[quote=exsdgal][quote=CA renter]
Yes, bundled junk…being sold for 10-20 cents on the dollar. Extremely profitable, and totally unavailable to those who were not well-connected.[/quote]
Are you saying a million dollar property was purchased for 100K? If your numbers are not anectodal I am curious to see a transaction recording. Afaik the bundles were geographically dispersed throughout the US, and to undertake such a purchase one needs a reliable infrastructure/people to minimize financial loss from the transaction. Since the moment a bundle is purchased buyer is responsible for all the mundane expenses like taxes, insurance, maintenance, payroll, office space, etc. I can not imagine a regular Joe capable of handling such a purchase. As a consumer, if I had funds I am happy to find one off deals 30-50% off through online reo auction sites. If you were looking into such large volume bundle purchases, kudos to you. I can understand your frustration about needing connections…. after all in this connected world even to land an interesting job, one needs insider information considering most of the jobs are never advertised.[/quote]
“For example, a pool of bulk properties is put together based on certain criteria such as general geographical location, or other factors such as price range, that the GSE’s might use to put together each pool. In many cases, a pool is likely to be composed of a combination of single family homes located in both the inner city and suburban areas. So, investors will take this into account when considering what price to pay for the entire pool. In your previous article you mentioned investors paying around 20 cents on the dollar. I’d say that might be the best possible price, and would not be surprised if the actual bid price is more like 10 cents on the dollar, to compensate for losses on the ones that will not be renovated.”
This was talked about quite a bit when these bulk REO deals were being bandied about. I knew some people who had very deep pockets (and were fairly well-connected, but not connected enough), and they were locked out of these deals. There was a lot of rotten stuff going on during that time.
