A Note Question To This Forum on Why...

Tax Liens & Mortgage Notes
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A Note Question To This Forum on Why...

Norma Wallace
Chicago, IL · Member since 2015 · 6 posts · 1 vote

I know for a fact from the last Call Report on a bank I have located, that they have $109,000,000 in non-accruals.  I also know they have the reserves to cover selling these assets.  I made contact, (I thought) with the correct person handling their non-performing assets.  I also know that their Tier 1 ratio is 38%, and their Total Risk based ratio is 39%.  So I see no reason why they can't sell, because they are in good shape to do so.

So far, instead of sending me a note tape, I have received their REO tape, all of which have already been assigned to a broker. She has also said she would forward my request to their Portfolio Managers to see if anything is available. "If anything is available"?

Do you gentlemen think that I should keep trying, in another way or person, to contact a someone else in authority?  Maybe thru LinkedIn?  Although maybe I'm being impatient since its only been one day so far.

Your advice please.

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Rick H.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
11y

I don't mean to be disrespectful, however if you carry your 'I know for a fact' attitude into the bank, you have probably not compelled the right people to want to help you.

Since people want to do budiness with people they know and like, if you are an unknown quantity from an unknown source, you're just another smart person who knows the language of money. 

This doesn't mean you're wrong of course, it just means what you're doing isn't getting you the results you want. 

I suggest a few other tacts. One is to approach from the flank and determine what is upsetting his/her boss most and discuss ways to solve this. Another is to groom the relationship without much initial conversation about what you want. Yet another is to be direct, 'come clean' about your problem ('I need to buy X before this date, can you help me please?').

Anytime I forget the importance of salesmanship in closing my deals, I come to regret it. When I do remember, whether a singular transaction or taking down a large asset, I seem to be able to write my own ticket. 

Hope you find a way to become an insider.

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    11y

    Probably depends on how much money you have to buy with, as an actual buyer among other qualifications, not as a broker.

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  • Norma Wallace
    OP
    Chicago, IL · Member since 2015 · 6 posts · 1 vote
    11y

    Thank you for your input.

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  • Mike Hartzog
    Lender · Redmond, WA · Member since 2014 · 553 posts · 490 votes
    11y

    Norma,

    Developing these relationships takes some time. I think you would be well served to identify a number of regional and especially community banks and contact as many as you can. Try to develop contacts at each that you can check back with over time, perhaps on a monthly basis. Generally banks are going to want to sell a pool of assets and, unlike REO sales, these types of transactions generally don't happen that often. Community banks who are doing portfolio lending will be your best bet if you don't have millions to fund purchase of a large pool.

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  • Norma Wallace
    OP
    Chicago, IL · Member since 2015 · 6 posts · 1 vote
    11y

    Thank you for that info Mike.  One question, how can you tell if a bank is regional or a community bank?

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  • Rick H.
    Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
    11y

    I don't mean to be disrespectful, however if you carry your 'I know for a fact' attitude into the bank, you have probably not compelled the right people to want to help you.

    Since people want to do budiness with people they know and like, if you are an unknown quantity from an unknown source, you're just another smart person who knows the language of money. 

    This doesn't mean you're wrong of course, it just means what you're doing isn't getting you the results you want. 

    I suggest a few other tacts. One is to approach from the flank and determine what is upsetting his/her boss most and discuss ways to solve this. Another is to groom the relationship without much initial conversation about what you want. Yet another is to be direct, 'come clean' about your problem ('I need to buy X before this date, can you help me please?').

    Anytime I forget the importance of salesmanship in closing my deals, I come to regret it. When I do remember, whether a singular transaction or taking down a large asset, I seem to be able to write my own ticket. 

    Hope you find a way to become an insider.

    1Reply
  • Norma Wallace
    OP
    Chicago, IL · Member since 2015 · 6 posts · 1 vote
    11y

    Rick,

    Thank you, but I never actually said that to the contact I did find. I wanted the forum to know that info. I will try your "approach from the flank" idea, though. I have a feeling that the person I spoke with is really just for REO props. Maybe by searching for Portfolio Managers for that bank on LinkedIn, and see what I get.

    Thank you again Rick, all of those suggestions were very helpful!

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