Most buyers are looking for a bargain amoung the short sales and
bank owned properties listed on the MLS. The problem with that is that
the cats out of the bag now. That’s where everyone else is looking for
deals too and bargain hunters are bidding these homes in the most
desirable areas up so that they arent really a bargain anymore.
One place thats often overlooked is in the narrow window of
opportunity that occurs between the actual foreclosure auction (trustee
sale) and the time that passes before the bank gets the property listed
with a realtor on the MLS.
I recently helped a client who was turned away by a traditional
real estate agent. By working this window we got an offer in to the bank BEFORE it
came on the market and was bid up by other bargain hunters. She saved
$225,000 off of the pre-forecloure list price.
The deals ARE out there… You just gotta know where to look.
Brett Jennings
Brett - that is awesome. Conventional wisdom is that the lenders won’t deal with buyers and their agents until after the property is listed. Can you give us any tips on how you made the offer and got it accepted?
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I agree, I have clients that have asked me to take advantage of that window, but it was my understanding that this does not compute for the banks, that they need to follow a process of handing over the a BPO, removing tenants etc., things that they don’t and can’t get involved with.? Perhaps it’s different in other states.? Any tips would be appreciated.?
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I’ve heard really mixed results on this one. I have had really smart experienced Realtors tell me they’ve had zero luck, and others who do it regularly. My only conclusion is that really depends on two things: 1) the bank, and 2) how you approach them.
Sean -
I have a property that I want in Riverside that was just foreclsoed on - It is not listed yet and I tried contacting the Trustee and just got a recorded message that the sale was completed -
Any suggestions on how to track down who holds that property?
Thanks
BOB
Hi Bob! Sounds like you called the “sales line” which is the number we list on our site. Try googling the Trustee’s name and try to find a main office phone number. You may also find it on the notice of default itself. I also highly recommend the Lane Guide for finding good phone numbers for both the lender and the trustee.
Sean -
Thanks - you are a wealth of information. We’ll see how this goes. I did just buy 2 investment properties that are producing a 10% cash on cash return after paying a professional manager and not counting principle reduction. If these double in value over?the next 10-15 years, they will be a 20%+/- IRR. I am on the hunt for about 10 more of these! They were purchased retail by an REO broker, however, were priced right.
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BOB
Sounds like exactly the right plan to me!
I tried to go to the bank with a all cash buyer. Before it went to auction. They said it had to go through their process and would not even consider my buyers offer. I tried about 5 different contact numbers for that bank, different departments. They wouldn’t do it , not even for ALL CASH. It seemed no one had the authority to “ok” such a deal. HOW did you do it??? Would appreciate any tips. Thank you, Brandi
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The bank can’t sell you the property “before” it goes to auction because they don’t own it. The folks above are talking about buying between the time the bank takes ownership at auction, and it being listed with a Realtor.
I’d like to share with you guys an experience I went through. I found a property I wanted to buy and found out it had just gone back to the bank at auction. I began to google search for the who’s who in the bank, by the way, the bank in question here is BofA Buffalo N.Y. So after a thourough search of google I came up with a couple of emails. I began to email them stating that they had a?property I was really interested in and I had attached a letter of intent. I also mentioned that the listing agent wasn’t being helpful and wouldn’t return my calls, which?was true at the time, ?and that I needed someone who can make decisions. Anyway, after a little patience and perseverance. A gentlemen high up in the ladder called me direct because apperantly someone I had emailed previously had forwarded my request over to him. I spoke to him brienfly and he gave me his direct fax # and?to fax over my best and final offer to him. So I did, and I purchased the home this way, with no other competition in sight. I think this deserves an A+ for effort. People seem to turn away when osticles arise, if only you take charge and grab the bull by the horns. You’ll be surprised what you can get accomplished…
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Edward Alvarez
Sales Associate
213-479-5892 cell
562-304-7797 fax
agentalvarez@gmail.com
http://www.Edward-Alvarez.com
RE/MAX College Park Realty
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Properties 1st
http://www.Properites-1st.com