We know the banks have them. And we know banks want to get rid of their increasing inventories.
Picking up good quality [tag-tec]REO’s[/tag-tec] (Real Estate Owned by Banks) can be one of the most rewarding investment strategies you can ever accomplish with real estate. Question is- what exactly is the best strategy and how can you get started?
1. Get a list of all the banks in your market. Get the names of key people who work in the [tag-ice]foreclosure[/tag-ice] departments handling the REO’s. They are your tickets inside the doors.
2. Introduce yourself as an investor who is interested in taking these problem properties off their hands. Either call or visit them in person. Networking is vital so you need to get to know them and they need to get to know you.
3. Research their lists of properties. Research any property that has possible potential for you. Know what you want.
That means you need to know your markets thoroughly. You need to have a working knowledge of exactly what properties are worth, square foot by square foot and dollar by dollar.
Later , you will need to be ready to make your case to the [tag-self]bank[/tag-self] on why they need to sell each property below market price. The research you do now will be the key.
Tomorrow we’ll talk about how to make a short sale offer to the bank and why the bank will be listening to your offer.