How to find an amazing deal on a bank-owned property

by Mike Watson on November 11, 2008

Last Monday, one of my co-investors asked me how the multi-billion dollar economic bailout would affect Seller Financing and other similar financing techniques.

I think we are still a ways away from seeing much effect from the bailout on regular mortgages and loans. Even with relief, banks will still be bloated with foreclosed properties they are desperately trying to unload.

So, how do you find a great deal on an REO or bank-owned property? Here are a few tips:

1. Focus on small credit unions and banks. You can often find the REO portfolios for these local banks on their websites.

2. Look for the income-producing properties in the REO porfolio first.

3. As I’ve said before, banks WILL seller finance to you. However, DO NOT just walk in and “ask for Seller Financing”.

4. Instead, visit your bank’s REO representative, and tell them, “We are willing to purchase any of your REO / Loss Mitigation / Bad Debt portfolio list that:
- Meet our criteria, OR
- You (the bank) are willing to finance

Those are just a few tips. You can find more on any one of my recent Training Calls and Webinars.

I’ve also just introduced a new tool called “THE List” that is helping many of my students uncover amazing new Seller Financing opportunities. I’ve called this tool, “The Most Profitable Tool In Today’s Real Estate Market!”. If you’re serious about finding and profiting on real estate deals right now, this tool should be one of the big guns in your “Non-Compete” arsenal.

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