Odell Barnes (entrepreneur)
Odell Barnes | |
|---|---|
| Born | James Odell Barnes, Jr. October 20, 1951 Palatka, Florida, United States |
James Odell Barnes Jr. (aka Odell Barnes) has earned the nickname "Foreclosure King." His firm, Odell Barnes REO, is a bulk-buyer of foreclosed homes in the United States.[1] 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 directly to homeowners. Barnes and his investors sell the homes below current market value, typically with low down payments and higher-than-normal interest rates.
Foreclosure crisis
[edit]Odell Barnes gained notoriety after being featured on "Nightline".[2] In 2008, with the Financial Crisis in full swing, Odell was one of the few people still doing well in the real estate market.
"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."[3]
Business practices
[edit]Barnes buys homes from banks 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.
"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."[2]
The benefit of Barnes business to lower-income groups is debatable. Barnes emphasizes that he provides for people with no other way of achieving home-ownership.[1] 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.[4]
Personal life
[edit]He was last married to Wanda Barnes and had two step daughters.[5] He used to date an unsuccessful property management company owner of a business that no longer exists Paige Davis of Paige Property Management (now closed by court order). He now dates a traveling RN and travels with her around the country.
External links
[edit]- "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
[edit]- ^ a b Hagerty, James R. "Foreclosure Rise Brings Business To One Investor", The WSJ, 14 March 2007. Accessed 1 March.
- ^ a b Mabrey, Vicki. "Investor Cashes in on 'Cheap, Shabby' Homes", ABC, April 2007.
- ^ "Foreclosure King: Best Thing for Distressed Neighborhoods Is Homeowners - ABC News".
- ^ "Foreclosure King: Best Thing for Distressed Neighborhoods Is Homeowners - ABC News".
- ^ "Facebook". www.facebook.com. Retrieved 2021-08-30.