I was out farming an area today and found a couple homes that we're traditional vacant/boarded up so I wrote down the addresses. When I got back home I looked them up and noticed both we're just recently purchased by banks (both purchased in May) and had no Realtor sign in the front yard. So here is my question:
Since these are NEW and not listed on the MLS, do I contact the bank directly to negotiate? I think this should be a good opportunity to grab these before they are listed, just not sure how to proceed. Any REO experts have some feedback? Any help would be appreciated. Thanks.
Good luck getting in touch with the right person at the bank who is handling that file! Not to say it is impossible, but in most cases, well, good luck is all I can say.
Most (not all) banks will not deal with you direct on a single home. They assign someone to the file and then select a broker/agent to market the property for them. A BPO is ordered and submitted, then the bank decides the final list price. You want to keep a very close eye on the properties and get in touch with the agent that gets it. Then get the info on the BPO date, the BPO price that is finally submitted and have an offer written up by the list agent for the full BPO price (assuming that price meets your criteria) and wait.
Let us know how it comes along.
Edited: 06/26/2010 at 08:42AM
Will Barnard, Barnard Enterprises, Inc. E-Mail: info@barnardenterprises.com Website:http://www.barnardenterprises.com info@barnardenterprises.com
Forgot to mention: make sur eyou do your market analysis first and know what repairs are needed (estimated, with contingency reserve) and what the property ARV is. This will give you your max offer price.
Edited: 06/26/2010 at 08:42AM
Will Barnard, Barnard Enterprises, Inc. E-Mail: info@barnardenterprises.com Website:http://www.barnardenterprises.com info@barnardenterprises.com
This seems to come up weekly! If you can get ahold of the correct Asset manager (depending on the bank there can be hundreds, or might still be with the premarketing asset manager, etc), they will refer you to the agent that will be listing the property. Just because there is no sign, dosnt mean they dont have the property assigned to an agent (who is currently handling the premarketing tasks, securing the property/utilities/etc).
I say it everytime, the asset manager dosnt want to talk to a buyer, thats why they hire the agent to talk to guys like you and me. As an REO agent, I know this to be true when I get a name of some investor that called the bank from the asset manager to deal with it.
After the foreclosure auction, properties become REO, but they won't hit MLS immediately. Keep driving past such houses, and look for a "sign" posted on the door; usually, it is notifying occupants to notify the agent handling matters for that house. When you see that sign, get info from that sign and make contacts.
Oh, one I was watching after auction had a sign on it the last time I drove past it. That was a "Condemned" sign; apparently, after the auction, the house caught fire. That's a bad sign for the owner of that REO. Sorry about the puns.
Condemned is not necessarily a bad sign for an REO owner. The owner most likely filed an insurance claim, and was paid for the damages. Now they could care less what happens to the property, as long as they get rid of it. We have sold burn houses that we have already been paid out ins. claims on for $500.
I would leave a sign on the doors of both houses, this way, the agent who is assigned to premarketing tasks on the property will hopefully contact you to negotiate a sale, or let you know what is holding up the marketing. The institutions who own these REOs are most likely doing their due dillegence to get these ready to mkt. God Bless.
Great comments. I think i'll go by tomorrow and put a note under the door of both houses, it certainly won't hurt my cause. I'm also working on a few private owners with fixer uppers in that area so i'll be driving through frequently.
There's a good chance an agent has been assigned to that property already. Paul's right, leave a note. If you have a system that lets you search recent foreclosures in you area do this often. Listing agents love finding there own buyers. They will call you.
I would say calling the agent weekly is a better way than a note. Big REO teams will not always personally do the property tasks, and will send out a field inspector. The field inspector wont care less about the note 9 times out of 10.
Its hard to call the agent if you don't know who it is. You will probably have to break in and hope they have a sign in sheet posted for the initial services crew.
Our banks require we put up a sign of who is handling the property, for emergencies, etc. That is our number because we are responsible for the property (emergencies/break ins/ vandalism/etc etc).
Good luck and keep us posted. Read my blog as I will be taking a select few students from start to finish through an REO purchase, rehab and flip. Video clips included as well as some tips that could help you out in your quest!
Happy investing!
Edited: 06/26/2010 at 08:44AM
Will Barnard, Barnard Enterprises, Inc. E-Mail: info@barnardenterprises.com Website:http://www.barnardenterprises.com info@barnardenterprises.com
Thanks for the blog comment Jeff.
Looking forward to hearing of your success tracking down the person responsible for the properties you have interest in!
Edited: 06/26/2010 at 08:45AM
Will Barnard, Barnard Enterprises, Inc. E-Mail: info@barnardenterprises.com Website:http://www.barnardenterprises.com info@barnardenterprises.com
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Jun 23 '09, 09:22 AM
