In twelve to eighteen months, you won't be able to buy these types of portfolios at these types of discounts
Past News ReleasesRSS
Phoenix (PRWEB) December 20, 2007
Shannon Connely, with LuxuryPhoenixHomes.com (http://www.luxuryphoenixhomes.com/)], LLC, says right now is the time for a bank REO or other REO properties. He works with others putting together and selling portfolios of foreclosed, or REO properties. Principals, who are spending millions or more for REO portfolios, will find some of the best deals in residential and commercial real estate, especially properties designated bank REO, in the last twenty years.
With the "meltdown" of the subprime mortgage market and distress for other types of residential real estate, the herd mentality has almost all investors running away from this market segment, creating unclaimed REO properties. Shannon's advice is, "before running in the opposite direction, take a look at the returns that are in the current marketplace."
And the returns for bank REO and other kinds of REO properties can be exceptionally rich. A custom portfolio in the $100 million range could be purchased for a whopping 20-40% discount from BPO value. Thus if a portfolio consists of bank REO or other kind of REO properties with an average BPO value of $200,000, a 45% discount would mean an investment of roughly $110,000 for that $200,000 home. A purchased portfolio in the $10 to $20 million range, might garner a 20% to 40% discount. Portfolios can be constructed from loans in different marketplaces (to minimize risk) and most investors hire outside management companies to manage and rent the properties or arrange for resale. Properties can be purchased with no maintenance needed or with light, medium or heavy rehab work needed, and from starter homes to luxury homes to commercial.
Portfolios are assembled from the top banks, investment companies, and mortgage companies around the country and are available for practically every marketplace in the country. Of course with this type of bank REO program, investors must move quickly with a due diligence period of only 3 to 10 days to make a decision on the properties in the portfolio.
Shannon Connely for many years has marketed homes in the Scottsdale Arizona area. He specializes in international real estate sales to investors around the world. He started working in the large residential/commercial portfolio area several years ago and has put together the contact information and procedures necessary to buy big portfolios of REO properties. Shannon likes to sell $100 million dollar portfolios to wealthy investors around the world, but also serves investors of more moderate means. He also says that returns from bank REO holdings won't last. "In twelve to eighteen months, you won't be able to buy these types of portfolios at these types of discounts," he says. Contact him at (602) 405-3809 for more details about this type of investment.