Entrepreneurs create marketplace for bulk real estate purchases

Sindya Bhanoo — Mon, 01 Dec 2008 08:50:01 -0800

ReoLynx, a new online marketplace, is trying to help investors buy cheap real estate in bulk.

Buyers can look through homes listed on the site, build portfolios and make bids. The company makes money by charging a 3% commission that is split between the buyer and seller. The cost is about half the standard commission rate.

The idea is to cut out the middlemen, said Christopher Wiley, the company's co-founder in an interview with The Wall Street Journal.

It's too early to tell how the company will do. The first bidding cycle closed last month and brought in more than 3,000 bids, The Journal reported. A handful of bids were accepted on homes priced between $20,000 and $190,000.

Home prices nationwide have plummeted over the last 12 months and are expected to continue to deteriorate.

Other companies with marketplaces similar to ReoLynx include VerifiedREOs.com and BulkREO.com.