Isn’t that how it’s done? Don’t you call the bank and ask for a list of their foreclosures? If you call the bank, which department do you talk to, the mortgage department? CONVICT? Training Department? If you want to get into a bank’s inventory, there are a few things you can do to increase your success rate.
First, understand that you are not the only investor in your herd. Banks answer the question: “Can you provide me with a list of foreclosures?” perhaps more than any other. Potential real estate investors are under the mistaken impression that banks will sell their foreclosed properties for 0.10 cents on the dollar. While there may be cases where lenders have taken such a financial beating on a property, banks pay people to prevent that calamity. The bank has already foreclosed on the house, so they don’t want to lose even more money with too low a price.
Most banks refer such calls to their real estate department or REO. And unless you’re a regular investor or real estate agent, you may be sent to voicemail that never answers. Most banks work directly with real estate agents who specialize in working with REOs or investors with a track record.
So if banks only work with those who have an established relationship, how do you establish yourself if no one from the bank talks to you? By working with the real estate agent assigned to list REO properties for a bank. Banks will work with a local agent or hire someone within their ranks to prepare, list, and sell your inventory. By working with the agent who lists the houses for sale, you are essentially working with the bank.
All it takes is your first successful closing and suddenly you’re on the real estate agent’s “preferred” list. As an REO arrives at the bank’s inventory, he can expect a phone call from the agent alerting him to upcoming sales.
It takes the first phone call to the listing agent and your first closed transaction. Once you’ve closed your first deal, you’ll soon have a first name!
