BiggerPockets

To tell you the truth.....in my experience

The smaller community banks are much better at lending (LTV wise) and there's not a lot of inventory

I'm doing a lot of the midwest in search of REO.....it's not there

A local bank with real people in their REO office are definitely approachable. In fact, if you establish a track record of easy to deal with, word is your bond, fast, good pay, etc., etc. they may come to you with their REOs.

Every local bank with whom I have a relationship shares their REO list with me and actually emails me when they have new properties they think will peak my interest.

Large banks - forgettaboutit.

PS - I bought 3 REOs (at separate times over the period of a year or so) from a local bank that is about 5 years old with 6 or so branches. I dealt directly with the President and have come to know him personally. To the point where we have provided each other advice on general business topics. On the third purchase he gave me an offer I couldn't refuse - he agreed to match the exact terms of my normal financial institution on the loan AND knock $2k off the final negotiated price iff I finance with his bank. I took the deal. In a uncharacteristic set of circumstances (for the way I run my business) I since sold that property (I am usually a buy and hold REI) to someone who gave me an offer I couldn't refuse.

I did have a question about Heathen's comment regarding dealing with smaller banks... how exactly did you go about establishing a relationship with them? Did you call them up and request a meeting? Give them a presentation or simply make a phone call and tell them what you wanted? I am asking because I am ready to make contact with a bank but would like some guidance on the best way to approach it. I do appreciate any replies.

has anyone ever had success buying everything a local bank has for REO? i would imagine that the properties must be focused in a geographical proximity that would make it easy to manage them. easier then buying them from a national at least.