Where to buy foreclosures has been a question we have been approached with for nearly a year.  Believe it or not, buying them is not a problem.  A simple realtor search on the MLS will get you a broad inventory of bank owned homes.  The problem is here that the banks intentionally set a very low price on the listing to trigger a bidding war.  It is so draining and frustrating that we do not even bother with listings much anymore.  A home listed at $50,000 will likely sell for upward of $70,000 after the war is over.

We have found that wholesale investors are the way to get the best deal unless you have a very good connection with a bank or an asset management affiliate.  We use all three.  For our local markets, we utilize our bank relationships to purchase bulk properties at a substantial discount.  We will add our wholesale fee to an individual home and sell it way under current market value. 

I recently referred a friend of mine to an investor in Arizona that I knew.  He was frustrated over the retail agent MLS concept so this investor held a small residential portfolio from the bank and sold it to my friend for 10% over what he (investor) purchased it from the bank.  The final price to my friend was still about 15% under current values, a great deal.

Typically, a good wholesaler has extensive relationships with resources.  This is our job and we make money by our own portfolio and selling them wholesale style.  It is a win-win situation. 

Many investors will attempt to circumvent the system and call banks direct.  I can honestly say that I have seen their success less than 5% of the time to achieve a true steal. 

Working with your peers and advisors can lead you to a path of success.  It is nothing short of the simple concept of teamwork.

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