So, as we all know the market is not up to speed and, frankly, considered a bit slow. However, there are these usual suspects called, the Rainmakers, who are getting ready for a storm to hit.
Buyers of REO properties have been sitting on the sidelines waiting for a great deals to pop up and they pounce on the slightest glimpse. This waiting game is excruciatingly exhausting, and can make or break real estate professionals all around the world. There are deals happening, but they are few and far in between. When, and if, you find yourself in the middle of one, you must on hang on tight and do everything in your power to make it work out to everyone’s benefit.
That brings us to the ‘who’ is making these deals happen in this market: that is where the RainMakers come into play.
There are about 10 individuals who make this REO/Asset/Equity market run, day-in and day-out. Most are from the east coast but cover asset management from 200M to 20B worth of assets. Those assets do include debt, so let’s say half of that are actual property based assets. That leaves us with about 10B worth of properties that are looking to be disposed of within the next few years.
REO buyers are trying to figure out who these guys are and how to get in touch with them. Well, for starters, there is a laundry list of gatekeepers that you will need to be on a first name basis with to even get a chance to talk with these guys. Smaller buyers will get close, but most likely will not be directly in touch with the RainMakers. They will, however, be able to get the second-hand discounts.
Today’s maketplace for second-hand discounts lay around the 65-75% range. The RainMakers, just to give you a comparison, are buying and selling at around 20-35% range.
You can find all about these special RainMakers and what they are doing here.
Or you can give me a call and I can tell you how to get ‘in’ with them (wink, wink).