All Forum Posts by: Account Closed

The thread started some time ago. It seems like there is still a bit of interest. Not much was ever said about the asset management and sales side of the business. Odd given that was the start of the thread.

I am an end investor. Rather well established so dealing in individual transactions and portfolios. Mostly with the view of being a buy and hold investor but ever deal is different. I purchased my first REO in 1983 or 1984 (memory loss) in San Jose CA.

These days I focus a lot on deals that will cash flow if I am holding long term. I mean really cash flow after taking 40% off for running costs like property management and other things.

John Corey

1. Some of the time a lender will deal direct. Most investors who did such a deal were somehow involved in the auction process and agreed a deal immediately after the auction failed to produce a result.

2. Some lenders have a standard process and they would rather stick to it. They want to avoid having a process that is subject to abuse (playing favorites).

3. I know of one deal where the banker came to the investor with an REO they wanted off their books before the end of the fiscal year. A 1-off deal. The banker already knew the buyer. They were shopping for a solution rather than doing this as a standard process.

Expect it will take some time to see which banks deal before bringing in an agent. Also expect that many banks already had an agent involved before the auction (BPO or other services) so they might not have much interest in doing deals before a full listing. Best price vs. quickest deal.

John Corey

1. Contact local banks and see who is handling their REOs. Assume that most banks will have a favorite real estate agent for each market.

2. Check with local agents. In the larger brokerages there may be a person who handles the REOs and other similar disposals.

3. Contact local investors or a local REIA. Likely there is one in your area. See what folks there have to say. Local knowledge for what has worked in the past.

Note that in some markets there are not many REOs as the banks do not end up taking many back. In other markets there will be large display ads in local newspapers with many REOs on offer.

John Corey