door knocked 30 houses/your advice, 2 cents, experience

9 Replies

Yesterday I door knocked preforclosures and didn't get the best results. I would say about 70-80% of the houses had their issue resolved. Good for them. The other houses no one was home and I left a vague letter asking them to call me. I have been using foreclosure.com for my leads and target the ones with equity. When I do get someone to answer the door I keep it simple and tell them, "Hello. My name is Cordell. I noticed there was an auction date scheduled for the house and came to see if you found a solution." I haven't had any bad responses yet and would go as far to say they have all been good considering why I'm knocking on their door. Although there was one gentleman that ignored me as he was about 3 ft away from me with only a window separating us. I also bring along a hand out with a foreclosure hotline on it with a list of options to pursue that has a basic explanation of each one. Ive been door knocking the houses with an auction date that has been 1-2 weeks away. There was about 4 houses that showed signs of getting ready to move out. Trash piled up as if they cleaned out the house. These houses I'm going to follow up with again. Im hitting up another 30 houses tomorrow on the other side of town. Oh and I've mailed these houses 2-5 times over the last couple of months already as well. Any advice in your door knocking adventures or horror/funny stories you want to share, share. Anyone know of a way to find out if the preforclosures already have taken care of their problem would help out a lot too. thanks. 

Cordell, I'm in Denver too! 

If they TRULY solved their issue, they would be withdrawn from their auction date.  Sometimes these dont update in a timely manner, but if they re-instated the loan, paid the past due, worked a loan mod to completion, bankruptcy, etc, it would get removed from the sale list.   I find 7 times out of 10 they say they are doing a loan mod, and act like that is 'taken care of', I push a little further with some actual numbers stating only a certain % of loan mods actually go through, and can I follow up with them to see how their loan mod is doing.  Loan mods are the worst false hope band aid I've encountered in the business.

I appreciate the 'hotline/brochure' approach to give them all of their options, but are you a foreclosure counselor working for free, or are you a real estate investor there with a specific solution to their problem?

Door knocking sucks, I talked about it in Podcast ep 96, if you need anything let me know.

Thanks for the advice. Im going to add that only a certain % of loan mods get approved and make sure to hand them my card when they say that. With the houses that do answer the door I don't hand them the print out with the list of options. I keep it to the point and short. I introduce my self and ask them if they found a solution to the auction date and shut up. I try to make it known that I want to buy there house. I did get a hefty number of houses that said they are doing a loan modification. And from the responses I received through emailing them on Facebook they all said they are doing a loan mod. So maybe a quick follow up letter should be sent out today. Thanks again for that gem. And the houses where no one is home or just don't answer is when I leave the brochure hand out with a vague hand written yellow letter and my info on it and business card. Im currently playing phone tag with a homeowner from yesterday so its excited to see something come from 83 miles of driving and door knocking. And I just started this, but I have been leaving the hand written letter and brochure in one of the postal envelops made for sending docs. Putting their info on it and leaning it on the door just like the mail carriers would. I started that bc I was worried about the invitation envelops I was wedging in the door getting blown away or just taken down from other "last one there" investor. 

The first few doors were gut wrenching/way too excited feelings. But then it was easier. I found it hard not to approach a door with a big smile as I probably started enjoying it too much. Ive turned to door knocking and cold calling a lot this month as Im not happy with the phone calls off of direct mail. 

And thanks for doing that pod cast. Ive listened to it 3 times already. Its one I listen to when I'm out in the truck door knocking. Im pretty competitive so it drove me from door knocking like 1-3 every now and then to doing 30 in a days trip. 

One odd questing is I've come across a lot of FHA loans and I've been told to just stay away from doing a sub-2 on those houses. But if I assume it with out it being my primary house and plan to flip/assign it ASAP do I need to worry about the lender coming after me for some type of damages?

Addionally, here in Colorado It it not very useful to door knock 1-2 weeks from the auction date. If you found someone who said yep let me sell you my house, you very likely would not be able to get the paperwork completed in time. There are exceptions to every thing but theoretically you need 2 weeks here in Colorado to give notice to the county. Under two weeks and the bank could simlpy not respond.

I would love to hear from others door knocking foreclosures.

Originally posted by @Tom Spaeth :

Addionally, here in Colorado It it not very useful to door knock 1-2 weeks from the auction date. If you found someone who said yep let me sell you my house, you very likely would not be able to get the paperwork completed in time. There are exceptions to every thing but theoretically you need 2 weeks here in Colorado to give notice to the county. Under two weeks and the bank could simlpy not respond.

I would love to hear from others door knocking foreclosures.

Depends if there is equity or not, if there is, you would just order the payoff from the foreclosing law firm and you never have to talk to the bank. 

 I've stopped foreclosures a week out for short sales too, its 100x more work, calling and pushing and triple checking everything and blasting them with the complete package and sometimes even a letter from the senator's office....  its brutal.

Tom that is really good advice. I might have been lucky with my first "almost deal". I took a contract with a  3rd party authorization letter to the bank and talked to them and explained what was going on. Then finally got the info to which law firm they were using. Took the contract to the law firm where they took copies and sent it somewhere to ask for an extension so I could close. I asked for an extra 30 days and explained I would close sooner than that but I was being cautious. The law office said I should know if they approve the extension within 10 minutes but we waited an hour. When I called in they said they needed to have the homeowner call in about it. Owner called in and said it was approved but he also was canceling my contract and selling to someone else. Im using the real estate contracts off of the state website that includes the colorado foreclosure protection act. We agreed on monday evening. Approved by mid Tuesday and he cancelled my contract within the 3 business days. Original auction date of that Wednesday. I'm new so I'm learning as I go. 

Thanks. Im glad to hear it happened to you too. Sorry it happened to you but I was devastated for that day and the owner ignored me. I got that deal to 60% of the ARV but Im finding that most cash deals are selling between 77-84% of ARV. With a few deals 50-60% of ARV. I Changed my goal to 75% of ARV or (10% of ARV+20K+Repairs)-ARV. What are you guys shooting for? After marketing the last three months without a deal I think I'm almost forced into wholesaling now. Thanks again for the posts guys.

And I also started Johnny Manziel yesterday in my playoff matchup. haha. I deserve to lose. 

OMG, why do you guys screw around with FORECLOSURES???  Worst seller segment - filled with people with no equity, no drive to solve their problems, etc. etc.

Watch this 10-minute video from Phil Pustejovsky - "Is Buying a Foreclosure a Good Idea?"

RUN, don't walk, from this prospect pool.  GO FIND PEOPLE WITH EQUITY.  If they don't have EQUITY, you don't have any opportunity for $$$.  Go to where the $$$ is!

@Account Closed  The county websites have all the foreclosure data you need. You can see who got an NED yesterday. That might give you a jump on all the others looking for the same people. 

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