Frank Brunetta NY Says:
October 27th, 2008 at 12:53 pm
Just wanted to chime in on what you’ve got going on here, based solely on my experience and what I gleam from recent coversations I have had with associates on both side of the equation.
I think you might really be onto something with this “sealed bid” kinda system you’ve created. It gives a legit buyer and a legit seller a genuine shot at actually closing a deal without all the BS that generally kills 99% of REO Bulk deals out in the field. To me, the system seems to favor the buyer since whoever submits a bid, it is a number that their due diligence dictates and works for them — not the seller. No matter who wins, they’ve got to be happy.
I’ve been in the REO bulk “trenches” now for about a year. When I first started hooking up buyers with REO bulk sellers, the sellers had the hammer and wouldn’t blink an eye w/o proofing up the buyer first. More often than not though, when it finally came down to getting the deal to close, the sellers turned out to be BS and the deals fell apart. Buyers wasted Hundreds of man hours and many thousands of dollars in due diligence, and not just once. Buyers understandably grew skeptical of any and all sellers and have since stepped up their due diligence on the seller which has further muddied the waters in getting deals to get done. It wasn’t long before buyers started proofing up the sellers and asking to get assurances and references directly from principles or the mandate over the phone.
Worse yet, and this is why I think you’re onto something here, I’ve noticed that lately some of tapes I get for buyers somehow seem to get “pirated” by rogue brokers or agents with no authority to close and sometimes without knowledge of who the source, the bank or the seller is! Maybe there’s just to many intermediaries, I don’t know. These pirates cherry pick and submit these bastardized tapes under false pretenses to legit buyers and everything goes sour from there. It’s a mess, and creates a lot of grief and lack of trust for the vast majority of the legitimate sellers, buyers and the intermediaries playing by the rules and trying to get deals done.
With your bid system, a buyer who did their homework and felt comfortable submitting a bid for X amount per property
(even if the bid is only based on 40% of the properties on the list) if he’s the highest bidder…bingo…the deal (with ALL of the properties in the package) closes and everyone moves on to the next deal. And that’s what this is all about. Doing deals seamlessly and lots of ‘em. Your system seems to be perfectly set up to do that.
So, Kudos to you, I think you’ve found a way to clean up the BS factor associated with REO Bulks and elevate the closing ratio on these package deals.
Looking forward to be a part of some winning bids very soon.
Good Luck! FB