BiggerPockets

Going direct to banks for REO business can be difficult. At the same time there are literally thousands of banks struggling with a variety of problems. Community and local banks need help and the need to sell. Before you ever even make the call you should know what distressed assets the bank is dealing with. But after you find that out, then what?

Banks are getting lots of calls from investors and brokers looking to score with REO and nonperforming loans. One strategy that can help differentiate you is to go in with a team.

I recently had an opportunity to talk with Ken Hecht, a successful commercial broker, now developer and investor, about how he uses networking, or Distressed Asset Mastermind Groups to penetrate accounts.

A few key points I took away:

1. Associate with non-competing professionals.
2. Set a regular schedule for meetings and make sure you attend. Be consistent.
3. Don't all rush an account. Think strategically about the challenges the bank has and how your team can help.
4. Choose your associates carefully avoid having the blind lead the blind; reach up.
5. Diversify. How broad is your coverage area? Maybe you should have 2 or even 3 groups in different territories.

The biggest opportunity in many decades is upon us in real estate. At the same time many investors, brokers, and other service providers will simply give up and go away because it is officially much more difficult today than it was a few years ago to make a buck. Decide which you're going to do now and put strategies, like mastermind groups, in place to capitalize on this wave.