6 Ways To Find Distressed Property Deals Now
Where can real estate investors find distressed property deals now?
There are still millions of distressed properties and motivated sellers out there. Where are they? How do you buy them?
Property auctions rose in August 2017, according to the latest data from RealtyTrac. As did pre-foreclosure filings and bank owned property levels. Auctions can be a great way to bag more discounts on distressed property. The downside is the limitation of needing cash to purchase them, and some auctions being bombarded by buyers who bid things up quickly.
The giant of social networking offers several great ways to find distressed properties. Investors can use it to run inexpensive ads and boost posts offering to buy houses, as well as to network and identify opportune moments to reach out to contacts and offer to buy their homes.
Real Estate Wholesalers
Rehabbers and rental property investors can skip a lot of the chase and cost by simply going right to real estate wholesalers who have already created a pipeline of distressed property deals, and serve them up on a platter. Find them and build relationships.
Building contractors are deeply tapped into the market. They know the builders who have run into trouble, the homeowners who can’t afford repairs after storms, and the investors who have stalled out in the middle of rehabbing houses. These professionals can be great referral agents.
Some larger investment firms have tapped into large and deep pipelines of distressed properties which aren’t available to the public. They have done great at securing large quantities of inventory, at good discounts. Yet, it can be most efficient for them to sell these properties through affiliate programs and channels which can move them in bulk, and can handle front line lead gen and some customer service. This can be a great win for those looking for access to consistent deal flow and inventory, and how may be better at generating buyers than wholesale deals.
Mortgage Notes & REOs
Bank owned REOs and mortgage notes are another way to acquire and control distressed property. Banks have held onto a lot of REOs for a while, and dragged their feet on processing foreclosures. They have been speeding this up more recently. However, as pointed out in a new report from DistressedPro, going direct to big banks like Chase, Bank of America, and Wells Fargo may prove a fruitless and grueling mission for most investors. These big institutions are now more interested in shifting them off their books in bulk to smaller and mid-sized funds who are going to attempt workouts or will them funnel them down in smaller batches, or as individual assets. These are the sellers that can make great resources for sniping REOs and re-performing or non-performing notes, which can be a path to taking title.
There are still many distressed properties out there. They come in different forms, and now sometimes through different channels and sellers than they did a few years back. There is plenty of opportunity if you really know where to look, make the right connections, build relationships, and prove that you are capable of doing good business.