Need help marketing to foreclosures 23 posts by 15 users

Posted: 05/28/2008 at 07:55AM

Hello,
For the past several months, I have been setting up and implementing my marketing programs. They include sending yellow letters to pre-foreclosures in areas I like, mailing postcards to my farm areas, and sending letters to absentee owners in two suburbs I like. I'm starting to get alot of calls, but unfortunately most of them are from pre-foreclosures who are upside down on their loans, from non-motivated sellers in my farm area who want a market price, and from absentee owners who own rent haouses and are not willing to owner finance or be creative.

It appears that the truly motivated ones, and the ones who have equity, are not calling me. I am not experienced in short sales, so have been looking for homes with equity for wholesaling and/or doing lease purchase deals. I have checked the tax records on some of the ones who have not called, and many of them appear to have equity (judging from the amount they paid versus the current market value).

My question: what techniques have been successsful in getting the really motivated ones to call? Maybe I need to do the calling myself? Any suggestions would be appreciated. Thanks, Mike

Posted: 05/29/2008 at 07:56AM

Thanks, yes I was quite surprised when i sent out my first 100 absentee owners mailer, and I have gotten about 25 calls so far. Maybe I wasn't as screening as I should have been. My letter was merged and printed, not hand written, and pitched them to sell to me direct and save commissions, and get out of the landlording business. I sent them in an invitation envelope, not sealed but tucked under, hand addressed in red, with a two line return address sticker on the back and a real stamp.

I hold down a full time job, so it has been quite busy and challenging for me to call them all back, frankly. Some are more motivated than others. I only wish I had more cash to work with, as they might be willing to owner finance with some down payment. Again most of the ones calling are upside down on their loans. Thanks again, Mike

Posted: 06/05/2008 at 05:33AM

So, what do you suggest to get set up with such a program? I am not a computer geek unfortunately. Wish I was. I have a domain name and a free website www.urbanpioneerservices.com, but haven't really taken that to the next level. I have not wanted to jump into the expensive plans that are offered by some.

Posted: 06/05/2008 at 11:30AM

I guess I have read several books and heard from gurus that it is possible to find people who are motivated who also have alot of equity. The idea would be to put together a win win situation where they would get a portion of their equity, leaving enough on the table for the REI to get his fee and the end buyer get his discount. Like you said, probably not as common these days. You are right though, I am learning about short sales as well so I can try it insteads of just losing my leads.

Posted: 06/16/2008 at 08:18AM

I'm starting to get alot of calls, but unfortunately most of them are from pre-foreclosures who are upside down on their loans, from non-motivated sellers in my farm area who want a market price, and from absentee owners who own rent haouses and are not willing to owner finance or be creative.

It appears that the truly motivated ones, and the ones who have equity, are not calling me.

I know you have a full time job, but you have got to make some time to follow up with these individuals; perhaps they are motivated, but other things are on their plate, they just simply forget or they are too busy being " wooed" by people who are actually taking the time to follow up. Incorporate a follow up system into your marketing, whether you do it or you find someone else to do it for you. I don't think it's good to rule the first three out completely, but if you are trying to further your dollar, and your time, concentrate on those individuals you feel are motivated and not making the effort to call you. I'm sure they will appreciate your take charge approach and it shows your serious about them when you can be proactive instead of waiting on them to do everything first.

Posted: 06/18/2008 at 10:47AM

I think one thing that people overlook is the content of your letter.

Are you focusing on what you want (to buy their home) or what they want?(to avoid foreclosure and move on with their lives) Your results will likely improve if you are able to connect with them and appeal to their emotions. Most of these people are getting a few letters every day, so yours must stand out if you are going to be the one they call!

Posted: 06/19/2008 at 11:23AM

marketing to foreclosures is becoming a waste of time since lenders are now more motivated to give those owners solutions to keep their homes. now you are not only competing with other investors and professionals, you are also competing with lender incentives. that makes it really tough to work a deal with the owners. just know lenders can reach the owners before anyone.

its best to get a list in other niches and hit them up.

Posted: 08/18/2008 at 05:30PM

Mike,

My 2 cents...

I would go in the exact opposite direction as everyone else has suggested.

I'm gonna go out on a limb here and guess that you're still waiting for your phone to ring, right? I used to make the same mistake.

Does your phone have outgoing service?

My suggestion is this...NEVER leave your mailing campaign solely up to sending letters and waiting! The "marketing" is secondary and is basically only another hook in the water.

Deals only happen after contact is made (either in person or over the phone). Not everyone (even motivated sellers) is comfortable calling a number on a letter sent by a complete stranger.

Hopefully, you're at least providing the out-of-towners with a toll free so if they do decide to pick up the phone, it won't cost them a dime.

Think about this...in the 3 days it took for that mailer to make its way (hopefully) into the right hands, you could have attempted to call (or drive by for local owners) every owner on your list and be way closer to making a deal happen than simply waiting for your phone to ring or checking your mail each day in hopes of receiving one of your letters back stamped "No longer at this address", etc.

Start picking up the phone and calling out of state owners and start knocking on doors/calling local owners in addition to your mailing campaign and you'll notice your "close rate" significantly improve!

"And that's all I've got to say about that" ~Forrest Gump

Posted: 08/20/2008 at 01:18PM

Thanks everyone for your input. I am implementing alot of good suggestions.

Posted: 08/21/2008 at 06:30AM

Mike,

Have you considered adding different marketing mediums to the general areas that you are targeting? This would be in addition to the mailings that you are doing.

For example, when targeting a specific area, invest in putting ads in news paper/newsletters that serve that general area. Also, maybe put signs up in those areas, or just hand out your business cards to community groups there. That way, their eyes can see your message in a variety of ways.

As for as having the funding, there are some low cost ways of doing it.