As with most purchases in life, whether it's for candy or real estate, you will usually get a better deal by buying in bulk. Because there are so many foreclosed properties on the books of lenders, many of them are packaging properties together for large investors and offering volume discounts. This saves the banks time and gets more properties off their hands quickly.
Those who are buying in bulk are either investors who are seeking a massive rehabilitation of houses and have the money to fix up numerous homes, or are developers planning on buying up blighted property, tearing it down and then building something in its place, like a shopping center.
It shouldn't be new news that foreclosures have hit an all time high in the United States, which has scared off many investors, but to savvy investors like us, it simply means everything just went on sale. We typically will see volume discounts of eighty to thirty-five percent of value.
However, because these volume purchases can be so large it is usually cost prohibitive for the average investor to get involved.
We either sell the home outright to local investors or on contract to those who need a place to live.
California, Florida, Nevada and most rust belt cities in the midwest are where you will see most of the bulk foreclosures deals. In some areas, there are entire neighborhoods of new homes that have not even been occupied because the developer went bankrupt. Those who believe that the market will rebound and want to hold onto these homes for future potential can consider buying them in a bulk deal and save even more money.
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SMALL BUNDLES AND SINGLE PROPERTIES
Although we offer single properties, we do recommend purchasing at least a small handful of properties at first. We recommend this to spread out your risk, we'll explain why in a moment, and because we have properties available for around $5,000 a piece it's usually not too difficult to get a few at a time.
If this is your first purchase of foreclosures, we recommend you acquire at least a small handful of properties to spread out your risk, for example:
We have always worked on a "Third, Third, Third" rule.
- A third of the properties we get cash-flowing or have moved quickly, without much time or effort.
- A third of the time it takes some effort and up to a few months to get a return.
- And a third of the properties can honestly be quite a hand full and take several months to get a return, or we may end up sitting on it until an opportunity presents its self.¹
OCCUPIED, CASH-FLOWING PROPERTIES
Because we've moved or sold on contract over 3,000 properties in the last two years, we are now offering some of our already occupied and cash-flowing properties to those who may be interested in investing in real property but don't have the time or desire to deal with the stresses of getting a property returning a profit.
We're going to sweeten the pot even further by offering a one year occupancy guarantee on these performing properties. So if the property goes un-occupied for any reason during the first twelve months of your purchase, we will get that property re-occupied and cash-flowing again at no additional cost to you.³