James Odell Barnes Jr. (aka Odell Barnes) earned the nickname "Foreclosure King" after becoming one of the largest buyers of (REO) foreclosed homes in the United States. For decades, Barnes has been buying foreclosed homes in bulk from banks and other mortgage-lenders and selling them to a network of private investors and direct to homeowners. Barnes and his investors sell the homes below current market value, typically with low down payments and higher-than-normal interest rates.
Video Odell Barnes (entrepreneur)
Foreclosure crisis
Odell Barnes came to the attention of the public after being featured on "Nightline". In 2008, with the Financial Crisis in full swing, Odell was one of the few people still doing well in the real estate market. It was a buyer's market for Barnes.
- "Two years ago, you bought 100, 200 houses a month, now you buy 2,000 to 3,000 houses a month and it's going to be more," Barnes said. "They don't know what to do with them, the mortgage companies, and they're just dumping them."
Maps Odell Barnes (entrepreneur)
Business practices
Barnes buys homes at deep discounts ("pennies on the dollar"). He and his investors mark their homes for sale at prices below comparable rentals and apply higher-than-market interest rates. Despite the markup and high interest rates, Barnes' homebuyers seemed content.
- "People want to own a home," said Barnes. "And these people -- they're poor, they ain't dumb. They know how to put in a hot-water heater. If their house needs to be painted, they'll go to Lowe's to buy a gallon of paint and they'll paint it. They don't have book sense, but they know how to fix up their house. And it's amazing -- you go to them and they fix them up and they're so proud and they own a home."
Communities may benefit from Barnes' emphasis on home-ownership. According to an investor:
- "You're more involved in the neighborhood if you own the house versus a renter... A renter is typically in the mindset of just passing through. I had an opportunity where we sold a house that we were renting; a homeowner bought the house and put a new roof on it. Suddenly they care."
Personal life
He is married to Wanda Barnes and has two step daughters; Bailey Oliger and Drew Oliger.
External links
- "Foreclosure King: Best Thing for Distressed Neighborhoods Is Homeowners" -ABC news
- VIDEO -ABC Nightline
- "Buying Foreclosed Homes With a Mouse Click" -WSJ
- [1] "Beyond Subprime: Reselling Foreclosed Homes" -NPR
References
Source of the article : Wikipedia
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