How To Find Investor Buyers for Bank Owned Listings

By
Real Estate Agent with Mason Real Estate CA BRE 01444168

How To Find Investor Buyers for Bank Owned Listings

As an listing agent of Bank Owned Homes (REO) my job is multi-faceted from securing a property, cleaning it up for resale, generating reports to help price the property and the ultimately listing the home in the MLS and selling the property with a successful close of escrow.

As a listing agent, I rely on many traditional marketing methods to help sell the homes, as quickly as possible for the most amount of money for my seller client and the least hassle for my staff and I (as well as my client).

Ideally, I want to ‘double end' as many transactions as possible - therefore earning 60% more income.  You see, on the listing side, I typically earn a 2% commission after providing my asset managers with a 1% referral fee.  On the selling side, I earn the full 3%.  So, you can see why double ending makes sense to my bank account.

By traditional methods, I am referring to sign calls with a call capture toll-free number, internet advertising, agent-to-agent networking as well as door knocking the neighborhood. and the like.

DOOR KNOCKING

Yes, I'll pause here - I still do this whenever possible.  It is a great way for me to introduce myself as the listing agent and asking the neighbors to keep an eye on the home for me -letting them know the number on the sign notifies me immediately on my cell phone, if they ever need me.  I'll drop off a property flyer, a magnet, a pen, or whatever other branded trinket I may have at the time.

The best part of door knocking is no one else does it anymore.  I get to ask the neighbors face-to-face if they know anyone who may want to move into the neighborhood, as there is a great value right down the street.  I have had neighbors buy the home as an investment.  I've had neighbors buy the home to move their kids into it.  Others have referred a sibling or even a parent to the neighborhood gem.  Door Knocking works.

SURF THE MLS

This is perhaps one of the most effective methods I have ever used.  It's a little outside the box and would actually be considered reverse engineering.  You know what that is right?  Someone has a product that you want to be able to figure out how to make it for less, so you tear it apart and figure out what everything does so you can recreate your own version. 

This happens with import products coming to us from China, India and other corners of the globe.  It happens in the food business, all the time.  A new recipe comes out and then next thing you know everyone has their own version.  Well it happens in
Real Estate Too!

What I like to do, when I get a new listing is I'll troll the MLS Sold data looking at the recent SOLD listings for cash deals that match the profile of my listings; i.e. neighborhood, age, size, etc.

Once I identify my ‘short list' I'll take a drive by the property and more often than not I'll either find a crew doing their rehab work or a ‘For Rent' or ‘For Sale' sign in the yard.  In the case of a crew, I'll stop and strike up a conversation.  Maybe it's the owner and maybe it's not...but the crew definitely knows how to reach the owner.  Get that information and leave my business card.

In the case of a sign, I just call the number and strike up a conversation, letting them know there is more on the way and find out what their interest level is.

If I am not successful in making direct contact, I still gather the buyers name from the tax records and put them on a mailing list to announce new listings when they become available.

FOR RENT SIGNS


No only do I call on the signs of the recently sold properties, but while familiarizing myself with the neighborhood activity for my latest listing, I'll gather the information on all of the For Rent signs in the neighborhood.

This will allow me to achieve a couple of goals. 

1)         I can develop a very localized rent roll for the neighborhood that I can provide to my investor clients to help them justify the purchase of a property; and

2)         As I mentioned above, I can strike up conversations and figure out if the owner may be looking for additional real estate investment property in the Hemet - San Jacinto, CA neighborhood...or anywhere else for that matter (I love Referrals).

These methods may be outside the box.  None are expensive.  Implement them, and you will develop a buyers list for your investment properties...or any others that come on the MLS.

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Until Next Time, Have a Blessed Day,

John Occhi, ePRO, REALTOR®
DRE Lic No: 01444168


ePro,John Occhi,www.johnocchi.com,realtor      Certified Probate Real Estate Specialist Logo Awarded to John OcchiFive Star Logo,Certification,REO,Five Star Institute     

Excellence in Real Estate,Team Log,John Occhi,www.johnocchi.com,hemet,san jacinto,CA  

This blog and the contents written here is the intellectual property of John Occhi, Temecula - Murrieta, CA REALTOR® in the South West Riverside County region of the Inland Empire of Southern California.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 


I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

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Comments (5)

Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

John, These are great ideas. That's why you make the big bucks!

Nov 29, 2009 05:41 PM
Frank Kliewer
Woodinville, WA

Thanks John, that is a lot of good information . . . your generosity in sharing it is appreciated.

Nov 30, 2009 02:38 AM
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Chain,

How many big bucks can I make when my average home sells for $130K?

But the ideas work in your overpriced market too...

John

Nov 30, 2009 03:09 AM
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Frank,

Glad you appreciate the info...I hope you can put it to good use.

John

Nov 30, 2009 03:09 AM
Matthew Naumann
Exit Realty Charleston Group - Goose Creek, SC
Goose Creek, SC Real Estate Agent

John,

Great Post. These are definitely some great tips.

Thanks for sharing,

Matt Naumann

Nov 30, 2009 06:50 AM

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