Discover How to Search and Locate Lowest Priced REOs & Short Sale Properties

Let’s face it our existing real estate market is going to be around for awhile. If you intend to be an investor in this market there are a few guide lines you need to follow in finding and prospecting for short sales. I learned a long time ago that it’s much easier to close a deal and earn the trust of a seller when the leads are referred to you or you’re introduced to the seller. So it goes without saying your best leads are referral from a friend, family member generally someone you know including your local real estate professional, especially, if they specialize in the REO, Short Sale and Foreclosure markets. However, these are not the only avenues in finding good investment properties for you. Let explore some of these prospecting areas.

Personal Referrals

Absolutely one of the best ways to locate a good short sale. Someone you know who knows another person that is having problems with their mortgage lender and can refer you directly or introduce you in person to the party having the mortgage problem. They are in a position to stop making payments on their mortgage or have missed one or more mortgage payments. You are there to help them with a short sale thus saving them from a possible foreclosure. Yes, it’s possible for these people to call the lender and to request a loan modification. And, some of them do. Many of these loan modifications end up back in trouble and have to be bailed out to forgo the foreclosure. In a recent short sale that I handled both the husband and wife lost their jobs and were having trouble finding jobs. There was only one way we could help them and that was with a short sale. However, you are limited to the amount of referrals you are going to receive this way so if you’re in this game for the long haul you’re going to have to search other ways to find these properties.

Read about:   A Jungian Psychology Approach To Anxiety

Farming an Area or Neighborhood

Many of my real estate cohorts will probably slam me for telling you this one but it is how many of us find listings and it’s a great way for you to find sellers who are in trouble and have not searched for answers to their mortgage problems. This form of marketing is a system you must develop in a specific geographical area usually in a neighborhood where you will be specializing in. You will have to put together marketing materials branding yourself as the area short sales expert. Monthly mailers and door to door contact is necessary. You will also have to leave brochures and fliers at local business where these neighbors will see your information.

In order to do this you will have to present yourself as the one person that has the knowledge and expertise to help them through the short sale process. You will have the buyers or investors in place. You know how to negotiate with the banks and have all your paperwork ready to go when the seller says let’s do it. Branding yourself this way means that you should have testimonials to show the sellers and past sales explaining how you helped sellers through these Short Sales experience. It will take some time to penetrate this local market but when you do you will reap the rewards that you are looking for.

Property Managers

The great thing about networking with PM companies is that their clientele are obviously other Investors so they do understand the investor world. Most importantly is most PM companies don’t have a solution for their clients when the clients are having trouble keeping the property and are facing foreclosure. When the PM Company can offer you and your services to these investors it provides value to not only the PM Company but also the client.

Read about:   Learn How Short Selling Your Home Will Affect Your Credit Score

Real Estate Professionals

Searching and finding the right real estate professional can be a frustrating endeavor in itself. Yes, there are many real estate agents in your area, or use to be, but finding the right one who specializes in REO’s and Short Sales can be a time consuming. You need to find a busy buyer’s agent, not one that only closes a few deals per year, but one that knows how to locate the REO’s and short sales in his or her effective market areas. There are many ways to search these listings out of the MLS and a good real estate agent will have his home finder computers programmed to locate and send these listings to you in a timely manner.

Many REO’s and Short Sales are now being purchased by many of the first time buyers that are savvy buyers using their real estate professional to locate and show them these properties. However, in either case after you submit an offer on these properties there will be a long wait until the bank gets to your offer and starts it’s processing. My latest is in its 3rd month sitting on one of the bankers desk. The positive side to this is that if you can wait, more than likely you will be able to get a real good deal on one of these properties. How do you find these agents? Well the first thing I would do is check out some of the local agent websites to see if they mention anything about investment property, specializing in REO or Short Sale property.

Read about:   Adjustable Rate Mortgage (ARM) - A Viable Alternative for the Short Term Home Owner?

They don’t necessarily have to be the REO or Short Sale Listings Agent. All they have to know is how to find the properties in the MLS, determine the existing property value on them and understand how the short sales process works or understand what the banks are looking for when they sell their REO’s. Then, find out how many buyers or investors they have worked with successfully in purchasing these great properties.

Real Estate Investment Associations

You can also associate yourself with a local REIA (real estate investment association). At these meetings you will find lots of information and investors that have properties that need to be purchased. You’ll also find Hard Money Investors for your deals along with some excellent networking possibilities in finding REO’s and Short Sales properties. I leave you with one parting thought and that is to find your right investor comfort zone and stick with it. With a well planned and systematic search you will become the expert in your area for finding these great investment properties.