Does this help or hurt the investor market and, more importantly, the recovery of the real estate market in general? Or does it just prolong the inevitable?

Federal Reserve Chairman Ben Bernanke supports the national REO rental program saying in a white paper to Congress on this issue that “although small investors are currently buying and converting foreclosed properties to rental units on a limited scale, larger-scale conversions have not occurred.”

He points to three reasons this has not occurred –

• Grouping properties geographically has proven difficult and because of this it’s hard to streamline fixed costs
• Financing is hard to obtain and the REO holders are losing money in bulk sales
• Regulators have “generally encouraged sales of REO property as early as practicable.”

But what happens when the government becomes landlord in chief?

Bernanke says that that because Fannie Mae, Freddie Mac and the FHA are currently holding half of the REO inventory, they “might be able to aggregate enough properties to facilitate a cost-effective rental program in many rental markets.”

Does this just prolong the issue of loss to help the market recover?

The white paper states, “Preliminary estimates suggest that about two-fifths of Fannie Mae’s REO inventory would have a cap rate above 8 percent–sufficiently high to indicate renting the property might deliver a better loss recovery than selling the property.”

That statement doesn’t tell us anything about how long this program will last. It doesn’t tell us the costs involved. Nor, does it tell us what effect this will have on the overall economy.

Sure, more renters will have places to live. But this doesn’t answer the long-term question. And the analysts firms disagree on what’s best, according to today’s HousingWire recap of the topic at the American Securitization Forum.

In Jacob Gafney’s report, Laurie Goodman, a managing director with Amherst Securities said this program “would result in a cottage industry devoted to third-party management of these properties.”

Barclays analysts disagreed and said the program “remains difficult to scale effectively and may not draw as much money as envisioned.”

So what does the white paper say about the success of the program?

• It offers several scenarios for how the program could work, but they also say “no such program currently exists, predicting its success of efficacy is difficult. Ongoing experimentation and analysis will be a crucial component of developing such a program.”
• Most of the properties held by Fannie Mae by “would have a cap rate above 8 percent.” This indicates that “renting the property might deliver a better loss recovery than selling the property.”
• The paper also suggests that home ownership is the best solution to this REO deluge. However, they also point out how difficult it is to get a mortgage in the current economic conditions.

So, what do you think? Would a national REO rental program help speed recovery or prolong it? Should the government go ahead and cut their losses and release the properties in bulk REO packages?

That’s great news for REO investors.

Here’s a video that sums it up.

In the video you’ll see that…

1) The biggest foreclosure dump in history is just on the horizon.
2) Mortgages that have been modified by the bank or government program are REDEFAULTING at a rate of 30% – 50% putting them back in the pool.

Click here to see how you can buy, flip or broker bulk REO with no cash, credit or previous experience.

Carlton has been in the sealed bid, oral auction and REO auction business since 1991. During this time, we have successfully auctioned and sold thousands of properties and loans for greater than $20 billion in sales value.

During the early 1990’s, Carlton was one of the largest auctioneers of commercial, residential loan and REO assets. Carlton Regularly provided auction services for some of the largest financial institutions in the world including, Lehman Brothers, Crossland Federal, Ocwen Financial, Lennar, Goldman Sachs, and numerous other institutional and private sellers. Auction assets included everything from residential 1-4 properties to office buildings. Since this time, Carlton has continued to improve and refine its various auction processes which include oral outcry auctions, online auctions and sealed bid Loan and REO sales. Carlton believes that whatever a client’s sales needs are, they have a proven and proprietary platform that can be customized to best suit those needs.

Today, Carlton remains one of the top loan sale and REO advisors in the country having arranged the sale of almost $14 billion of loan and REO assets. The Loan Sales Group specializes in the due diligence, marketing and sale of performing, sub-performing, and non-performing residential, commercial, and consumer loan asset sales. Carlton’s clients have included investment banks, national and regional commercial banks, mortgage companies, hedge funds, Freddie Mac, insurance companies and various finance companies.

Check them out and get registered for free to be notified of the asset classes you’re interested in at https://www.carltonexchange.com

As I mentioned in an earlier post, Kenny purchased my course back in October 2009 and from what I can tell took massive action and then used the techniques as a basis for his course.

That’s awesome. I love it when people take massive action and experience huge success in anything.

I like to keep things relatively low key. That’s why you won’t see me doing a huge product launch for my products or throwing P.Diddy style parties with red carpets and Ferraris. I’m more of a flip flops and shorts kinda girl.

Up until now, I’ve really taken the high road with some myths that are being thrown out by the marketers that are promoting Kenny’s course. Let’s separate some fact from fiction, shall we?

1. Many are saying in their bazillion emails promoting Bulk REO Trader that “these bulk REO investing strategies aren’t being taught by anyone else.”

That’s obviously false. I have my Bulk REO Secrets course and Duncan Wiermann has a Bulk REO course. Both were available before Bulk REO Trader.

2. I just read one email from a marketer that said his Bulk REO Trader bonus package was “mandatory.”

Huh? Obviously that’s a marketing spiel to get you to buy through his affiliate link.

3. I also just got an email promoting the course that says “I’m going to show you how to make your first million too — and it won’t cost you a cent!”

Um, yeah, but you have to buy the course first so it’s costing you quite a few cents.

OK, that’s enough of that. Let’s get back on the high road.

Here’s my honest opinion of the “competing” bulk REO courses.

For experienced investors who want to learn bulk REO investing and get enough information, training and support to experience success like Kenny then Bulk REO Secrets with its $197 price tag is going to be perfect for you.

If you’re a complete newbie and are looking for more guidance and “bells and whistles” such as the 90 Day Advisor Hotline (not Kenny personally), the Live Seminar, the VIP “P-Diddy” style party, the Done for You Buyer’s List, the Deal Analyzer software and the Bulk REO Trader Insider Network forums then Kenny’s Bulk REO Trader is the package for you.

Ordinarily I, too, will put together a huge bonus package for people that trust me and my recommendations and want to buy the course through my affiliate link.

Not this time.

And it’s crazy, too since I can make a commission of $498.50 to $1,495.50 PLUS $48.50 a month on each sale I make of Kenny’s course. And I make $197 on my own.

So, if I was in this for the money only it would make a lot more sense economically for me to promote Kenny’s course instead of my own!

The problem is I’m not just in this for the money. And I really believe in the value of my own course, Bulk REO Secrets.

I create real estate investing training to add value to people’s lives. Bulk REO investing works, is proven and it WILL add value (and a new profit center) to your real estate investing business.

If you buy my course, you get all my bulk REO bonuses. If you buy Kenny’s course, you get all of Kenny’s bonuses (plus the additional bonuses of whatever marketer’s link you buy through.)

Take a look at the chart above and then check out each course.

Click here for Bulk REO Secrets
Click here for Bulk REO Trader (yes, that’s an affiliate link and I will be compensated if you purchase through this link. But no bonuses from me, remember.)

Then YOU decide which one is best for you. Because really the strategy is the strategy and nobody has a copyright or patent on that.

Whatever you decide GOOD LUCK. And be sure to let me know how it works out for you. I can’t wait to hear of YOUR bulk REO success!

Update
Kenny just changed the Bulk REO Trader offer. The Gold package has been eliminated (?) and reduced the price on the Platinum package to $1,497.

I found a cool site called Private Equity Info where you can search for hedge funds that either invest in or finance real estate.  It’s a subscription based service but it’s really cheap – $85 for 30 days.  The last time I searched, it returned 761 real estate funds.

Here’s a sample record with full contact information and the type of real estate they prefer:

Check it out here: http://www.privateequityinfo.com/demorealestate.php