There are no 3 to 5 properties to be purchased in bulk through banks, but through the investors who have bought them in bulk. As mentioned before, banks who have done limited residential financing might have smaller numbers come up in bulk but that is like finding a needle in a hay stack.
You can still find smaller priced properties since the inventory keeps being filled by new foreclosures.8% plus cap rates are valid expectations.
Some Scottsdale property priceshave already leveled. In some cases I do not see prices going down.
Go Ducks (sorry they lost)

Josh,

The time is right now to buy property in AZ. Foreclosed homes that are in decent condition and price are being snapped up by investors. If they are junk, they sit on the market or get auctioned or bulk packaged. By the time you finish repairing them and making them livable you should have paid a little more and purchased something ready to go for quicker less costly cash return. As an agent and an investor I'm buying now and choosing wisely. I cannot predict the future nor can any of my peers if we could we'd all be rich! If you want a "good deal", buy now, don't wait.

My website below has live IDX link with the Multiple Listing Service that agents use. Feel free to search on it to get a feel for what types of properties are available in your investment price-point.

Good luck,

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
Homesales411.com

My partner and I have been working with our investor clients in the west valley this past year as the cap rates have still been pretty strong. They are getting from 10-12% on their cash purchases. We like certain communities only in each city and try to concentrate on those communities that have proven to have good track records for quick rentals. We only concentrate on homes built in 1998 and later as there seems to be less issues to deal with. Most of the homes are in the price range of $60,000 - $84,000 and rarely go under $50,000 as we want areas that will eventually appreciate better. The rental income on these homes runs from $800- $1000 on average. Of course there is no telling what the market will be like 24 months from now, but we check the statistics of each area monthly to watch the trends. There is a great service called the Cromford Report that is offered to agents which we track the stats from and send updates out to our investor clients on a monthly basis. I also like zip codes 85083 and 85085. The homes are a little higher there, but a great area and good schools and the homes rent out very quickly. A decent home will go for $120,000 - $135,000 there with a rental income of about $1200-$1400. If you are buying for yourself, I would recommend a few other areas depending on your price range.

We would be happy to discuss strategies with you anytime.
Good luck,
Lorrie Feld
lfeld@azrealtygroup.com
480-570-1074

We had some investors looking at purchasing in bulk from a couple banks, but once we received the list which showed the addresses, we advised them not to purchase as only a few on the list were good buys, there were many on the list that I could not recommend them paying that much for the properties. All in all the investment would have been bad. We moved on to other purchases. These are usually very large lists of properties. I have yet to see one worth purchasing this way.

There are many properties you can pick up and rent out as an investment, and purchasing a home for yourself will be easy to pick up a great deal. Our market could possibly get a little lower, but I don't think it will drop much even if it does. It is a speculation of course. We can also set you up with property managers. If find the feel very reasonable.

Hi Josh, if your a cash buyer and you are only looking for 3-5 properties your best bet is buying wholesale at the trustee auction sales. I work with investors daily buying at the trustee sales. Some flip them and put them back on the market and move them quick at top resale value while others are holding as rentals. Right now I have several Canadians with cash doing this as we speak. If you are interested contact me directly. My office line is 480.270.5222 and my email is sreiter(AT)remax.net. Look forward to hearing from you.

Oh PLEASE Josh, watch your back. And don't take any wooden nickels.

Bank do still sell properties in bulk (pools). Typically a small pool would be 5 million and an average pool is around 50 million. These transactions are all cash. The discount doesn't currently work out to be that great of a deal though. Percentage wise you can currently get a better deal buying individual REO properties. If you have any questions you can reach me at (480) 421-9751.
Tom Chase, CEO TJ Chase Realty Group

Josh,
I haven't heard anything new about the banks offering bulk sales. They have found that they can make more money selling them separately. My partner and I have been working many investors and they are all buying separate homes in "bulk" through the deals we have found for them and have realized a very profitable return on their investment.
If I hear otherwise, I will post it here.
Let me know if I can help you.
Lorrie Feld
Keller Williams Integrity First Realty
lfeld@azrealtygroup.com
480-570-1074

THe last I heard of, this is virtually impossible. At a time, banks were offering tape at 50M and higher which I assume you don't have. I have been contacting some banks and REO agent for pocket listings at 30%+ discounts. If you wantto give me your info, I would be happy to get some property for you.

