Investors have spent too much time obsessing about where to find the deals.
And many have gone to great lengths. Some have even hired bird dogs, which isn’t a bad idea –in other slower markets.
But this market is different. Why?
The deals are already there for you- at banks. Besides, why pay for the deal when you can find it yourself at no extra cost?
Many marketers refer to this kind of opportunity as "going for the low hanging fruit".
Why bother to climb to the top of the tree when you’ve got the good stuff so near the ground?
So now you can drive over to your closest bank and take a look at the new merchandise. The [tag-ice]REO’s[/tag-ice]. (Real Estate Owned by the Bank) They will be plentiful. And in some areas you’ll find banks stocked to the gills.
How do we know this?
Because so many sub-prime mortgage lenders are going out of business. That is the clearest gage on which sort of market we’ve got.
That’s also why [tag-tec]real estate investors[/tag-tec] can easily get inside the banks’ doors. Will they start listening to your offers? You bet.
Does it mean they’ll take outrageous offers? No, but they’ll probably take reasonable offers.
And the definition of what is reasonable has certainly changed. The swelling of their inventories have just created a nice supply and demand landscape for you to work with.
We’ll talk about the best way of approaching them in the next post.