Skip to main content

Three Rookie Mistakes of Bulk REO Investing

Mistake 1

Not Recognizing "Daisy Chains"

Unfortunately in this business you will encounter a collection of never ending daisy chains of "brokers" and self proclaimed "mandates" consistently misrepresenting a product that they do not control nor have the proper authorization to advertise or sell.

Only through training and experience will you be able to recognize these clowns of the business within 2 minutes of being on the phone with them. You will learn early on that it is not about finding the deals, but learning how to spot these clowns and get off the call as fast as possible.

These people who obviously have nothing else better to do will be your downfall if you do not learn early how to get pass them and on to the real product source, which is the most difficult point to locate.

Mistake 2

Not Performing Due Diligence

Any time you are investing you need to run a thorough due diligence to make sure the numbers make sense.

This is the main cause of failed stories about investing in this industry. The slightest mistake can empty your pockets in the blink of an eye; This is why mentorship and training prior to investing is crucial in this business.

Hire local Realtors to run your BPO (broker price opinion) and establish real market value with updated figures for today's Real Estate market.

A lot of newly formed hedge funds find themselves guilty of this cruelious mistake. They let ruthless sharks that have been around for a while talk them into buying a tape which is either full of garbage assets or over price.

Mistake 3

Not "Cherry Picking"

This has to do more with being affiliated with a real source or company that will give you access to their product and then cherry pick from their lists or properties.

Instead of waiting for that "home run" of 100 properties, you can work on those "one base hits" by cherry picking one property at time from a tape. Rehabing and selling these one at time…

Read More…. by Ray Piel C.

Finding Real Estate Deals Just Got Fast & Easy With this New Search Engine Built for Real Estate Investors & Wholesalers

The post Three Rookie Mistakes of Bulk REO Investing appeared first on Note Investing Seminars.

Labels:

Comments

Post a Comment

Popular posts from this blog

What Is a Promissory Note? What Are They Used for?

A promissory note is a written contract between parties-a borrower and a lender– signed by the borrower. It contains an unconditional promise to pay a certain amount of money on demand, or in installment payments over a period of time. It is used in a financing transaction – a lending transaction. The individual who promises to pay is the maker (borrower), and the person to whom payment is promised is called the payee or holder (lender). The loan transaction can be secured or unsecured. A secured loan has specified property pledged to cover the repayment if the borrower defaults on making the payments. Another form of collateral security is a co-signor. A co-signor, or a guarantor, is a person who agreements in writing to repay the debt if the borrower defaults. This means that the holder (lender) protects his financial interest by using the maker's collateral security or the maker's co-signer. If the maker fails to pay according to the agreement, the holder can foreclose on...
Post a Comment
Read more

Promissory Note Frauds and Tricks

I have been actively engaged in the promissory note business for over 40 years. My and my wife’s self-directed IRA accounts have been invested in notes for the same length of time. My note investments have been the foundation of my estate building. Because I believe that promissory notes can be an excellent investment vehicle for the average investor, I try will try explain what they are and how they work. But, I will also point out that notes can be misused and abused by dishonest people and by ignorant people. This article is the first of several articles in which I will attempt to inform the average investor about the benefits and warn the average investor about the detriments of investing in notes. Obviously, there is no perfect investment. Just as cars do not injure and kill people (bad drivers do), promissory notes do not trick and harm people (dishonest or ignorant sellers of promissory notes do). What Promissory Notes Are: Generally, promissory notes are a form of debt simil...
Post a Comment
Read more

5 Steps to Becoming a Master Investor

Diversify – Diversification is a powerful investment tool that helps you reduce the risk of holding aggressive investments. Diversifying simply means that you should hold a variety of investments that do not move in tandem in various market environments (for instance bull and bear markets). You do not need 50 different funds in order to diversify. You can diversify with five, at the most 10, mutual funds or ETFs. Keep fees to a minimum – For both mutual funds and exchange traded funds you can look at the 'total expense ratio. "The best case is an expense ratio less than 1%, and certainly no higher than 2%. have to watch out for "sales load". Be aware of your time frame – Match your time frame to the investment. For example, for money that you expect to use within the next year, focus on low-risk investments such as money market funds, certificates of deposit or US government bonds. Ignore the "gurus" – Pay no attention to the fortune-tellers and pro...
Post a Comment
Read more