Buying Directly from Asset Managers from Banks

[Swat Khan]

I was wondering if anyone is doing this strategy right now? Calling banks with distressed assets and navigating their way through to speak with asset managers for NPN's and REO? Lots of people say it doesn't work but I would like to know if anyone has experience implementing this strategy in today's market? Especially in commercial Multi-family.

[Waylon Themer]

I am an asset manager for a bank in Houston and I sold numerous properties directly to investors in 2011 and 2012. The problem is that our bank doesn't have much of anything to sell anymore. Good for the bank; bad for investors. The strategy definitely works if you find a community bank that has numerous assets to dispose of. Most community banks don't have much to sell these days. It will be tough to buy from bigger banks directly as they will have specific processes in place where the asset will typically go directly to a broker.

I will say more often than not, even a community bank will typically list the asset with a broker rather quickly so you have to watch foreclosure postings and call the asset manager the day before the sale and the day of the sale to see if the bank got their hands on it.

Everything @Allan Glass is spot on.