How do YOU find leads?

Question

Hey guys,

Got a few questions for the experienced.  I'm curious as to how you guys obtain leads for short sales.  Do you send out mailers to those that have a default recorded, sale date, etc.  Or do you acquire connections with realtors?  If you go the realtor route how do you approach and exactly how does that process work?  Just looking for some suggestions to help get me kick started with a short sale...

Thanks for the help,
Brett

James Ward · Answer

I agree with what has been stated above, it is always BEST to market directly to the property owners.

Andrew R · Answer

Personally I would get a pre-nod list (60 day lates before the NOD) and market to them so you have more time to get them & more time with the short sale negotiation etc.

Another thing would be to go the courthouse and pick up freshly recorded NOD's. and then market from there with postcards,handwritten letters etc.

Michael Quarles · Answer

I was doing a horrible job at saying you should use the 60-90 list in Texas because of the short publish period... Thank you for clearing that up..

Michael Quarles · Answer

I think the key to a successful short sale is controlling the communication with the seller and the lender... Hard to do if you're using an agent... a lot of agents are good at selling houses however few are versed at short sales..

Depending on your state the 60-90 day late list may be your best bet... Out here in California we have a 111 day pre-foreclosure period that must be published so a NOD list works good here. But if you're in Texas the publish time is 21 days...

As far has how to find them that takes some marketing... If you're budget is small or non existent then your COI center of Influence group is going to be valuable. This may even force you back to an agent. The problem with using an agent is their interpretation of their fiduciary responsibility and whether they will allow you to remarket the property for a greater sum then what you're buying it for and they are negotiating with the lender at.

Short sales are a big topic however only one of two prospects groups that seem to make sense nowadays..

Happy house hunting.

Michael

Caleb Whitney · Answer

You pretty much want to be hands off when it comes to dealing with the homeowner if working with Realtors.  The Realtor works with the homeowner to get the short sale package compiled and then back to you.

Clifton Jones · Answer

Brett, your best bet when dealing with realtors is to meet quite a few of them and just be honest with them.  State that you are an investor who is interested in working with them on purchasing properties.

We work with realtors in our business.  One of our requirements when working with the realtor that we state right up front is that we handle the negotiations.  We will not allow somebody else to handle the negotiations on our deals, for the most part, because most of the negotiators are not conversant with how to negotiate the deals we submit.

As an investor, you submit offers that are significantly lower the fair market value.  Due to this, you would also submit reasons justifying the offer, such as repair lists, crime rate, sexual offender lists, police reports, anything that can cause the lender to accept your offer.  Do you think that the typical negotiator, who is usually a title agency or the realtor themselves, would understand or even think it was worth it to submit your offer?

If the realtor is comfortable with this, then that is a realtor that is a potential candidate for your team.  That does not mean that you should work with them.  Once you have established that they accept the requirements you have (not necessarily the negotiation issue, but all issues), then you need to ask them about the properties they closed in the last year, 9 months, 6 months, month, etc.  Establish whether they are go-getters, or if they wait for deals to come to them.

If they wait for the deals, then I would not want them on my team.  I want active go-getters, somebody who actively markets properties, hold open houses, etc.  Those are the realtors you want to work with.

Brett Sodders · Answer

I've sent out around 100 letters over the past week via a pre-foreclosure list (foreclosure radar)...  Haven't had any responses yet.  I'm going to continue this approach, but I just wanted some other ideas.  I have drafted a mailer to send to attorneys that I'm going to start this week.  I want to also contact realtors, but I don't know how to approach them.  Does anyone have any examples and does anyone have a sample letter they are sending to these contacts?

Thanks 
Brett

Maryann L. · Answer

Preforeclosure lists
Bankruptcy Lists
Divorce Lawyers
Bankruptcy lawyers
Probate lawyers
Probate lists
Realtors
Craigslist
Bandit signs

There are practically too many to list

How do YOU find leads?

Most Popular Reply