Approaching a seller for a cash deal

Buying & Selling Real Estate
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Approaching a seller for a cash deal

Don Petrash
Investor · San Angelo, TX · Member since 2015 · 26 posts · 10 votes

Big Picture: Looking for the right approach to a distressed seller.  Lots of job losses and foreclosures coming in my market.  

This is what I put in several "white letters."  What do you think?  How can I give a better "value proposition" to a distressed seller?  

Mr. and Mrs. ____,

My name is Don Petrash, and I am in real estate. It looks like your house has been listed in foreclosure.

First, I understand this is a difficult time. You have to make the best decisions for yourself and your family.

If you are interesting in selling, I can offer to buy the property.

For more information, please contact me at the info below.

Sincerely,

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    I don't have a winning formula. I've tried approaching a couple different people in the midst of foreclosure and they rejected my attempts to help. One guy foreclosed owing about $320,000 but his home could have easily sold fast for $100,000 over that. He rejected my offer to help and went to foreclosure.

    I would do some research to see what a successful message looks like. Personally, I think they want to remain anonymous so nobody knows and they want to walk away from their problem.  How do you convey to them that you can keep it discreet and provide them with a solution? In other words, maybe selling the home isn't the solution (in their mind). Maybe they are only concerned about enough money to move to Georgia or bailing their 19-year-old daughter out of jail.

    Just a thought from someone with no success in this area.

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  • Don Petrash
    OP
    Investor · San Angelo, TX · Member since 2015 · 26 posts · 10 votes
    6y

    Nathan - thanks for reading!  I agree, much of the issue is the desire for anonymity and mistrust of anyone with an offer that sounds "too good to be true."

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  • Joe Cassandra
    Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
    6y

    Hey Don, 

    I've started sending letters the past few months. 

    I wouldn't hit them on the nose with mentioning "foreclosure." 

    Most sellers: 

    1) Take offense to people knowing their business

    2) Think they have more privacy than they think...

    You'll find sellers who try to hide what they owe on their mortgage...when a simple Propstream search can bring it up in 3 minutes. 

    I like 'twisting the knife' as they say in copywriter...

    But be less direct. "If you have a need to access cash from your house...maybe you owe the IRS taxes, have gone through bankruptcy, or behind on your mortgage payments...I could buy your house in the next 30 days to get you that money. 

    If you're interested in hearing an offer...etc." 

    To be honest, I've been pretty generic on my letters, "I'm interested in buying your house" as that's what everyone recommends...but, being in marketing, I think going more direct at their pain helps. 

    Although, many who send regular DM would disagree. 

    But I wouldn't directly tell them you know they're going through foreclosure. They'll feel like you're spying on them.

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