Success in Pre-Foreclosure Niche?

[Sean C.]

Hello BP,

I know in today's market pre-foreclosure niche is waaaay saturated (Bay Area Market). I've heard from a podcast somewhere that an owner in pre-foreclosure had over 30 letters from investors in ONE WEEK. 

I'm looking to expand my marketing (other than direct mail) and target this particular niche. I'm brainstorming creative ways to target this niche instead of DM to stand out.

Bottom line, my question is what is the process in a pre-foreclosure deal process as a wholesaler? Is there a hiccup in between I should watch out for or should be aware of? 

ps. I'm thinking of door knocking!

Thanks Bp,

[Jay Hinrichs]

@Ethan Summers  that was my entire point... desperation time is 72 hours or so before they are going to lose it.... 90% of the ones I bought were 48 hours .. that's when reality sets in.

sending letters within days of the initial NOD ( notice of default is what we call them here) your just one of hundreds.. so its just slinging mud on the wall) and with default a fraction of what they were 10 years ago... not as many fish in the barrel. so pretty tough if not impossible to wholesale these IE make finders fees in the normal sense of wholesaling.... by the time you get your e mail blast out buyer does a drive by or wants to inspect the property.. checks title etc. property is gone its sold or someone else beat you too it.. having contract with an owner won't cut it.. they will take the first dollars that comes there way in desperation time contract forget it about it... I did this often some wholesaler has it tied up can't perform they are just about to lose the house.. kick wholesaler to the curb and I close on it. And you can't blame the owner.. the wholesaler is just looking out for the wholesaler and does not really have the means to pull the trigger and solve the problem without someone elses cash.. IE why so many pre foreclosure laws went into effect.. Many Many people lost homes they should not of believing in the Empty pockets wholesaler BS pitch.

@Sean C.  this is a very easy answer.. how do you raise capital if you don't have it.. Well you do that by reputation and experience in the industry.. pretty tough for those that have no real estate track record to do this.. Mine was 20 years as a successful real estate broker and Mortgage banker with 1000 transactions under my belt.. I knew what I was doing and the investors know it.

At the end of the day west coast foreclosure buyers need a minimum of 5,000,000 if your going to make a business out of it.. and 10 mil is better.. and then lending facilities so that when you paid cash you could refi out or tag your credit line in the matter of days.. not a month or more for standard lending.