Flooring Contractor · Bethalto, IL · Member since 2009 · 26 posts · 2 votes
I have been a member of BP now for about 2 weeks and I have to say that the information is in great abundance here. That is sort of my problem. I am taking all of this information in, but I think I am trying to take it in too fast and need a little advice on where to start. Too many niches that I didn't realize existed.
I am looking to learn a little more about buying properties before they hit the MLS as an REO. My father and I have flipped a few houses already and fared well buying them as REO, but we can do better. I did not understand some of the aspects of real estate until I came here to BP.
Any advice as to where I might start putting together this information so I can act with my two feet forward? I want to learn more I just need to be pushed in the right direction.
Any books or other information I can use would be appreciated. Thanks again Everyone, I appreciate the advice.
Jason
Los Angeles, CA · Member since 2009 · 717 posts · 50 votes
16y
Hi, I don't remember the exact like but Peter Girardi and Will Bernard did a interview that I heard not too long ago that gave great info on REO's (Members here). Sorry if I didn't spell your last name right Peter. I don't have the link off hand, but if I find it, I will post it here. Good Luck.
Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
16y
Jason,
First key is to ABN (always be networking)
Second key is to ABL (always be learning)
Third key is to NEVER let emotions in the game.
You have been blessed to find BP as there is more opportunity to learn and network than anywhere on the web. People are always here to answer your questions and all of us want to see you succeed!
Keep up the great work, and feel free to contact me anytime if you need advice!
Rental Property Investor · St. Louis, MO · Member since 2008 · 189 posts · 75 votes
16y
Hey Jason,
I'm working on the same thing. What I have found in this area is that you won't get any REO before they hit the MLS if they are coming from the big national banks. Best bet is to start forming relationships with small local banks and see how they handle their foreclosures. The other route is to form relationships with some of the REO agents that handle the big bank REOs to at least get some advance notice (I haven't had luck with this but others have).
Small world, I lived on your side of the river in Holiday Shores and worked at Winchester so I drove through Bethalto everyday.
Good luck
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
16y
Originally posted by Mike V:
Hey Jason,
I'm working on the same thing. What I have found in this area is that you won't get any REO before they hit the MLS if they are coming from the big national banks. ...
The REO I have under contract right now was a pocket listing, WaMu was the original lender (now part of JPMorgan Chase). Big national bank IMO, so don't let the quoted statement keep you from trying with any bank regardless of size.
Rental Property Investor · St. Louis, MO · Member since 2008 · 189 posts · 75 votes
16y
Steve,
So how did you find out about this pocket listing - is your contact with the bank or with the REO agent? I have yet to make any progress pursuing either. Which should I focus my time on? I have bought several REO listings (all thru a buyers agent) so I have some proven track record on following through. Any help is greatly appreciated.
Thanks in advance.
Flooring Contractor · Bethalto, IL · Member since 2009 · 26 posts · 2 votes
16y
Mike,
Yeah it is a small world. My fiance and mom work down at Olin as well. My father and I have a good relationship with a few banks in the area so I know we have a few options to address there. I am just wanting to learn the right things that will help me understand this niche business. Rehabbing is my thing, but I would like to understand different options for purchasing before the home falls into the REO category. I am learning and have tons of information with BP and books that I have purchased to help me get the know how I need. It just is alot to try to decipher in the beginning, but I feel like everyday I am learning more and more. Everyone that I have asked a question to here on BP has been awesome.
My other issue is that I am kind of partnering in this business with my dad to start, and he has an agent that he has used in the past personally that he has approached to help him find some properties for us. I dont want to cut him out but I feel like I can find the properties just as quick as he can if I do my research. I know who the different REO listing agents in the area are. I just need to get past the point of making the buyers agent happy every time and getting the deals the best I can for our business. We will get there though.
Harrison, Thanks for the advice. I know that it is hard work and not easy but if you strive for something and don't give up until you have it, anything is possible.
Appreciate all of your information and support.
Thanks
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
16y
Originally posted by Mike V:
Steve,
So how did you find out about this pocket listing - is your contact with the bank or with the REO agent? ...
Well, actually BOTH! :idea:
Contact the bank to find out who they use to list a property; I have found them to be happy to tell you that info because they want the property moved off their REO inventory. In the couple of cases where the property wasn't yet handed off to be listed with an agent, the lender was even willing to offer the property for sale (but they were rather unwilling to negotiate on price).
Once you know who has the listing, then you work with that listing broker...
I'm not saying any of that is easy, but it can be done.
The fact that you have closed REO using a buyer's agent means that you already have been in contact with a listing agent on those earlier purchases. Now go and talk to the listing agent for those deals, and see what they have coming into the pipeline; they know that you did perform already, so that is to your advantage.