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When banks bundle these prooperties THEY ARE CASH TRANSACTIONS!
You usually have to have several million in cash available before a bank will even THINK about dealing with you.
How many AVERAGE INVESTORS do you know like this?
There are plenty of 'average' investors who are readily investing in these properties. You just need to wait until a 15 day period passes, where the owner occupants get the first crack at it (government homes). Bank owned properties you can bid on immediately, and cash usually wins. I have a realtors license and have sold a few. They don't last that long.
NEW YORK (RealMoney) -- The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors -- vulture funds.
These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.
You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs(GS_) and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.
at least these houses are going to be occupied, rents generated, and taxes paid again
the bad
it will pretty much all be section 8 housing that will be evenly distributed around the country
You got that right. First the healthcare system, then the car companies, then the banks and now the housing industry. The more people on the dole, the more votes. Ugh!!!!!! Can't wait for 2012.
There are plenty of 'average' investors who are readily investing in these properties. You just need to wait until a 15 day period passes, where the owner occupants get the first crack at it (government homes). Bank owned properties you can bid on immediately, and cash usually wins. I have a realtors license and have sold a few. They don't last that long.
i think you are talking about a different program.
Banks have been bundling properties ever since the financial crises began to get them off the books. What often isn't discussed is these distressed properties produce NO INCOME but they still require payment of of property, taxes and other expenses. In other words they are A LIABILITY.
There are no other financial entities in the country capable of buying homes in bulk like large investment firms, private equites, and hedge. People need to keep in mind these corporations are taking a HUGE RISK. In order to make a profit they have to be able to flip these homes to other investors at higher prices in the most distressed housing market since the Great Depression.
How are they going to sell them in say, the ***hole of Detroit with 25% unemployment? No one wants to live there....You cant sell or flip when there arent takers....maybe they could make them into giant hoovervilles though....oh wait they already did that...It will look like west Miami
I hate to say it, but at this point I don't really care anymore. The government got in way over its head and now they have this huge glut of houses. I say sell them off or rent them. Do something to get some money back. It's such a mess that I don't really even see a different option.
That is my point! The government will not talk to a guy who just wants to buy a house our two, you need to come in with hundreds of millions in order to be "allowed" to buy these deals. Did you read the OP article?
In the early 90's they created the RTC to dispose of REO's from the Savings and Loan crash, especially housing in Texas. I remember seeing books filled with houses for sale, one at a time. This should be the model, not helping Goldman Sachs buy low.
Talk to a realtor.
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