I recently was on my way to doing my first REO package deal consisting of several hundred of single family, and condos. It was in Southern California, and in sold at $73 Million at 63.5% LTV. The problem is that I was working with another investor on this attempting to find a buyer and get a $500K commission. I called this guy several times for the last two weeks, and he finally responded to me after ignoring my calls, and e-mails. Unfortunately, due to not being able to contact this guy, the deal went under contract, and I lose the chance at a great deal. I know that many REO packages in California, especially in Somerton are highly in demand.
I know the only way I can make some money is if I
a.) Buy them myself
b.)Find the sources so that I can sell them myself
But lets be realistic, you are not just going to go to bank, and say hey I like to buy some REO packages, the bank would probably think that I was insane or just stupid.
I need help to be able find the direct sources for REO packages to sell. I am also very new to this business, and wanted to know if I could assign REO packages, and collect an assignment fee, instead of a commission for a few multiples in the 100K range?
If I were to get an REO package under a contract for a certain amount, would I be able to assign that contract before closing, and make the difference in profit?