The internet is full of people trying to teach others how to do bulk property deals. I thought it sounded interesting, so I have listened to a few of the webinars about these deals. Mostly the information is vaguely accurate, based on someone maybe doing one deal, and is deceptive, in my experience.

I have had several sellers who had multiple properties to sell (more than 20) in a single transaction, and I have talked with lots of buyers (working with one right now) who want to buy many properties.

Here is what I have learned: If you have someone call you because you mentioned that you have a seller of bulk properties, first make sure they are licensed, or are the end buyer. There are many “intermediaries” who think they can take a real estate commission without a real estate license and get really angry when you refuse to work with them. I have had lengthy conversations with some of these people, they insist that the rules do not apply in bulk deals. Really? Every state I have checked has a law similar to the Arizona statute that says that any individual receiving compensation in furtherance of a real estate transaction is acting as a real estate broker, and a license is required.

Second, if you ever give up the list of homes you have to sell, they will end up all over the internet and at some point, if you are on the right mailing list, someone will try to sell them to you as if they own them. I send the home information, but I encode some information in the list of homes so I know exactly who got the list. Then if it shows up on the internet, we have a conversation.

Most of the time, the “buyers” that approached me for my bulk homes were people trying to resell the properties, as this is what the webinars all teach. Get a funding source and flip the properties in escrow. Sure, this can be done. However if you are trying to buy my set of bulk properties, I need proof of funds from a BANK not some company, and you better submit a purchase contract naming an in-state title company, and there had better be substantial earnest money, and enough of it non-refundable to pay for the title work. (A title company will do free title work if a deal falls through for 1 property; they will not do it for a block of 200 homes. If the deal falls through, the title company wants money.)

Most people claiming to have a block of properties to sell, don’t. Most people claiming to be buyers of bulk properties, aren’t.

Unfortunately there are way too many scam artists out there and not enough bulk deals.