Door Knocking Today - Results

Door Knocking Today - Results

Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes

Hello All - I spent the day door knocking on pre-forclosures and thought I'd share my results. 

I knocked on 12 doors, talked to 4 owners + 1 Facebook lead. Drove about 110 miles and actually had quite a bit of fun. I left hand written notes on every door/mail-box that didn't answer. Here are some detailed results.  

1. First door knock by myself ever. Nice lady answered the door. Ended up talking for 20 minutes. Her husband has had 4 back surgeries in a row and hasn't been able to work. She was laid off after 20 years in corporate job. She just found another job. She has two kids. One is 14 and the other is under 5. She THANKED ME for knocking on her door! She was very open and said she definitely wants to sell and move. She has already filed bankruptcy and she owes 95k on 1st mortage and 25k on 2nd. ARV aproximately 175k (Zillow - I'll run detailed MLS comps tonight). I left my name and #. She's going to talk to her husband and call me. I asked if it would be okay if I called her in a week if I haven't heard from her by then. She said yes and asked me to be sure to do so.

* I have no idea what to do next! Let's say she talks to her husband and they call me. After I get in the house and do a scope of work/rehab estimate and calculate my magic number, how would I go about making an offer and navigating the deal here? Do I call the banks with them and try to make arrangements? Is the bankruptcy a deal-breaker? Does a closing attorney/title company arrange the deal if we agree on terms? 

2. 2nd Door - Lady answers. Says her Son and Daughter-In Law are owners and won't be home until 5:30 - 6pm. Says they would likely want to talk to me. I circled back at the end of the day and nobody was home. Left hand-written note. 

3. 3rd Door - No answer. Neighbor across the street is out doing yard work. I introduce myself and ask if they know about the house across the street. Neighbor tells me house is empty. Mr. Homeowner passed away and Mrs. Homeowner moved to Kansas. Neighbor says she and other neighbors have been watching to see what happens with the house. I ask if she knows how to get in touch w/ Mrs. Homeowner. She says they are facebook friends. I tell her why I'm there and if she'd be willing to pass my name and # along to Mrs. Homeowner to see if she'd like to discuss preventing the foreclosure. She glady agrees and takes my name and info. I then found Mrs. Homeowner on facebook myself and sent her a PM voice message. (Too much?)

4. No answer - Left Note

5. Man openned door. Told me they just entered an "agreement" and couldn't sell even if they wanted to. He had no interest in taking my info and I didn't push it. 

6. No answer - Left Note

7. No answer - Left Note

8. Pulled up and male was sitting on porch. Homeowner came outside. Introduced myself. Built rapport and explained why I was there. He says he definitely wants to sell. Owes 60K on home. Inherited from parents when they passed away in 2015. Tells me a contractor friend of his is already trying to buy the house but nothing is final. Wants to talk to me more tomorrow. I agreed to call him at noon tomorrow. Then... he asks me if I know of any land for sale in an adjacent county. I tell him I don't but asked if he is familiar with the MLS website to search. He wasn't. I showed him the MLS site on my phone and gave him the web address. He acted like I had just shown him some big secret and made his day. He said "man... I'm gonna sell my house to you. thank you for this". I thanked him and agreed to call him tomorrow. We traded #'s. ARV on house per Zillow is aproximately 210k.

9, 10, 11, and 12. All no answer with notes left. 

In summary - This is definitely not efficient. However, I can definitely see how and why it can work to generate leads on deals. Any suggestions/feedback for me? Thanks everyone!

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Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
7y

@Jason Krawitz -  this is awesome! I used to door knock back in the day and so many people are afraid of it. I'm happy to try to respond to your questions:

1. To me, every home not in foreclosure is a "pre-foreclosure". So I'm assuming these homes are in foreclosure. You need to find out the payoff because they likely owe more than $120k. Let's say it's $130k. If it's worth $175k, you can figure out your next move. The good news is that you're an agent so if it doesn't work as an investment for you, you can list and earn a commission. I'd put it at $165k (quick sale) and you'd still have $20k+ for the owners. Everyone's happy. Than again, the ARV might be $185k and it needs minimal work and you can do a small flip or maybe BRRRR.

3. No, not too much. Just right.

5. Did you ask him about the "agreement" and what it entailed?

8. Did you ask him how much his friend offered? You have a lot of room so find out and if it's not crazy, beat it. The reason you ask is because you don't want to walk in and offer $120k if he friend was offering $90k. 

I disagree with your final assessment. How often do you get 2 good leads and 2 lukewarm contacts in one day? One suggestion is that you handwrite a generic note and make copies - put those on the doors that no one answers. Writing a note each time is time-consuming. Nice work!

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  • Asheville, NC · Member since 2017 · 170 posts · 242 votes
    7y

    @Jason Krawitz

    Sounds like a great day!!! And it sounds like you have great people skills. A true advantage!

    My only $.02 - on first lead, she may not be able to sell if she’s still in bankruptcy proceedings.

    This strategy works for me. Keep on it.

  • Real Estate Broker · Bakersfield, CA · Member since 2018 · 269 posts · 597 votes
    7y
    Originally posted by @Lauren B.:

    @Jeff Cagle

    I got the impression that the investor purchased the 1st note, (“took control”) , screwed the seller and second lien holder by convincing the seller to sell sub-2, then intentionally defaulting and foreclosing to eliminate 2nd.

