Locating Banks to Approach for REOs or NPNs

In my adventures I found that the FDIC has a website that provides reports each bank must file quarterly.  You can look up Banks anywhere in the US and find out what REO properties or non-performing notes, (NPN), they have.  Pretty cool huh?!

Go to the FDIC home page, click on analysts, then institution directory, institutions, then search for the Bank you want to know about.  Once the bank information comes up click on the FFIEC Call/TFR report.  scroll all the way down to schedule RC-M and number three gives you the amount and type of REO properties the bank has.

So whether you are looking for residential with 1 to 4 units, Multi-family 5+ units, or commercial (called nonfarm nonresidential properties) this report will let you know if the bank you are interested in even has them.  This eliminates wasted time trying to find people to talk to at a bank that has nothing to sell.

Scroll down to schedule RC-N and you find the non-performing 1st notes and junior notes separated into categories as well.  These are further expanded to indicate how long it has been since the last payment

I am picking on the smaller banks because the larger ones have systems in place to deal with them.  Also banks are basing their decisions on the bottom line, so if the person in charge of the REO propertied feels the bank can sustain a smaller lost by avoiding repairs, realtor fees and additional costs associates with a long marketing time, then we may be a favorable solution to their assets better used in making loans.  This is true in a greater degree the smaller the banks.

Once my list reaches a couple dozen or so I plan on finding the best way to contact the decision makers.  More on that next post.

While the big boys chase medium to large institutions I believe there is a market for the novice investor to get started. It only takes one deal and your confidence will rise. Just remember to do your due diligence. If you are careful you can make an exciting amount of money on your first transaction.

May the road rise to meet you.