How do you source and track the potential distressed opportunities?
For example, when/if owners have to give keys to lenders such as the Arbors of the world, and they subsequently sell, how do you get a look at the deal?
Anything beyond continuing to check in with brokers and lenders? Hoping to get proactive.
I'm a simple minded Acq guy (read: not experienced in higher finance / complicated debt stuff), but am lucky to work for a group with dry powder. Historically, have done simple and straight down the fairway deals. Hoping to pick up some good buys soon, but feel like the approach so far may be too rudimentary.
Anything you'd suggest to get more proactive in sourcing?
Based on the most helpful WSO content, sourcing and tracking distressed opportunities can be a bit of a challenge, but there are a few strategies that can help you get ahead.
Firstly, you need to be proactive in reaching out to owners and brokers. Don't just wait for them to call you with opportunities. You can research property records, find out who the true owners are, and find a way to contact them or their representative. Believe it or not, a simple Google search of the owners' name can sometimes yield results.
Secondly, you can drive around the area where you want to do deals, especially early in the mornings on weekends when there's less traffic. Look for abandoned or distressed properties, get as many addresses as you can, and then spend some quality time on your county's tax assessor's website. You can get property details and owner information there.
Lastly, you need to master the art of modelling. It's a key skill right now and while it may not be a differentiating skill forever, it's still something that top people in the field do from time to time.
Remember, this is a bit of a Wild, Wild West situation. Everyone is out for themselves and will not hesitate to cut your throat if it benefits them. So, study, study, study, and start small. And then study some more.
I hope this helps! Let me know if you have any other questions.
Sources: From Real Estate Finance to Founder of Development Company - Q&A, How to source, finance and execute your own deal as a Junior?, How did you transition from an analyst/support role to a sourcing/production role?, Alternative Lenders & the End of Risk Taking for Banks - Opportunity or Risk?
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