Philadelphia, PA · Member since 2008 · 21 posts · 0 votes
Is it normal for a smaller local bank/institution to be more willing than a larger bank to show their REO list to a possible buyer? This is what I've heard in the past. I guess I would like to hear any experiences that people have had with buying REOs from smaller banks. (eg, how long does it usually take, how much of a headache is it to deal with bank managers, etc)
Real Estate Investor · Harrisburg, PA · Member since 2008 · 716 posts · 41 votes
18y
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.
Commercial Real Estate Agent · Atlanta, GA · Member since 2008 · 16 posts · 0 votes
18y
I am an agent that works with a lot of investors and I had a question about this very subject. Now I know I need to target smaller banks!
Thanks again/!
Commercial Real Estate Agent · Atlanta, GA · Member since 2008 · 16 posts · 0 votes
18y
Originally posted by "Heathen":
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.
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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.
Real Estate Investor · Harrisburg, PA · Member since 2008 · 716 posts · 41 votes
18y
Originally posted by "InvestorsAgent":
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?
The way it happened for me was I found a property in which I was interested through my Realtor (on the MLS). We went through the process and made a deal. While signing the contract (in person) he brought up his other properties. Since then, I have made a point of letting every banker with which I deal, or come across, know that I will help them with their REOs.
So, you can make calls. I would hold off on presentations at this point. Or stop by in person. Start with banks where you know someone (or get to know someone at the banks where you already operate).
Residential Lender · Salem, MA · Member since 2008 · 82 posts · 1 vote
18y
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.