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There Is More Than One Way to Buy Non-Performing Assets From Banks

April 15, 2012 | Comments: 0 | Views: 90

Everyone wants to be in 'distressed asset' acquisitions today. It's the cool term of the moment in real estate investment circles and it can be incredibly profitable. However there is more than one way to do this, some more profitable than others.

For years now Realtors have listed just about everything as 'foreclosures' in order to give the perception of a discount. However, it is clear that it is normally far more profitable for investors to go right to the source if they want to enjoy the best bargains and realize the biggest spreads. This means acquiring non-performing assets direct from banks.

Some still like to chase after individual property owners in the hopes of digging up a few nuggets among 'motivated sellers' but once you do the math it is pretty obvious that buying non-performing assets from banks can be far better. It certainly beats splurging on a ton of marketing, only to deal with bull-headed, unrealistic and flaky sellers on the street.

On the other hand those electing to purchase their non-performing assets from banks are tapping right into the spring and are able to connect directly with many of the most motivated sellers on the planet.

While single family homes are normally the first obvious step for newbie investors, there are other options. In fact, in some areas even bank REO inventory of residential homes is very low. However, real estate investors can still pick from commercial properties, construction REOs and even multifamily apartment buildings. Of course those set on finding distressed multifamily properties will need to invest in some good software and be prepared to do a little hunting as these are perhaps the hottest items of the moment.

What many don't realize is that there are far more options for acquiring non-performing assets from banks than just REOs. Bank owned foreclosure properties are great, though there is nothing wrong with diversifying either. In addition to actually buying properties themselves, investors can also just buy distressed property notes and non-performing loans. These can provide great discounts, income and can even be flipped, often with a lot less hassle than dealing with the bricks and mortar, hands-on.

While, perusing what these lenders have to offer in terms of non-performing assets, note banks also have a range of business loans and debt which can be acquired and re-structured for profit. Keep your eyes out for sweet spots which other investors overlook in their stampede like mentality to chase foreclosures.

Tim Houghten brings 12 plus years of real estate industry insight to the table in his writing for Tim picked up the travel bug at a young age from his missionary parents. He is now a Freelancer, business consultant, and travel writer who has ventured across much of Europe, North and South America living the jet set lifestyle as an international nomad on the constant exploration of new sights, sounds and tastes.

Source: EzineArticles
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Non Performing Assets Banks




Distressed Property Notes


Foreclosure Properties

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