Bruce Norris speaks at SDCIA Meeting

Title: SDCIA Meeting
Location: Scottish Rite Mission Valley
Link out: Click here
Description: Bruce Norris: 12 Reasons You DON\’T Sit On Your Hands in a Downturn
Start Time: 18:00
Date: 2008-12-11

The Norris Group purchased over 20 REO properties in 60 days. The lender took a 69% hit on these foreclosed houses!

Bruce will give the top twelve reasons why you don’t sit on your hands in a downturn.

From the Talk:

By sitting on the sidelines, you rely on other people for first hand knowledge. Because I’m in the trenches everyday as an investor, I know things you couldn’t possibly know. I know the lenders have just about given up on things. They are walking away from REO properties, giving huge discounts. I know the lenders have radically changed their approach to investor offers just in the past 60 days. How do I know that? The answer is because we continued to make offers; even when they “knew” it wouldn’t work.

I’ll give some specific examples of REO deals we’ve purchased and the negotiation that went on between us and the broker representing the bank lender. I’ll update which auctions are producing results and which ones to avoid. Our little pile of REO properties will produce about $350,000 of net profit. When we sell these rehab properties, we will have comparable sales that will establish where the upper limits are for price. The wholesale purchases we made will establish the lower limits of value for REO houses. By being active, I don’t have to rely on anyone to tell me what something is worth.

As a buyer, you go from:

I’m uncomfortable with the market to…
I understand the market to….
I am the market

When you control the destiny of 20+ properties, you become the market!

And don’t forget investors create wholesale and retail comps for each other to use in offers. Everyone has been having trouble getting lenders to accept their offers on foreclosure homes. Well, the day’s of begging for REO discounts is over!