Real estate is often about location! Location! Location! Real Estate Investors are always trying to find great Deals! Deals! Deals! One of the keys to finding great deals is to be able to generate leads to find these great deals. Often many investors tell me how they can’t find anything through a realtor or through the MLS. Many real estate investors are interested finding deals and generating leads and are always looking at ways to accomplish this. Real Estate Investors are often interested in foreclosures because they often believe they might be able to negotiate a good deal for a foreclosure. In some cases this can be very true. As with any seller tone of the keys to how willing the selling may be strictly depends on the seller’s motivation.
Click on Photo to WATCH VIDEO! How to find unlisted off market properties for sale!
What is a Foreclosure?
Foreclosure is a legal course of action by a lender when a homeowner fails to pay the mortgage payments due to the lender. A Foreclosure is a legal process where the lender attempts to recover the outstanding balance of the loan that was made to the borrower by the lender and the terms and conditions of this loan were formalized in a mortgage contract. The borrower has stopped making payments on the loan to the lender and now the lender is forcing the sale of the property used as the collateral for the loan that was made by the lender to the borrower. There are many website out there that can gather foreclosure data for you. Often these website will charge a monthly fee to do this. I often like helping real estate investors that are beginners and how they can start with little or no money.
These websites you can access directly and they are free to access.
Fannie Mae www.homepath.com
Freddie Mac www.homesteps.com
How to find unlisted off market Foreclosed Properties
As a real estate investor, you may consider foreclosures only done by banks. You want to expand your target when you thin k of foreclosed properties. Foreclosed Properties can be foreclosed by bug banks, small banks, credit unions, private lenders and hard money lenders. It is critically important you cast you net for foreclose properties wider than just banks! When we contact these lenders, we want to try to find properties they foreclosed on and have not yet listed on the market. If you can find these off market unlisted deals, you will have less competition!
How to find Bank Owned Properties
Real Estate Investors want to find that off market or unlisted deal which can be music to their ears! Many real estate markets around the country are very competitive, with great deals being scooped up just before the small investor can even submit an offer. Real Estate Investors are always looking to find that deal that is a homerun. With banks, why not go right to the bank. They have a lot of cash and often have a few properties they are looking to sell.
The following is my REO action plan to locate off market bank owned properties that I created. I hope you will achieve many results with unlisted bank owned REOs and will share your results, strategies and additional tips with others during your real estate investing adventure! Below are a few pointers to help you with a step by step plan to begin your journey in search of that next deal. So be sure to take action and let your REI Adventure begin!
A step by step guide on How to find off market properties for sale
1. Go to Google and make a list of all the small local community banks and credit unions in your local target market area.
2. Visit each website to learn a little more about each financial institution
3. Have a notepad available for each call and take plenty of notes.
4. Note the date, the financial institution and who you speak to.
5. Write down as much information as you can.
6. Make sure you sound friendly, polite and confident with every person you speak to.
7. Inquire who at their bank would handle or be in charge of their REO properties – a.k.a. “bank owned”.
8. The person at the bank in charge of the REOs is usually known as the “Asset Manager”.
9. Once you get the name and phone number of the Asset Manager you are half way there.
10. The Asset Manager of the REOs may ask you “Who you are and what are you looking for?”
11. You can reply that you and a group of investors are looking to acquire a few additional properties this month and you would like to know what they have available.
12. Draft your question around your area of interest such as single family homes, Multi-family, commercial properties or vacant parcels of land.
13. The longer you speak to the Asset Manager, the more information that will become available. You want to build trust, rapport and a relationship with the Asset Manager.
14. If they have some REOs find out all the information and then state you will need to discuss with partners and contact them about next steps such as viewing the REOs.
15. This will give you time to run the numbers, locate the properties and determine what may be the best real estate strategy to use.
16. The Asset Manager may even inform you about new REOs that are not even listed yet! OFF MARKET!!! UNLISTED!!! How great is that?
17. End the conversation by thanking them for their time and consideration.
18. If they do not have any REOs today, inquire if you could check back with them in a few months.
19. Golden Nugget Tip: Be sure to keep a record of information on each Asset Manager you speak to. The information Name of the Financial Institution, Name of the Asset manager, direct phone number and email address!
20. Follow-up with the banks, credit unions and private lenders every few months
21. Repeat! You deal making machine!
Over the years, I have contacted many banks and followed this exact step-by-step guidelines that I created. I found out some good information and now I have several REO Asset Managers that I can contact in the future.The REO Asset Manager holds the key to the treasure chest of REO gems! I hope you achieve much success with REOs and good luck with real estate investing! I hope this Guide map to finding REO gems will let the real estate adventure begin! If you enjoyed this article please share it with others! Thank you. Follow your passion and make your dreams a reality!
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Real Estate Investing can be FUN and a Real Adventure! Believe and Achieve! – Joe Jurek
About the Author: Joe Jurek is a Real Estate Investor that provides consulting to new and experienced real estate investors alike. If you want to learn more about real estate investing or take your current real estate investing business to that next level, contact Joe today and inquire about the consulting services he offers.