Jason E Whaley
480-254-6464Cell/Text

It can be done but as always depends mostly on your network communication to an asset manager.

I'm currently looking for an answer to this question if anyone still has a line on bulk Portfolio's for sale please send me an email. arrowzona@gmail.com (don't want to give out my professional email) Thank you!

Some lenders have multiple property guides that will allow you to finance up to 10 properties. Typically you can obtain 5 loans form one bank up to 1-2 million dollars in sum. Hope this helps.

Hi Josh,

I have five REO listings that fit this category. Please see the offering on Loopnet: http://property.loopnet.com/17053420

Call if you are interested.

Jay Emerson
916-517-9606
DRE#01788488

I have set-up deals like this with a investor client of mine. She was able to buy a bulk of REO properties from a local lender for a discount. I think that this is a great time to do this type of investing. REO properties show as a bad debt on the books for many banks. Banks are eager to get REO properties off their books. Also, a bank has to pay Realtor fees for each seperate REO sold. Buying in bulk saves the bank thousands in Realtor fees. Many banks don't realize the benefits of bulk buying. The deal must be negotiated carefully. Good luck to you. Call me if you have quetions.

All good feedback! I think this Q & A has served its intended purpose. Its encouraging to see that people are willing to help and motivated to work! That speaks well for all of you that have answered wholeheartedly! Thanks to all the responses I'll keep you all in mind or get in touch with you individually when the time is right... which is hopefully sooner than later.

Wow, boys and girls, this thread is about to go viral! :) What do you think, Josh?

I wish I was still a student! When I said 3-5 houses I meant individually. I keep my shopping amounts private but I will give out a range. I asked about cap rates to hear your feedback and I can usually establish most of my numbers with that. Anyway, since I am not super familiar with the area I thought it would be best to ask some professionals and get some professional advice. I'm not saying that I will work with anyone on this site and I'm not saying I won't but I have many more questions mainly with variable market conditions like local price averages for purchasing and renting, areas that have higher occupancy rates, property management fees, broker fees, the general condition of the market, and the opinion of the local professionals on market stability (that is why i asked if you thought the prices would be higher or lower in 24 months). I think that reading about Arizona online and being on the ground are two completely different animals. I am interested in the area because I've heard the cost of living vs ave income is very good and it may be closer to the bottom than most areas of the country. I have also heard despite the depression we are in, the job outlook is good when compared to other parts of the west....Oh and I live in a place that rains 44 inches annually vs 11 or less where you live...and last is opportunity for children, I have 3 kids and like the idea of a much more culturally diverse area than where we live currently.

So I hope this clears things up about my position and questions, that being said communication online is not my strong suit, if you are still interested in answering my questions thank you and I will be in touch.

Hey Josh, would you care to tell us exactly how much cash you have to invest? Your questions seem more like questions from a College student working on a senior thesis, and I'm just curious as to the numbers you're talking about.

Thanks for the responses. I don't have 5 or 50 million but I do have some cash. I'm thinking since my gut feeling told me bulk purchases would be difficult and it seems that most of you have affirmed, the idea of starting with 3-5 to start sounds much better. I am out of state but am considering a move to Arizona in the next 24 months. Do you guys think the 3000-4000 sf homes in Scottsdale will be higher or lower then? Also how long do you think the $25,000-$50,000 3bd 2bth houses will be that cheap? Last question what is an conservative estimate for cap rates on these cheaper homes? My guess was 8-10%???

We have worked and are still working on bulk purchases. Smaller banks might have smaller number of properties as bulk but major banks will look at bigger number of properties. Let me know if you are interested.

Gotta love the folks that ALWAYS have a secret decoder ring.

I have some contacts at a few banks that may be of interest to you...?

Buying wholesale requires volumes of cash for bulk purchases. If interested I can connect you to the liason between the banks. Email and let me know if you are serious.

In your dreams, Josh! These market conditions are definitely not conducive to bulk deals, much less quantity discounts. Nice idea, though!