January 18, 2017
Every person wants to be in 'distressed asset' attainments today. It's the cool term of the moment in real estate investment rounds and it can be very profitable. Though there is more than one way to do this, some more gainful 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 NPA (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 NPA 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 NPA 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 NPA (non-performing assets) from banks than just NPA. 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.