Bulk purchases, buying a pool of homes


#1

Where do I find out about buying bulk sales of homes from banks,servicers? Have client who wants to buy 20 or more at a time.


#2

Hi Steve,
Fannie Mae and Freddie Mac both have bulk sales departments but expect to put together the equivalent of a business plan in order to purchase a block from them. They typically want you to buy and hold for a period of time so that the properties are not simply “dumped” back on the market.
Most recently auction.com has started selling bulk note sales but you will find that most bulk packages do not allow you to “cherry pick” the properties. You bid on the block which may include some good deals and some not so good deals.
Last year I attended a seminar put on by Geraldine Barry President www.SJREI.org. She had a panel of investors (including herself) that purchase bulk properties. Keep in mind that most of these packages typically include properties from a variety of states ans rarely properties in CA. Although the concept of buying in bulk sounds great I was amazed at the complexity of this process and the low profit margins for the amount of work/risk involved.