What's The Best Way To Find Out About Commercial REO Props That The Banks Have?
Besides getting to know the individuals that run the REO departments at the banks, what is the best way to find out about these props?
I see web sites everywhere that will give you info on single family homes that are in this catagory (of course you have to join their sites first), but I have not found any that deal with commercial and multi-family properties.
Any ideas?
I just bought a duplex (REO) in Indianapolis through a real estate agent. There are a number of small multi-family units that are bank owned that are listed.
I am yet to come across anything very big.
did you find this duplex listed on the web somewhere? If so, can you tell me the web site
I have a partner who found it through a RE agent. I believe it was in MLS.
thanks for the reply. Do you know if anyone can access the MLS system, or do you have to be a realtor or member of something?
Any RE agent will have MLS listings. You can work through them. It will not cost you since the commission is paid by seller (bank).
On the http://www.Realtor.com site you can search by town and proprety type and get a majority of whats on the MLS. Some specific banks that have property nationwide are FannieMae, FreddieMac, http://www.Indymac.com.
The best way to find REO properties that are commercial and multidwelling.
Now you must remember when a bank makes a biggy loan on a piece of commercial property, they really spend some time checking it out. The appraisal is for real, the credits are really scanned and the persons involved are known to the bank. Most of the borrowers are customers of the bank and have been for some time.
Of course there is a relationship between the the parties and of course there are some rather large sums of money involved.
The good stuff is handled very close. if the banker does not want the property and most banks don't . There is generaly a little group of private lenders, big customers of the bank that are bank sponsored. They will in many instances buy the note prior to final sale and go sideways, that means control the sale. If they can obtain a Deed in Lieu from the person being foreclosed on they will, cancel out the forclosure, the bank looks good and the dear friends have another goody to stick in portfolio.
Home Savings and Loan. Mr. Ahman-----
Bought flunky little savings and loan during the big depression, he was just a small mortgage broker. But away he went. He looked at every beginning foreclosure and his group of private investors stepped in and grabbed.
It was very frustrating to a single little Broker/Investor like me. I went to see him and complained that all the really good stuff never completed and most never got as far as a Notice of Default it was all settled prior. "Well, kid," he said, "Why dont you come back and see me when you can buy at least 10 maximum CD's. Then I'll talk to you."
I asked for credit to buy the CD's and he threw me out.
Does that answer your question? To play the game you need to be watching the big ones and when they falter in management, then insert to buy, long prior to a Notice of Default.
See I keep telling you go mix with the Brokers, the Property Managers, The Syndicators, now they are fun. Just watch your wallet, wrist watch and girl friend.
I hope this answers Lucius
Two other comments. First Indiana ranks very high in foreclosures. I have heard it is number one (probably per capita) so the local MLS will have many REOs. Second, always pay attention to Lucius-- particularly the part about keeping watch on your girl friend!
There is a new publication coming out called REO Investor, which was created by REO Monthly, the trade magazine for the REO industry. The publication allows an investor to advertise directly to the bank, what kind of properties they are interested in buying. The magazine is distributed to over 10,000 asset managers in banks across the country. I just pre-signed up for the April/May launching. You can contact the publisher at **Please See My Profile** for more info.
Good Luck
Another suggestion is to get to know the individuals in the bank's managed assets department. That is the group of people responsible for collecting on loans that are out of covenant or in default.
It may be a variety of secured or unsecured loans, but many times the company that is in default has some real estate too.
You may be able to purchase the real estate to help them settle up on their other non-real estate debts to the bank.
I know this because I prospect managed asset or workout departments and provide financing to distressed companies against their commercial real estate to help them get back in the bank's good graces.
Also, a number of Realtors with whom I work have nestled close to several attorneys who have good relationships with foreclosure departments, and directly with some banks. It just takes wading through a lot of unaware/unqualified/clueless people before you strike gold.
Best wishes!