Preforeclosure

11 Replies

Hi everybody,

I have purchased a list from Listsource for preforeclosures in my city. Does anyone have any experience talking to the homeowners? I will be going by their houses to talk to them personally. I want to be direct but I don't want to be offensive since they are going through a tough time. 

Also, does anyone have a follow up process for trying to contact the homeowners I don't get in touch with?

Thank you in advance for any ideas,

Eric

Hi Eric, 

Any luck with this strategy? I am considering a similar approach! 

Breeona 

HI 

where can i find and buy those lists if you would 

thanks a lot 

Ehab T

Hey Eric,  I've been looking at doing the same thing you described here.  I am looking for a more consistent deal pipeline and pre-foreclosures has piqued my interest. Any advice from your experience thus far would be greatly appreciated.  

Thanks!

I would recommend a professional letter stating who you are and your objectives and see how that works if you meet with them you're going to hear a sob story and they're going to try to get personal with you and it becomes difficult we have done over 1000 Forclosures and this seems to work OK. It takes a little bit more time but people in this tough situation usually work better with you when they see that you're compassionate and trying to help them

Hey how is the strategy working for the ppl trying it and are their any videos on here about the dialogue when approaching these foreclosures and how much to offer on the property based on their percentage of equity in the property?...

What I would recommend is to approach them personally, but not to let on that you're aware of their situation. Let them know you're looking to buy houses in that area and ask if they know anyone who might be looking to sell or if they are looking to sell. That keeps their guard down and tickles their "a way out of this mess" button without seeming to pry or be predatory.

My $0.02 ...

@Eric Smith @Breeona W. @Ehab Tadrous @HEMANTH GRANDHIGE @Anmmar Alsaggaf @Paulette Hewitt

 My letter made me a Million Dollars. 

I Titled it "7 ways To Avoid Foreclosure" with me buying the property as option 3 so I didn't look too self serving. I used legal size double window envelopes at $50 per 500 and had the message show through in the top window. I sorted the database for the zips I wanted and I mail merged the names and addresses. 

The letter was one side of one page printed on 24# paper printed and tri-folded at Staples so the address showed out the window when inserted. I mailed on mondays so they got it on wednesday or thursday so it didn't compete with the thick monday's mail. I put a 1st class stamp on the envelope. I sent out about 500 every week. Yep. It cost me about $1 per mailer. So, I spent about $500 per week advertising. My wife and I would watch "Flip this House" while we stuffed and sealed and stamped. I was one of the highest users of services at Staples and I have a platinum discount. I had my cell phone number on the insert and picked up the phone every time it range regardless if it was 7:00am or 10:00pm

I would ask "which item number do you have an interest in?" and direct them in that solution. Obviously, if they said #3 I would schedule a meeting at the house with all owners of title present.

If they said any other item number, I would advise them of those options as best as suited their situation and I would tell them that if they needed help, let me know or if they decided to sell, give me a call. I treated them fairly and with respect and I made a million, literally.

Sometimes I was able to help them keep their house without costing them a dime. Sometimes I would get a call back a year later from them wanting to sell their house to me. I got lots of business. But always, I was respectful of them and of a tough situation, offering honest solutions and we both benefited.

I now do "Subject To" instead, with Joint Investors, because it is far less risky, it is more profitable, less work and a much faster way to wealth with a $25,000 investment instead of the $200,000 and $300,000 I had to use in the market I was in.

If you choose to do Foreclosures, my method works great, but find out if it is even still legal since the changes of 2011, and 2016. In some locations, it will now get you a visit from the AG's office. Make SURE it is okay in your jurisdiction. 

If it isn't okay and you want to move onto less risky "Subject To" and make some real  money, email me. My profile has my email address. 

Ken

Updated 10 months ago

My letter made me a Million Dollars.

Maybe investigate the neighborhood beforehand. See how things look in general.

@Zachary Bamberger

Indeed.... Use maps. Google, Bing, etc. (if it's shown?) and also look at comps on Zillow, etc. as well as rents on RentoMeter. THEN 'drive by,' if it feasible and worth the time and effort.

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