    Except that this foreclosure of the first would necessitate a public sale at which the bidding for a $500k house needing virtually no repairs would go much higher than $300k. A first lienholder can't simply surreptitiously foreclose and take a property back in order to prevent junior lienholders from having a chance recoup their equity. I would bet my big toe that this is a concocted tale designed to wow the listener with the creativity of the teller.

  • Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes
    7y
  • Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes
    7y
    Thanks @Aria Drexler: I don't have a script and I'm absolutely not an expert. I am wholey unqualified to tell anyone how to do this. But.. I just knock on the door, step back about 15 feet, and if they answer, I introduce myself, tell them I knocked on their door because I'm looking to buy a house in the area and ask if they would consider selling. I'm not very consistent. Sometimes I would say something to the effect of "i noticed this address on *a list* and wondered if they had any interest in selling their house to resolve the situation."

    I really don't know. I just talk to them, smile, listen if they are willing to talk, and empathize. I really don't want to sound too cheesy but I put my brain in the mode of "can i help this person out of a situation I know they don't want to be in?" I stumbled on my words several times to be honest. 
  • Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes
    7y

    Maybe I'll make this a weekly routine and see what happens! I need to learn more and get comfortable and confident getting to the offer discussion and see what kind of responses I get. To do that, I need to keep practicing my scope of work/rehab cost estimates and make sure I'm in the ballpark. I'll keep practicing! Thanks. 

  • Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes
    7y
  • Property Manager · Jacksonville, FL · Member since 2018 · 514 posts · 470 votes
    7y

    @Jason Krawitz Yes, definitely makes sense and I agree with that approach. If you go out looking for flips and find a BRRR or wholesale opportunity instead, you can't pass that up. Very smart. Keep us posted in your progress! It's very cool what you're doing.

  • Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
    7y

    Good for you @Jason Krawitz!

    I love that you have no clue what to do next but went out and took action!!!

    If someone comes back, you walk it, come up with rehab budget and its a deal and all that good stuff.... BE HONEST. Tell them your intention, "Look I can sell for this amount, house needs this much work, im in business to make money so I do look to make a FAIR profit (most motivated ppl dont care and/or are understanding). I can offer x amount for your house".

    Articulate it better, but those are the main points. Be confident in your rehab numbers too, they will almost certainly disagree. You'll get a lot of "3k for a bathroom!? I can put a new bathroom in for $500".... or "there's nothing wrong with that bathroom".

    Good luck!

  • Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes
    7y

    Update!

    Two walk-through / follow up conversations scheduled for Monday on doors # 1 and 8!

  • Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes
    7y

    Update! 

    I've continued knocking on doors each week since this original post. Many of the doors I knocked on the first week are nearing their foreclosure auction dates. About a week or so ago, I made an offer on door # 1 from this post. No response. On Tuesday evening of this week, I received 2 calls and 2 texts from owner of door # 1. Long story short, they were ready to sell because their auction date was Monday 3/26. While they were ready to sell, they wanted to negotiate. I was willing to pay more than my initial offer. However, because I didn't do a good enough job prior to this point, I didn't have enough information to feel comfortable and confident proceeding. My initial offer was $106k. I had 3 exit strategies and all were winners. Yesterday, they texted me and said they had an offer from another investor for $115k and asked if I would counter-offer. I would/should have countered and paid up to $119k but didn't get clear enough information on exactly what they owed (from the banks vs. just from their guestimates) before this point. They sold (or at least entered contract) to the other investor while I was still asking questions. Next time, when I'm sitting in their living room for 2 hours, I'll do a better job of getting ALL of the information I need to act quickly and decisively. 

    On another property from my original post (don't recall which door # it was), I had an appointment to walk-through the house and was stood up. The following Sunday, I was contacted by a wholesaler asking if I as interested in that same property. He had it under contract!!!!! I immediately called the owner who answered and asked what I could have done differently to have convinced him to work with me. He said it was 100% timing and had nothing to do with what I did/didn't do. 

    It hurts knowing I just let my first potential deal(s) slip through my fingers but it's also encouraging to know I'm barking up the right trees. Thanks again for all the encouragement! Best of luck to all of you. 

  • Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes
    6y

    Update - 

    It's been while but I wanted to post updated results. I landed my first deal in May 2019 from door knocking. It was a pre-foreclosure. I bought it subject 2 (wasn't even trying to buy sub-2 but that's just how God works) and flipped it and made a net profit of $56K. Part beginners luck but mostly, in my opinion, a blessing from God. I'm still in contact with the sellers to this day. Since then, I've continued door knocking while also acquiring deals from wholesalers and relationships built at my local REIA and a Bill Cook/Pete Fortunato "What Box" seminar in Atlanta.

    Between cold calling, Wholesalers, MLS, Relationships, and all the available ways to acquire leads and properties, I still prefer door knocking. In many ways, It's terribly inefficient. However, there is no substitute for face to face human conversation and interaction. Even during COVID-19, it works. I knocked on 7 doors this past Thursday. These were VERY targeted doors with high-equity and other indicators of being strong possibilities. From those 7 doors, I talked to 3 people face to face, received a text message from 1, and a phone call from another in response to my hand written notes left in their front door. I don't expect that I'll buy any of those 7 homes. However, compared to mailers/cold calls/etc, the response rate and contact rate can't be beat.

    Door knocking is fun. I enjoy talking with folks, have learned of off-market opportunities in the neighborhood that I wasn't targeting, and 100% believe in it as a method to get into the game. It's time consuming but worth it!

    Good luck!

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    Well, being good on the phone is the absolute most efficient way to cover ground.

    However, showing up in person is the best and sounds like you got 3 out of 12 being close which is a helluva batting average for cold contacts.

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