Finding Deals??

Question

I personally do direct mail and cold calling but haven't had much success lately.

I've heard of investors who get listings from realtors and submit offers. Is this a good route to take or is it a waste of time?

Can anyone share the strategies they are using which have produced results?

Jimmy C. · Answer

I used to work PRE-foreclosure leads here with direct mail and telemarketing.  It was great back in the day when people had equity and the market had not declined yet.

Now those leads wont do me much good, unless I want to work short sales.  The majority of people in my area dont have any equity when they go into foreclosure.

I havent been spending hardley anything in marketing while working REO's and they are plentiful enough here not to worry about competition.

That being said, I am looking to get back into direct marketing, but changing the list to probate leads instead.

Steve Babiak · Answer

Here is the cold calling compilation:
http://www.biggerpockets.com/forums/87/topics/61286-scripts-for-calling-on-sellers

Dennis Marshall · Answer

You can go down to your county court house to the probate department if they have one specifically and ask for the latest probate leads. They should just hand them over to you.

I've also heard of investors finding probate leads in the newpapers. In Tampa, there's no such thing or I haven't found it yet.

Yea just get the decedents name and address then the beneficiaries (mainly the #1 benf) name and address and send them a personal letter. Be mindful that they have lost a relative or a friend so you want to be courteous but just state that you understand that there may be a home left behind that you would be willing to pay cash for.

Let them know the troubles of tryinig to sell a home the traditional way then tell the the positives of selling it to you.

I personally don't go after widows because they may still live in the house and have some sentimental attachment to it. you want people who live across the country and don't even know the home exists. When you tell them they can get 10k or 20k for just signing some papers, some, not all, will be blowing up your phone to get to the money. :mrgreen:

So where are you wholesaling at?

Danny Johnson · Answer

Jimmy,

Probate can be an awesome source for really great deals.  I bought 4 from a wholesaler in December 2009 that were all such great deals that I paid the wholesaler $8-10k each.

Very Important: Make sure you look at the age of the deceased (don't want to send letters to parents of deceased kids).  This was a warning in a course I studied several years ago and I always thought it worth remembering.

Jimmy C. · Answer

Thanks for the tips Danny and Dennis.   Now I have to actually put some money into direct mail again.

It sure would be better than hearing "highest and best" all the time.  Wish I was like Will here and didnt have these problems.

Plus REO's are not as easy to wholesale really.  Talking and negotiating with regular motivated sellers again would be refreshing!

Will Barnard · Answer

Almost all my deals are coming from REO's but many are negotiated prior to ever hitting the MLS. I can accomplish this only thru the relationships I have developed over the years.

Rudy Centeno · Answer

Dennis, 
Thank you for the great advice. My farm area is in California: Whittier, Santa Fe Springs and Montebello.

I have been sending letters to absentee owners but haven't had much success.

Can anyone share any techniques for cold calling that is working for them?

Rudy Centeno · Answer

Thank you all again for your replies. Great info. 
How do you go about getting a list of probates?

Danny Johnson · Answer

Rudy,

I have used flyers and doorhangers to blanket certain neighborhoods.  The results were horrible.  After several thousand, I only had 2 calls and both were worthless.  These were the right neighborhoods too.

I use doorhangers now only when driving for dollars and leaving them on the door of the vacant houses.

If you are knocking on doors, have a professional tri-fold brochure made up.  Include information about yourself and your company and, if you have them, testimonials from customers.  If you don't have testimonials, get referred by someone that people trust (your Pastor for example).  The brochure will project more professionalism and give you more credibility than a flyer.

J Scott · Answer

For REOs, we're generally purchasing at 70-75% of ARV after you add in the repair costs...

Finding Deals??

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