How to Find Bulk Packages
There’s several ways to find them. Some are more effective and time efficient than others.
Relationships play a heavy role in whether you’re successful in this business, just like any other business.
Don’t worry; I’m not going to turn this into a seminar on building friendships.
But once you’re around for a while and people trust you (and know you can perform), finding packages gets a whole lot easier.
Call Banks Directly
This way will take some work, but it’s effective if you attack it with some tact, and you’re persistent.
I’ve found that it’s a lot easier to deal with smaller, local or regional banks. They seem to be more responsive with this approach.
To get a list of all of the banks in the area where you want to focus on, go to TheCommunityBanker.com.
Once you’re there, you can search by state and find all of the banks in your target area, along with the phone numbers to the banks.
Then you can just call them and ask if they have any bulk foreclosure or REO properties. If the person that answers doesn’t know, ask if they can connect you with the manager, or someone else that might be able to point you in the right direction.
My mentor in the real estate business that taught me about bulk REO’s always taught me to differentiate myself. To stand out, if you will.
You’d be surprised to find out how many people call these banks all the time and waste people’s time.
So to help show them that you’re serious, find out about what non-performing assets the bank has BEFORE you call them.
That way, you can bring up some numbers about their bank to show them that you’re serious, and you’re not a waste of time.
Search Bank Inventories Online
Going this route is beneficial, because when you approach the bank with the information you get this route, you come across as
credible and sharp.
- You can search online to find a bank’s inventory by searching the FDIC.
- Once you’re on that page, choose the state you’re interested in.
- Under the ‘Asset Concentration Hierarchy’ category, choose “Mortgage Lending Specialization” from the dropdown.
- Then click ‘Find’. That’ll list out different institutions in your target state. Pick on the number besides the bank you want to look-into.
- Make sure “Assets and Liabilities” is selected in the ‘ID Report Selections’ drop down. Under “Reporting Date” select the end date of the most recent quarter. Banks have to report this stuff every quarter.
- Click ‘Generate Report’.
- On the next page, scroll down and click on “Other real estate owned.”
- The next page that comes up will show stuff that was foreclosed on that’s on their books. The numbers you see represent how much in “other real estate owned” assets they have. You want to add three zeros to what you see in the number column.
- So if it says 8,719, for example, that means they have $8,719,000 in REO property. Below that number you’ll find the breakdown of all the different types of inventory that makes up that $8.9 million in REO assets.
I’m not vouching for their service, nor do I know anyone that has used their services.
I read about them in an article somewhere, and saved their website to my Favorites on my Internet browser.
I was just mentioning them as a resource you might want to look-into.
Find a Reputable Bulk REO Trader
If you’re just getting started, this is the most time efficient way to get some progress.
This might be the best method of finding these properties if you’re first starting out, as it takes less research to get to the product.
Kenny Rushing has a Bulk REO Trader system that you can look into buying. I’ve read some good reviews on it.
And no, I’m not affiliated with him, or his system.
Banks Might Have Minimum Buys
Certain banks have minimum numbers of properties you have to buy if you want to buy in bulk.
Of course, the minimum amount depends on the bank you’re dealing with.
For example, some have minimum property stipulations for certain states and no minimum buy standards in other ones.
How did you personally become interested in buying in bulk? I’m curious. Leave a comment below!