A lot of homes that I have had an eye on on the internet, end up going "off market". What would be my best course of action to obtain the property at that point? Or is it even worth pursuing? Thanks!
@Patrick Jacques do some digging at your local assessor's office or online to see who owns the home. Is it a foreclosure, REO, tax sale, probate, or inherited home. Determine what is owed against the home if anything. Then make a decision if you want to pursue the home once you have these details. Good luck!
I started working foreclosure property in 1978. Besides more consumer protection laws, the basics for finding them hasn't changed. I'm referring to properties in default, prior to foreclosure sale.
There are plenty of defaulted mortgage data providers. Pull your data and scrub based on a set of criteria that you set in advance. Here's what I like:
Geographic - eliminate all areas that you do NOT want by city or zip or other method
Land - eliminate all vacant parcels
Property type - eliminate commercial, industrial, office and similar properties
Product - eliminate over 4 bedroom, before 1950 or after 2009
Equity - eliminate all with less than 50% LTV
Your criteria will most likely be very different so no arguments about what I want vs what you want.
Now that you've determined what you want, and have a manageable list, create a mailing campaign. I suggest letters over postcards because it's more private and appears less commercial.
Presuming you understand your target states's foreclosure timeline, create a mail campaign that involves multiple letters to each record name in your database. Think of it as paralleling the debt collector program; persistent multiple mailing. In mine, I've used a different USP and 'theme' to appeal to the owner's situation, always being sensitive to their situation and treating them with respect.
Using this approach, I've bought and profited from many, many property deals. Mind you, property owners will receive hundreds of mail pieces from others offering to "help" many or most of which are crappy and look cheap. When your letter looks clean, professional and has a straight-forward message sent multiple times, you will stand out and you will get calls.
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