.