A few years ago it seemed that there were very few deals to be had on the MLS and that the majority were “leftovers” from what other investors had already passed on. The real deals were negotiated with the homeowner prior to foreclosure.
I’m hearing more and more from people who submitted lowball offers to the bank and negotiated great purchase prices. I’m in the suburban Detroit area where the banks inventories are pretty high, so I would imagine that they might be a little more willing to negotiate here than most areas.
So my question is, with the time and money spent advertising for preforeclosures, weeding through and meeting with the homeowners just to listen to their unrealistic asking prices, is this strategy more of a hassle than it’s worth in today’s market? Are the preforeclosure deals that much better than what can be negotiated with the banks? I’m curious to hear everyone’s experiences with the two strategies.
I would be purchasing using conventional financing or with cash. I can see how preforeclosures would be attractive if you are wholesaling.
To be more specific, I have been rehabbing homes for others for the past few years. The uglier the better. In my case, logic would tell me that dealing with the banks would be more fitting since I’m willing to purchase and make repairs to houses that have been sitting empty for a couple years and are in really bad shape.
I was a birddog several years ago and the time and effort with preforeclosures wasn’t worth it. I’m sure my marketing could’ve used some critique, but even so, dealing with the banks seems more advantageous at this point. Thoughts on my line of thinking?
Using conventional financing, cash or HM, where are the majority of the really good deals being found?