Has anyone had any success partnering with local banks or credit unions to be able to buy the majority of their foreclosed inventory? If so, what type of agreement have you worked out?
We have come across some banks that actually have decent properties but want us to purchase them all and their pricing is not good enough for us to take them and then make any profit.
If you can cherry pick the ones you want that would be better.
How do you come across the lowest pricing for a home? Bank? auction? If you canon get the best price from a bank asset, where can you?
@Aaron Ross The best deals come from motivated sellers.
Banks can very motivated when they have lots of foreclosures and few buyers. However despite what most people think, banks want to get as much as they can for their properties. In a hot market bank owned properties can easily overpriced.
Auctions can be great deals when markets are soft. However in hot markets people often overpay at auctions because people overbid in the excitement of the moment.
Motivated sellers - people who just want to get rid of their problem and don't have the motivation or knowledge to deal with it, are where you get the best deals. These motivated sellers could be banks, auctions, estates, direct marketing, vacant houses or 100 other ways to find deals. What works best will depend on your market.
Search here and you will find lots of threads on finding deals. Good luck - Ned
I agree with you. Direct or private sellers is the best source of 'GOOD' deals.
All the other mediums prices are going way up, plus competition, but with that being said, it is less time consuming to buy from a bank,auction, agency etc.
You don't have that whole HUMAN/personal element involved, it's strictly business, baby!
@Ned Carey thank you for your thoughts. Very helpful.
I have found, at least locally, the banks overprice their inventory initially. After 2 or 3 price drops the prices are more in line with what they should be. My market is still pretty soft, so I don't think there would be benefit of getting the properties early. I'm sure as things heat up that would be a nice "in" to have.
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