There are lots of investors and real estate developers analyzing foreclosed property right now.  The lure of getting a whale of a deal on some prime development land is just too great.  And I personally believe now is the time to be looking, if you do it right.

You can find some home runs out there but you must know what you are buying and have a firm understanding of when the final product will come on to the market and what the demand will likely be at that time.

So if you are looking for that home run, how do you find it?

Well, don’t wait for the home run deals to come to you.  Once articles show up in the paper, like the Hamilton Pool article, odds are there will be too much competition to hit a home run.  (Too many well funded developers will be analyzing this property and putting in competitive bids.)

You have to find the home runs before they are listed and generating publicity and 2 strategies to do that are:

Talk with the banks.  Ask them what real estate are they holding right now – not just what they have listed and are actively marketing. Bank staff are busy and there is often a lag between when a property is foreclosed on and when it is finally listed.  If you are lucky, you will find something that you like and it will never be listed.

Talk with developers.  Many developers are hurting right now.  And nearly all would like to be sitting on more cash.  By contacting them directly you may be able to find some great property that they would consider selling.  If the developer is in real financial trouble, he may have some properties that are in foreclosure and others that are current.  You could negotiate a home run deal on any of those properties if handled correctly.

And don’t be afraid to offer less than what they owe. When the developer brings a willing buyer to the bank, they will listen.  Right now, they have to.

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Tagged as: real estate developers, real estate development