Clearly, first you have to get around the assignment clause that most banks have in their contract when they sell foreclosures. What I do now is I either double close, or I have multiple hard money lenders that lend me the money to wholesale my deals - even if I have to close on them before I find the buyer for them.
Another thing to do is to focus on foreclosures that have been on the market for a while - 100 days or more really. At this point the banks are more inclined to negotiate which is a great advantage for you.
Another good habit I have is I always get thirty days to close. I start marketing the property before I sign the papers. It means once the realtor tells me I have the property I immediately start looking for buyers.
Although there are a lot of REO agents (especially if you are in a large city), only a few of them move most of the deals in the area. You definitely want to find them and build a relationship with them. A big REO dealer will not blink when you make a low ball offer. They don't care about the amount; they want your offer because they know that the more low offers they submit, the faster the bank will negotiate. Eventually the property will sell faster and at the lower the price.
A lot of the small time realtors don't understand this. They tell you the bank wont accept the offer before they even try to submit it. I am being quite direct when I tell them that they just need to do their job and let the banks decide. I try to be nice, but sometimes I get pissed and have to verbally smack them around. It's OK when they know you close all your deals and that you do a lot of them. But I don't recommend this approach if you are just starting out.
Another thing I do when dealing with REO's is I make a bunch of offers. I will tell you that right now 99% of the deals I pick up are foreclosures. You just can't beat the discounts the banks are willing to give because there are so many foreclosures out there. Most homeowners just can't or won't come down like the banks. - 16089
Another thing to do is to focus on foreclosures that have been on the market for a while - 100 days or more really. At this point the banks are more inclined to negotiate which is a great advantage for you.
Another good habit I have is I always get thirty days to close. I start marketing the property before I sign the papers. It means once the realtor tells me I have the property I immediately start looking for buyers.
Although there are a lot of REO agents (especially if you are in a large city), only a few of them move most of the deals in the area. You definitely want to find them and build a relationship with them. A big REO dealer will not blink when you make a low ball offer. They don't care about the amount; they want your offer because they know that the more low offers they submit, the faster the bank will negotiate. Eventually the property will sell faster and at the lower the price.
A lot of the small time realtors don't understand this. They tell you the bank wont accept the offer before they even try to submit it. I am being quite direct when I tell them that they just need to do their job and let the banks decide. I try to be nice, but sometimes I get pissed and have to verbally smack them around. It's OK when they know you close all your deals and that you do a lot of them. But I don't recommend this approach if you are just starting out.
Another thing I do when dealing with REO's is I make a bunch of offers. I will tell you that right now 99% of the deals I pick up are foreclosures. You just can't beat the discounts the banks are willing to give because there are so many foreclosures out there. Most homeowners just can't or won't come down like the banks. - 16089
About the Author:
About the author: Jesse Davis is an experienced wholesaler in the Jackson, Mississippi, Real Estate market. Go here for tips on how to wholesale Real Estate and to get a free audio on Wholesaling Real estate
