List source leads and questions

7 Replies

Originally posted by @William J Hyatt :

Building a list of leads on list source and wondering if properties/owners that have negative equity is a good list for direct mail?

Good to meet you..

Negative equity would be great for short sales. Minimal equity for Sub2 and 30% and greater for the typical prospect.

Originally posted by @William J Hyatt :

@Michael Quarles I’m just trying to understand, so the usual minimum negative equity to potential get a short sale and/or subject-to is 30%?

There are two types of Subject To strategies. 

1- Buy low equity 10-15% and resell via a wrap, rent to own, or keep as a rental.  These deals are plentiful however the exposure can be extreme  if the Due of Sale is called. At that point the investor will have to come to the table to cure the loan prior to foreclosure. 

2- Buy high equity properties 30%+ and outright sell the property. In this scenario you can use the above strategy however most wont. Most will sell the property and pocket the profit

In the second one mentioned above I prefer the wholetail method over wholesaling or assigning. 

Happy house hunting 

 

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