Inventory of Bulk REO Homes from Bank of America REO Department
Bulk REO properties are basically repossessed homes sold in wholesale or bulk tracts. Among the real estate investors these packages of reo properties are referred to as bulk reo tapes. Bank of America, being one of the biggest holders of REO inventory, offers bulk reo purchase deals to pre-screened investors and REITs.
Bank of America bulk reo inventory is not commonly accessible to most investors, except those that have demonstrated the necessary financial resources and wherewithal needed to successfully close such large real estate transactions. The bulk reo packages and listings are eagerly sought by large real estate investors in search of big bargains.
By participating as a member of a large group of investors, even small investors can try to be part of bulk sale packages offered by REO holding banks. In a typical bulk REO sale, a large number of REO homes are pooled together and sold, usually at substantial discount to their market value. This prospect for profiting from buying undervalued properties is one of the reasons for the constant and consistent demand for Bank of America's bulk reo deals.
Bank of America Bulk REO Transaction Process
In bulk reo transactions, the seller's prime motive is to reduce their inventory of unsold repossessed properties. They offer big discounts to those buyers and investors who can muster the resources to close on such large real estate transactions. Selling in bulk allows Bank of America's REO department and asset managers to save on commissions, brokerage fees and advertising, the various costs involved in a typical REO home sale. As this process saves time, money and effort for the REO owning entity, investors, justifiably, demand lower purchase price.
REO owners, who are also the sellers in a bulk reo transaction, usually try to club bad properties - those that have a very low chance selling - along with good properties. As most of the properties included in a bulk reo deal are chosen at the discretion of the REO seller, the buyer or investor may not be able to pick only ones that they deem to be good deals , and therefore, worthwhile.
Upon the closing on a bulk REO deal with Bank of America, the investor or bulk purchaser can choose to sell the properties one after or another as dictated by market conditions and individual circumstances. Even when there is a large of amount of rehab work to be done on the bulk reo homes, investors can count on economies of scale. All the building and rehab materials such as paint, timber, wood, carpet and paint can be bought in a large quantity, which allows the buyer to avail steep discounts. Investors with the necessary financing can be reasonably expected to realize nice gains on their bulk reo purchases from Bank of America.