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.

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Three Rookie Mistakes of Bulk REO Investing published first on http://www.noteseminars.com/
Three Rookie Mistakes of Bulk REO Investing published first on http://www.noteseminars.com/