Investor · Yucaipa, CA · Member since 2011 · 162 posts · 232 votes
I just learned how to retrieve the data at the hall of records. I have learned the basics of it and now that I am able to develop an NOD list, what are some strategies that can land me a deal once I have the address of the NOD. Obviously I know about mailers, call them, door knocking and all. Even though i know about ways to reach your target market I have never actually done it, and i know the devil is in the details. So what I'm searching for is an investor who uses these NOD lists on a regular basis, and if its a good way to land some deals. Any advice on the subject would be appreciated. Thanks for your time.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
14y
Great question.
NODs have a great motivation to sell. Some are still in a state of denial. However some are extremely motivated to sell. The big problem is that the list is easy to obtain and you’ll have a ton of competition for the prospects attention. Which is why I like the 90 mortgage late list.
Side note make certain you follow the California Foreclosure notification laws to the seller or the seller can unwind the deal and there is criminal penalties attached for not doing so. BTW the law is easy to follow so you should be fine.
Back to NODs; there are various strategies out there as too which type of motivated NOD seller you should prospect to.
I think there are 3 main types.
1) Highly over leveraged
2) Leveraged at 90-105% of Value
3) Equity NODs
Category 1 requires the ability to negotiate short sales. Which frankly is not that difficult once you get your feet wet on a couple.
Category 2 requires no negotiation with the lender however this is a buy and hold candidate which you'll be buying as a sub2, land contract or option. Hopefully not the option and reselling as a wrap, CFD or option. Maybe a seller second or sub2 completely.
Category 3 is the arena I think is worth playing in and is exciting... These are sub2 sellers which can either be flipped for instant gain or sold with a wrap... Both looks good from a bottom line standpoint and last month in California 1177 NODS had considerable equity, more than 25%, and they were in an area with a population base of 60k or better.
I like high population because it tends to translates in to a faster resell.
As for what to use to attract them... Whatever you can do to strike up the conversation to the opportunity. Naturally I like Yellow Letter Mail...
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
14y
Great question.
NODs have a great motivation to sell. Some are still in a state of denial. However some are extremely motivated to sell. The big problem is that the list is easy to obtain and you’ll have a ton of competition for the prospects attention. Which is why I like the 90 mortgage late list.
Side note make certain you follow the California Foreclosure notification laws to the seller or the seller can unwind the deal and there is criminal penalties attached for not doing so. BTW the law is easy to follow so you should be fine.
Back to NODs; there are various strategies out there as too which type of motivated NOD seller you should prospect to.
I think there are 3 main types.
1) Highly over leveraged
2) Leveraged at 90-105% of Value
3) Equity NODs
Category 1 requires the ability to negotiate short sales. Which frankly is not that difficult once you get your feet wet on a couple.
Category 2 requires no negotiation with the lender however this is a buy and hold candidate which you'll be buying as a sub2, land contract or option. Hopefully not the option and reselling as a wrap, CFD or option. Maybe a seller second or sub2 completely.
Category 3 is the arena I think is worth playing in and is exciting... These are sub2 sellers which can either be flipped for instant gain or sold with a wrap... Both looks good from a bottom line standpoint and last month in California 1177 NODS had considerable equity, more than 25%, and they were in an area with a population base of 60k or better.
I like high population because it tends to translates in to a faster resell.
As for what to use to attract them... Whatever you can do to strike up the conversation to the opportunity. Naturally I like Yellow Letter Mail...
Austin, TX · Member since 2012 · 17 posts · 4 votes
13y
@Michael- I have some sub2 props in Texas but have an opportunity and looking for more in Cali. Where do you get 90 day mortgage late lists?
Thank you so much!
Jennifer
Wholesaler · Memphis, TN · Member since 2011 · 34 posts · 6 votes
12y
John Thedford, an NOD is a notice of default on a mortgage therefore causing a foreclosure to start.This notice is public record and is normally sent I believe after being 90 days late on a mortgage. But I think that varies by state.
Quick question, but what strategy do you use to market to NOD/90 Day Late Sellers?
Do you use the traditional yellow letter approach, "Hi I am Robert and I want to buy your house for cash?" Or do you have another strategy to market to these leads?