Working with vacant/bank owned property

5 Replies

Good evening,

First, I want to thank you for this community of investors, real estate brokers, and professionals alike. I have gained a significant amount of knowledge and resources within a short amount of time. Currently, I am a real estate broker in North Carolina. I am relatively new, and I've already picked up that there are several people who call themselves investors, but are not truly investors at all. No, they simply want to pick an agent's brain and resources without paying for their time and energies. Well, after much screening, I have a cash buyer, who is looking to become an investor over time. The good news is that they are pooling from a relative who has done several transactions and has a liquid source of income from them to draw from. The bad news is that they are looking to flip condos, townhomes, and apartments, which in my market other investors are buying to rent or lease.

I have found a few listings that may work, but they generally are in competition with other buyers due to tight market conditions. When we go to look at foreclosures, they too face the same competition and generally get too high to make a profit through flipping. So my concentration and interests have become vacant properties or bank owned properties to get in and reach out to before they get to my competition.

What are some tools or resources that you use to reach out to owners of vacant/bank owned properties or to begin a conversation? I have been writing letters to those I find, but no luck at this time. Any help is appreciated as well as discussion. Thank you.

Bank owned properties are a Total waste of time.....if you’re thinking to buy them before they publicly become available on mls or an REO auction site. Everybody and their brother wants to do flips....those who haven’t done them before have unrealistic expectations of profit potential or are too conservative in their numbers in order to be competitive.

Originally posted by @Wayne Brooks :

Bank owned properties are a Total waste of time.....if you're thinking to buy them before they publicly become available on mls or an REO auction site. Everybody and their brother wants to do flips....those who haven't done them before have unrealistic expectations of profit potential or are too conservative in their numbers in order to be competitive.

While I wholeheartedly agree with the unrealistic expectations part, investors are still in the business of flipping for profit, so for discussion, what are some methods of success when attempting to reach out to banks or vacant property owners that have worked for you? Just curious. Thank you for your reply and feedback.

@Robert West while you may have some success in reaching out to vacant property owners (but don't think you are the only one badgering them) @Wayne Brooks is correct about bank owned properties. The big banks have a whole army of people and processes they go through before they make a property available. They most likely aren't going to talk to you or respond. Sometimes locally owned banks will have REO properties on their websites... but not often. It is just not how they work no matter how frustrating it is to watch a property fall into decay while they get their act together...

Thank you Teri & Wayne for your advice and feedback. Much appreciated!

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