Banks

It can work that easily with small local banks only. Typically they'll put you on an email distribution list. I've worked with a number of banks that way and receive e-mails once per month or quarter.

It does not work with large national banks (Wells Fargo, B of A, etc). Those banks will list it MLS in order to attract the most number of bids.

Good luck!

- Tom

man i just go to the website for my local banks and the properties are listed right there on the home page. i certainly realize it won't be that easy in los angeles california. but you get the idea. perhaps you know the names of some small banks close to where you live in the metropolis of the angels and you can go to there website. lol...

ALSO VERY IMPORTANT.... look in "YOUR TOWN YOUR REAL ESTATE PROFITS" ( page 69) and read all about how joe and stacey jurek emailed the bank and made some ridiculous offers and got them accepted. it even shows you the emails he used and everything. another thing ask for the loss mitigation department branch managers couldn't careless about reo's.

if you dont have ytyrep let me know.

i wish you well
walt

Walt and Tom, very good information and thank you for helping me. I will check it out and do your suggestions. Walt, I have three books from Dean but I don't have "Your Town Your Real Estate Profits"

Thank you,

Greg

Asset Managers or Bank REO Listing Agents are who you want to forge relationships with at your bank.

I wasted a lot of time finding vacant/no-sign houses and then searching the owners at the courthouse. Probably 8 out of 10 were REO. If you come across a vacant property, search the Billing Address at the Tax Assessors Office, and the bill is going to BOA, Chase, Citibank, Suntrust or any other BigBank, just save yourself phone minutes, a stamp and a headache.NEXT! Yeah,common sense would say: "Vacant, Must Sell" but the banks have no common sense.

Bank-owned and Unlisted = Shadow Inventory. These are kept off market until the bank can bundle them into a Bulk REO/NPN package and sell them without the general public knowing what happened. They have to. If all the REO's were put on Zillow tomorrow it would crash the banks, the economy, and probably even the American Dollar. They keep them in the shadows for a reason and then hide behind the "We're too big to provide competent customer service" front.

With the small banks you'll stand half-a-chance. Google "the Texas Ratio" for a list of failing banks that might have REO's for sale. It doesn't matter what State the bank is in, they could have foreclosures anywhere. Also, if you have a Linkedin Account, you can keyword search "asset manager" and that will set you in the right direction. Good luck! You're gonna need it. Especially in Corpo-LA-LA-Land.

ps- Don't mean to be "anti-bank" it's just that I worked for the BOA directly/indirectly for a total of 6 years and I've seen enough.
Save yourself, go FSBO!

That is a great idea; I will see if that is true for my area. Thanks Walt!

Why would an asset manager or a listing agent sell you a house at some low ball price when they can list it on the MLS and get more money for the property? It is pretty much bank policy that their properties will be listed on the MLS before any offers are considered.
Maybe some very small banks or credit unions will talk to you. Remember, some of the strategies that are written and talked about come out of books that are over FIVE years old!!!!!
Examples:
REOs used to be assignable.
Asset managers used to sell single properties to investors.
Listing agents would take offers from investors looking for one property at a time and accept the offer BEFORE it was listed.
Maybe 1 out of 1000!

The sad facts. For the properties that are not sold in bulk to syndicated buyers (the big boys) like Eric describes above, they ARE going to be listed on the MLS. You can still get good deals. We buy 2 to 4 MLS listed REOs every month. You just have to offer and track the property. Keep offering until some one pays more than you can OR THE BANK BECOMES THE MOTIVATED SELLER!!
We average 10 weeks from first offer to an accepted offer. FOLLOW UP IS KEY. There is no such thing as "The banks are sitting on all this inventory and they are going to sell it like candy to anyone that calls them"
If some one tries to teach you that, RUN AWAY!

Maybe some day the banks will return to the days of old. It is possible but highly unlikely.

This is how a little investor (us) acquires REOs in the real world.

1. AS soon as the property hits the MLS make your offer based on the numbers. ARV, Minus Repairs, expenses and profit.
2. 99 times out of 100 your 1st offer will be rejected. Follow up and continue to re submit your offer every 2 weeks
3. Watch the property, If it goes under contract don't give up. 1/2 the time the deal does not close and it comes back on the market. Most investors stop tracking when the property goes under contract. Make an immediate offer when it hits the market again!
4. Keep offering until it sells or you get the offer accepted.
5. You can also check for old inventory and offer on those. The ones that have been on the MLS over 90 days.
6. Get your systems in place to offer on at least 2 REOs a day. A good POF letter. Notice I said a GOOD POF letter. Supply a copy of an earnest money check with every offer. The earnest the seller requires, not some silly $1.00 after inspection period. Most of your offers will be cash, right? But I can only put up $1.00?? The bank won't even counter on silly earnest money amounts on a cash offer.

If you want to go after REOs this is how it works today.

When dealing with FSBOs you can put whatever earnest money or terms you can negotiate. FSBOs are easier to do, but there are 100s more REOs out there. DO BOTH!!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

just my 2 cents worth

How many times have they done this in total? How many times in the last 24 months?

Any one on this site that has made a single (one property at a time) purchase directly with an asset manager or bank official in the past 12 months please post your deal here. Name and location of Bank. Profit made.

Not that it can't be done with a very small bank. The problem is they don't have enough inventory to keep your pipeline full. 1 deal here, 1 deal there, MAYBE.

I went to the grocery store the other day and tried to purchase a gallon of milk with my "net worth" They would not sell it to me.

I know guys who have done these deals yet they try and start an ebay business and work with professional educators instead of doing actual deals. Interesting!

Try that old strategy and my strategy listed above and see which is more productive in the real world. I challenge you.

Good luck in whatever you do!
Now go make offers,

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

The REO listing agent doubles their pay when they sell shadow inventory to their "little pool of investors."
They collect the entire percentage of the sale! Easy money.
Trouble, or challenge is "getting in" their pool!

PS. If a "little investor" were to get a crack at a shadowed property...surely it will hit the MLS, HOWEVER, it will be listed as: "Pending."