Fannie Mae owns about 110,000 homes. They are collecting rent on about 8,000 of those properties.
Some real estate agents are getting upset about the new plan to sell these homes directly to hedge funds and private equity groups.
Let’s run some round numbers real quick:
100,000 Homes
100,000 Average Sale Price
10,000,000,000 – That’s 10 Billion in sales.
Now, the average Realtor commission is about 3% on the sale of a home….
That totals $300 Million in Realtor sales commissions -GONE- if Fannie Mae were to sell all of their inventory directly to hedge funds.
You can read more about this at http://blogs.wsj.com/developments/2012/09/10/fannies-big-foreclosure-sale-maybe-not-so-big-after-all/
Hmmmmm – I imagine if you asked your friendly neighborhood Realtor if they are excited about missing out on their “piece” of that pile of commissions, they probably won’t be too happy.
Next Monday at Washington REIA Network we are going to be talking about the alternatives to the private equity and hedge fund sales – which are short sales and auctions.
Get more details on the WREIA Oct. metting at http://wreia-oct2012-cc1.eventbrite.com
Let me know how I can help you,
John Peterson
Washington REIA Network, President
Profitable Property, Founder
P.S We are doing projects all over Metro DC! If you need an active finance partner in the Washington DC area, we have been expanding our capital base to help you with your deals. You can request a funding letter or share details on your property at http://dchardmoneylender.com/quick-property-submit/
Finally – if you enjoyed last months WREIA meeting, you are going to love this: Profitable Property is going to help you dig a little deeper into effective business marketing. We will be hosting two sessions tentatively scheduled for Friday morning Nov. 2nd in Rockville, MD. Let us know if you are interested by sending an email to ProfitableProperty@gmail.com.