Creative ways of finding short sale leads?

Question

Any creative ideas on   finding good short sale opps?   Has anyone had luck staying in touch with short sale negotiators or attorneys to get  a jump on any new deals or some that fall through with the initial buyer?

What are you doing to get good short sale deal flow outside of fighting for them on the MLS? It's getting old getting into bidding wars on everything I try to get through normal  channels.

Account Closed · Answer

Hi Ned.  Well for me short sales have worked out so far and are a primary means of finding deals in Florida.  I live out of state and try to find newer homes that will be easier for me to manage flipping when I am not present for the rehab.   The market is super competitive and there are very few deals as it is.  On the upside if you get one you are pretty much guaranteed a decent profit and a quick flip.    So just trying to see how others are gaining an edge with distressed houses in a hot market.

Michael Quarles · Answer

IMHO Shorts are easy to find... And easy to get a contract on.

I have found that the 60-119 Mortgage Late list is by far the best however the NOD list has worked wonders too when utilizing direct mail.

The key is start doing something and continue.  And if it is a budget issue then network market like crazy. Wear a polo shirt that says "I Buy Houses in Foreclosure" everywhere, even church...

Network with refi lenders for their turn downs.  Start going to the Short  Sale workshops Realtors put on as a distressed Home Owner and network. Maybe put a flyer on each of the car windshields in the parking lot.

Do something..

Account Closed · Answer

The reason people are saying it's not that hard to find a short sale deals is because it's not.   My guess is that you are expecting the MLS to provide you with deals.  I suggest you stop saying there are no deals and I suggest you step away from the MLS.  There's a whole other world out there.

Much of FL and CA are very similar.  Multiple offers on a lot of stuff, very few straight sales and REOs priced at near retail.  Under $50K is hot where I am.  I said that 50% of props in my farm seem like short sale "leads".  I called them leads because they are upside down, not because you can call an agent and make an offer.  Only a fraction of upside owners are listing their props as short sales.  Most upside down props aren't listed and the owners aren't actively trying to sell.  Some are walking, some are working on loan mods, some are filing BK.  Some are doing nothing as some banks aren't foreclosing on defaulted borrowers right now. Think about going directly to sellers.  Advertise or direct market to upside down owners.  Short sales are tedious.  They take time.  A lot of time.  Many will fall through.  Some are difficult/impossible to wholesale because of deed restrictions.  But buyer who are negotiating and waiting out short sales in my farm are getting some of the best deals, IMO.  The houses are usually occupied up until closing and are in good condition.

Now if you live in an area where no one's upside down, that's a different story.

Happy hunting.

Account Closed · Answer

Michael Quarles  I chuckled when I read the title of this thread. In our farm it seems that 50% of all props are short sale "leads".  But I laughed out loud at your comment "do something".  Such good advice.  So many people in so many markets are upside down.  A percentage of them want out through a short sale because they think that's more honorable than walking.  I don't market to preforeclosures and I still get a fair amount of upside down owners calling. I have limited stomach for banks.  Can I refer the callers interested in short selling to you?

Account Closed · Answer

Hey Bill.  These are some really unique ideas.  Thanks a million for posting them.   Good luck and good night to you too man.

Steve, would definitely be interested in speaking with you down the line.

Bill Gulley · Answer

You could go the vulture route and follow up on bankruptcies, while many are already in trouble some don't find out they are upside down until they file.

Contact non-profit financial counselors, people contact them for help, leave cards there and make friends.

I knew a vulture Realtor that followed court convictions, some are homeowners get sent up the river to the big house, the bread winner is gone and they are forced to sell. With values down, they could be short sales.

You could be a storm chaser, damaged homes that don't get sufficient insurance proceeds can easily be under water...so to speak.

Factory closings or employors closing, put a flyer on the company bulletin board. People may be moving away.

Look for contractors going bust, an unfinished home is always under water compared to market values.

A short sale is when the lender accepts less on a payoff.....so what do note holders do when they want to sell the note? Contact the buyer and see if they will sell in connection with a note sale......it's the same thing....kinda!

Good luck and good night....

Steve K · Answer

Mike - I don't have anything teed up at the moment but will drop you a line for future items.

Account Closed · Answer

Steve, if you have some leads in Orlando I would be happy to do deals with you.  I have not looked there at all.    I have been buying new houses (under 10 years old) around 80-100k that need minor cosmetic work.  That might be low for the Orlando area?  I can go higher if needed but I want to see around $20k profit if I do.

Steve K · Answer

Hard to imagine that deals are that hard to find via short sale.  I see tons of vacant houses driving around and often times they'll stay that way for a number of years.

What price ranges are you looking at in sfla?

Monica Breckenridge · Answer

Hey Mike,

Short Sales is my specialty.  There are many different ways to find short sale leads.  For me I find the best is through marketing Avoid Foreclosure.  Here are some options for paid marketing:
1.  Bandit signs
2.  Mailing the foreclosure list (I use Renav.com for finding my distressed leads in Colorado.  Use the discount code PINK)  You can find people in foreclosure by searching for the list in your county.  I live in El Paso County Colorado Springs so my website to find the foreclosure leads is www.Elpasopublictrustee.com.  The list is usually free.
3.  Website- you should have a website to generate leads geared for short sales

Free Marketing:
1.  Doorknocking the foreclosure list
2.  Finding realtors who don't like short sales to bring you leads
3.  Blogging on short sales
4.  Posting U tube video's and making a u tube education channel in your area as the go to short sale specialist