Partnering With Distressed Commercial Real Estate Wholesalers: Your New Business Model
With pools of residential properties moving off of the balance sheets of distressed banks for pennies on the dollar, plus dire predictions of a new wave of commercial property foreclosures in 2011, how can the smart professional come out on top and deliver win-wins for everybody? Peter Mosca’s panel session at NAR Annual tackled that question with an array of specialists in the distressed property market including Michael Anderson from RealSource.net, Scott Carson of WeCloseNotes.com, Linda Yates of Foreclosure.com, and Steve Ferrara of Ferrara Financial Group.
New Norm? The question of whether a “new norm” in the real estate market was upon us was answered by Michael Anderson who recalled a similarly depressed market in the early 1990s following the S&L crisis and the RTC was able to rebound due to job growth and a tech boom soon following. He then noted that no similar factors seem to be in the cards this time around.
How To Handle Notes Scott Carson is a specialist in the notes market, doing short sales, closings and flips. “We target distressed banks and buy their assets”. The advice: never buy an asset you’re not ready to own – the days of the 90 day flip are over. At the same time, notes are more flexible than properties, meaning interested brokers should kow what they are doing, but take action.
Local Expertise Is In Demand According to Anderson, the need for real estate professionals hasn’t been higher in his 38 years in the business. Example: a recent asset pool he purchased had 1400 loans spread over 12 states. “I have expertise in my own state. Wholesalers are ending up owning a lot of assets they have no idea about.” Local RE pros can step up to offer their knowledge and services to make deals work.
Where Are The Best Websites? The hunt for opportunities in depressed properties can be aided greatly by the web. Mike, Scott, Linda ad Steve all contributed to the following list:
Best sites to find distressed real estate assets:
bankrate.com – for finding FDIC-visited banks
fdic.gov – for the failed bank list, and lists of asset sales
debtx.com – one of the largest wholesale liquidators of paper
The entire session in recorded form can be had at playbacknar.com