Foreclosed Property
and Wholesalers

Want a steady stream of foreclosed property? Use wholesalers. For the real estate investor, wholesalers can be your biggest asset.

By now you know my opinion of wholesalers. The wholesalers who take this business seriously have already done 90% of the work required for those interested in real estate foreclosure investing.

Wholesalers focus most of their effort on foreclosed property. First by developing the necessary contacts with banks, lenders and real estate agents. Then by sifting and sorting through hundreds and even thousands of foreclosed properties at one time. From there they physically visit a great deal more. And finally make available to their clientele, the best of the best foreclosed property, from the latest batch.

Generally what is left with the banks and real estate agents are properties rejected by the bulk REO wholesalers.

I would like to make it clear that these wholesalers do not receive all of the best deals....just most of them. Also, foreclosed property that is undesirable today could be a gem next week. This usually happens when a foreclosed property sits for a long period of time. The lender decides to dramatically reduce the price to move it.

If you manage to get an REO list from a lender or real estate agent, check the status of the properties on that list, weekly. You never know when downward adjustments are made to the inventory.

Many ask how to buy foreclosures? My number one answer is to locate and develop a relationship with several wholesalers. After doing your research as we recommend our Time Value Real Estate Investing, investors do, you will quickly know if a wholesaler is worth your time.

Their prices, as compared to what your research dictates you can offer, will let you know if the wholesalers prices are too high.

Good wholesalers who buy well, will always be within your purchase range. They know the better their prices, the quicker you make decisions and the quicker they sell their inventory.

It takes an enormous amount of time to sift through large groups of available property, physically inspect them, then reduce the list(s) to only the true gems.

As a TVREI real estate investor, saving time and money are the most important aspects of my investing career. I believe strongly that letting the "experts do what the experts do," is key to your short and long term success.

Wholesalers are experts at finding the best foreclosed property available. They also buy at levels it will take years for many to achieve. In fact, the good wholesalers will consistently offer foreclosed property at prices far below what you would get, by visiting the very same sources of property.

You will always need to prove you ability to perform, over time.

You are not paying more for the property. This is because you could not buy it as cheaply as the wholesaler is selling. Dealing with the right wholesaler will actually save you money, even with the profit they make on the sale.

But again. What I really love most about good wholesalers, is the time they save me. All the inventory I receive from them are good deals. Some properties are better than others. So out of a list of, say, 20 properties, I may select 12 excellent deals and leave 8 really good deals.

Any real estate investor should appreciate this type of service tremendously.

With the contacts I have developed over time, I can purchase at bulk REO wholesale prices. However, the time saved by dealing with my favorite wholesalers, is worth me paying a bit more than I can purchase myself.

The time they save allows me to buy, at least, triple the properties I could, if I had to do the full sifting, sorting and inspecting of the entire inventories of available property.

Because of their services, I only sift, sort and inspect the best of the best. This is a much shorter list and is much less time consuming.

How to buy foreclosures? Locate and develop relationships with good quality wholesalers.


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