Has anyone on BP ever actually secured a property directly from bank asset manager?

Question

I'm sure everyone has read about acquiring real estate by getting acquainted with banks asset managers and buying the property before it's put on the market.

Everyone I have spoken to says this never happens and asset managers will not deal with investors directly.

My question is has anyone here actually ever bought a property directly from the bank before it hit the MLS?

Jerry W. · Answer

Yes, I did about 10 years ago.  It was a very small local bank so it was not FHA, it was a problem property and they wanted rid of it.  In fact the banker brought it up to me and showed me their balance due.

Lew Payne · Answer

Back in the late 1980's, that was possible, and yes... I have.  But from what I understand, all the "nothing down" and "be a real estate investor by taking this course" seminars of that same era forced banks to put up a firewall and only deal with realtors by the late 1990's.  Banks did not have the time to screen every crazy person who threw an offer at them, as the number of insolvent offers (down payment came from a ghost in the sky) grew and grew.

Cindi Boyer · Answer

Hi Josh,

Can you briefly explain subject to debt take over?

Thank you!!

Cindi

Robert Davidson · Answer

Don't even think about buying houses directly from any of the 20 or so largest banks.  They all use realtors, mostly to avoid liability. Also, they just don't have time to deal with one house/one investor.  You can have some success with regional/local banks and don't forget credit unions.  I've had success only when I have contacted the bank's asset manager or REO manger (small banks or credit unions) only when it is within a few days after the house did not sell at the foreclosure auction and is now an REO.  Because bureaucrats work slowly, it takes them several days to weeks to assign the REO houses to realtors and that is your opportunity.  Many banks have an REO section on their website, but make sure that any house shown doesn't reference a realtor contact.  If it gives a banker name contact, go for it, but obviously do your value due diligence first.

Nat C. · Answer

You're right on the money Lew Payne. Every man and his dog are now seemingly a property guru/investor/entrepreneur, despite not doing any deals, having 5 minutes experience, no actual cash but having read some books and websites.

Nat C. · Answer

This is in relation to a subject property I am desperate to purchase.

I found it whilst driving for dollars and tracked the owner down. Property records are still in his name.

I found out the foreclosure process has already finished and it's now owned by the bank. Unfortunately it's Bank of America, not a small rural bank.

There were clean up guys from the bank doing maintenance there today.

I have 2 schools of thought on this.

1. Get in contact with asset manager and tell them I would like to buy all the assets they have in the area. I have been with BoA for 7 years and they list me as a 'privilege member' for having a certain bank balance. Current balance with them is around 500k, which is not a lot but not a little. I've read they may deal with you if you will assist with offloading several properties or appear to be of assistance with offloading a lot of future deals.

2. One of my best friends is one of the top REO realtors in town. I spoke to him and he said he can try to get the listing. I certainly know he will present my offer as being one of the best to the bank (no dodgy or illegal behavior of course).

Nat C. · Answer

Very helpful; thank you Josh Caldwell.

Josh Caldwell · Answer

Yes I have but only once.  It was a rare instance with a very small bank (1 branch) and a personal relationship with the VP/asset manager.   I just happend to be inconversation with her about establishing an unsecured line of credit when she mentioned a problem property that the bank had just taken back.  It was a matter of timing in that deal as well.

That is my only success story, but then again, i dont spend a lot of time going after bank properties before they hit the market.  I try to buy them before the bank gets a hold of the property in the Pre-NOD market.   I approch people via diret mail when they start to fall behind and I offer them debt relief by way of a subject-to debt take over.

I hope that helps

Josh

Has anyone on BP ever actually secured a property directly from bank asset manager?

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