Here we go again (Low low down payment)

[spdrun]

Also, a lot of the bulk sales were bundled junk. Things like houses in partially completed developments in lizardia, or bundles of a few hundred houses in unknown condition, questionable titles, etc.

[CA renter]

[quote=spdrun]Also, a lot of the bulk sales were bundled junk. Things like houses in partially completed developments in lizardia, or bundles of a few hundred houses in unknown condition, questionable titles, etc.[/quote]

Yes, bundled junk…being sold for 10-20 cents on the dollar. Extremely profitable, and totally unavailable to those who were not well-connected.

[Anonymous]

[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]

And it’s not just real estate. For example, grocery stores pay only a fraction of what they charge consumers for a can of beans.

Extremely profitable, and totally unavailable to those who do not buy in volume.

[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.

[spdrun]

Should be interesting — Dear Leader is talking about cutting FHA insurance fees by from 1.35% to 0.85% this year tomorrow.

Yay for more unqualified buyers.

[CA renter]

[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.”

Bulk Sales Of REO Properties From The Investors Perspective (part 1)

———–

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.

[FlyerInHi]

The Revel casino in Atlantic City cost $2.4 billion to build. It was auctioned off for about $95 million (bidder is suing to have the price lowered).

New Jersey’s pension system has $300 million in it.

Chris Christie gave the casino $260 in tax rebates. Plus there was another loan for $40 million.

Total from the state at least $600 million.

That said, the value of a property is what buyers are willing and able to pay at any point in time. Peak valuation has no bearing on present value.

[CA renter]

[quote=FlyerInHi]The Revel casino in Atlantic City cost $2.4 billion to build. It was auctioned off for about $95 million (bidder is suing to have the price lowered).

New Jersey’s pension system has $300 million in it.

Chris Christie gave the casino $260 in tax rebates. Plus there was another loan for $40 million.

Total from the state at least $600 million.

That said, the value of a property is what buyers are willing and able to pay at any point in time. Peak valuation has no bearing on present value.[/quote]

Crazy stuff!

[spdrun]

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