Much has been made about the lack of distressed properties available on the market. While there is no denying that there has been a dramatic reduction in inventory, there are still bank owned properties available. However, the way in which you go about getting them may have changed a bit. Now, more than ever, how you make your offers and who you make them with is critical. If you are sloppy with your documents or if you still think that your lowball cash offer will work, you will be greatly disappointed. There is still an opportunity to clean up on bank owned properties, but you have to align yourself with the right people.
The key to getting bank owned and short sale deals in today’s market is to work with the right realtor. There are a few selected realtors in every market who are still getting bank owned listings. These realtors control the flow of the entire transaction. You may even get lucky working with the right realtor at the right time, but most cases require months of networking. Every networking meeting and investment club you attend may pay off if you develop a relationship with a quality realtor that has bank owned listings. You can also start a new relationship with an email campaign or by good old fashion door knocking.
The fastest way to enhance your relator relationships is by closing deals. This doesn’t mean you have to close every deal that comes your way, but the deals you do make offers on have to be closed as soon as possible. Realtors only get paid when deals close and they will not waste their time with investors who drag their feet and waste their time. It doesn’t matter if the property is $30,000 or $100,000 – if you show your realtor that you are a serious buyer they will recognize your hard work and eventually trust you with more deals. When you get an opportunity to receive bank owned properties, you need to pounce.
You may only have one chance with a respective realtor or lender. It is very important to have everything lined up and ready to go when the opportunity presents itself. You must constantly update your proof of funds letter, bank account information and anything else your realtor may need. The speed in which you can make your offer and close may just be the thing that separates you from other investors and offers in your area.
Bank owned properties differ from traditional transactions in that you are not working with a seller that will negotiate. If you make your offer filled with conditions and demands you can expect that offer to be placed at the bottom of the pile and quickly ignored. You want your offer to be as clean as possible and filled with all of the necessary paperwork. It pays to be first and have the most up to date information included in your offer as well.
There will always be deals available to investors who know how to network and find the best contacts. If you have aligned yourself with the right realtor and are prepared to act, there are still bank owned deals to be had in spite of what you may hear.