Supply and demand.

Justin, thanks for the information you supplied.

I buy them from a supply house called Famous Supply.

Supply is being addressed in one way.

You could have a redevelopment play and change it's use and sell to a developer or keep it's current use and tear down and build new with a higher density.It depends on many factors.Areas such as your many are buying on appreciation driven markets and not cash flow.If you want cash flow and holding long term you might want to look at other areas.Even with the 50% guide if they are wanting a 4.5 cap and you negotiate down to a 6 cap.Then in an area with limited supply of apartments you can raise rents faster and increase the cap to a 7 or 8 rather quickly.This is what the REITS do to increase their bottom line buying in premium locations.

The youtube link Bryan supplied provides a 'hint' of how this concept will be implemented.

In reality, the kid had coolers upon coolers of supplies and was selling dozens and dozens of glasses of lemonade in a public park.

Some REIA also offer benefits like discounts or commercial rates on home repair supplies - plumbing, flooring, paint, etc.

Removed $5,684 from supplies added to cost of goods sold and ending inventory."

Through Sep 2011, the ave # units sold back to the lender on a monthly basis in Cook Cty, IL was 879.What are lenders doing to manage this supply of REO properties that is bound for the resale market?