InnoVest Resource Management's Foreclosure Forum

Discussion Board Foreclosure Training Title Holding Trust Speaking Schedule Foreclosure Codes 50 State Foreclosure Basics Foreclosure Glossary 60+ Yrs Interest Rates News & Trends FAQ Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: In one sense, it is. Posted by Jim V on March 18, 2002 at 5:23 PM In Reply to: Why isn't foreclosure posted by Sean Wagle on March 17, 2002 at 11:44 PM : I've never heard of firms in the foreclosure/fixup game which are analagous to CarMax, AutoUSA, Ugly Duckling in the auto auction game. Is there something about foreclosuring which limits the effective size of the business model? : Or is it the opposite? That there are representatives of "big" foreclose-and-repair firms at most courthouse auctions? I would guess the smaller bidders resent these types if they exist; they'd have deeper pockets and drive up the bidding. : It just seems logical to me that "if there's money to be made in foreclosures" that there would be established players in it, who have scaled up to a statewide, or nation-wide scale. The large players in the foreclosure game buy before the sale. They will buy large portfolios of non-performing loans at significant discounts. Some of those loans will be turned into performing loans, some of the properties will be purchased by third party bidders at sale, the properties that end up REO will be rehabbed and sold at retail prices. The portfolios will often be in the hundreds of millions of dollars with the security spread over many different states. That, I'd say, is the big leagues. Follow Ups: Re: In one sense, it is. JD 6:47 PM, 03/22/02 (1) Re: In one sense, it is. Jim V 10:48 PM, 03/22/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I've never heard of firms in the foreclosure/fixup game which are analagous to CarMax, AutoUSA, Ugly Duckling in the auto auction game. Is there something about foreclosuring which limits the effective size of the business model? : : Or is it the opposite? That there are representatives of "big" foreclose-and-repair firms at most courthouse auctions? I would guess the smaller bidders resent these types if they exist; they'd have deeper pockets and drive up the bidding. : : It just seems logical to me that "if there's money to be made in foreclosures" that there would be established players in it, who have scaled up to a statewide, or nation-wide scale. : The large players in the foreclosure game buy before the sale. They will buy large portfolios of non-performing loans at significant discounts. Some of those loans will be turned into performing loans, some of the properties will be purchased by third party bidders at sale, the properties that end up REO will be rehabbed and sold at retail prices. The portfolios will often be in the hundreds of millions of dollars with the security spread over many different states. That, I'd say, is the big leagues. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2002, InnoVest Resource Management

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455