All Forum Posts by: Robert Burns

The main cause for the Great Depression was the combination of the greatly unequal
distribution of wealth throughout the 1920's, and the extensive stock market speculation
that took place during the latter part that same decade. The unevan distribution of wealth
in the 1920's existed on many levels but the great wealth that some attained, like those in
the movie industry, was by nickel and dimeing the general public. See any of that today?(sigh)

Investing is based on a particular investors perception and no more.
Following the herd is what most people usually confuse it with.
In this secondary reo market the benchmark is buy cheap above all else.
A.H.M.'s reo's are going to be auctioned off starting this week and I
know that the lowest bid will be a lot higher than most would normally pay.

If there's a second round, who will be left in it, those who perceive what
others don't? If they're right, they could become an entirely new market but
if they're wrong, depending on what's being auctioned off, they'll take a bath.
Starting with a bid approaching prime is greater risk for the greater gain.
No matter how you look at it, investing is Poker without the beer and smokes.

Consider politics, that appears to be part time
with great benefits also.

Word is that reo's can be had at 55 or less. Brokers tell me that all the time.
Sent an email this morning offering 2 billion for their stock to one of the places
mentioned. Bayview's big but let's see if they'll sell at 55 or if they can sell 2 bil..

I don't do real estate and find this secondary market of reo sales intriguing.
Do you really think you'll make a buck demanding this kind of discount?
Maybe you do but I don't see how. Did The Addams Family live there before,
is it a dog house? What warrants 55 cents on the dollar aside from some poor
mortgage lender going under? That's predatory, is that what this market is about?

Think about this, Citigroup sells at list and that's market value or 92 cents. No
dog houses so I guess the flippers stay away but why would Citi hang onto all
of those houses? Because they sell them one by one at list and that's the way
houses are intended to be sold and people buy them.

I stand corrected, I do know how you can make a buck. You reefer people to
other people. Has nothing to do with selling a house but building a chain to the
investor. How many people are in that chain determines what cut you'll get but
how much can that be?

If Bayview can service the offer made I'll let you know about it.

The Mortgage Industry = the Finance Industry and you get into the game
using your own money or someone else's. Err, an awful lot of it.
What specifically interests you?

Portfolios of discounted commercial mortgage notes are available
but you're talking big money and that money and the investor will be
thoroughly scrutinized.

You'll be running with the big dogs who consider 80 cents on the dollar
a fair price to charge. Getting a 300 million dollar portfolio for 280
should leave room for a good profit; wouldn't you think?

Sure you'd think but if you already haven't got the resale set up, you now
hold 280 million dollars worth of headaches. Drop me an email and we'll
talk about it.

Don't know if I'll fit in on this interesting board as I don't deal in selling or buying real estate.
What I do is buy commercial real estate notes. Quite large real estate notes in the 50M league
and above. Not a broker or anything like that so, please don't run for the hills yet and let me
explain how we might work together.

I'll look at just about any commercial property or land deal and am fortunate enough to afford it.
If a bank that holds the note says the price is 500M, 500M it is and whoever leads me to it will
get a piece of the profit, something like $125,000.00. That example's beyond your reach but it
does show how the system works.

As I've said, I don't buy or sell real estate but if you come across an Industrial Park that's not
doing too well, I'll buy the note held on it. A pleasure to be in your company.

There are but two things you say to the IRS and they are:
Yes sir.