Door knocking Pre-forclosures -

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Door knocking Pre-forclosures -

Mark Graziano
Investor · Acworth, GA · Member since 2015 · 95 posts · 23 votes

Hello BPer's,

I have been door knocking pre-forclosures for a few months now with little success.  I have been able to speak with a few residents, but only one homeowner who was not interested in selling.

My approach is normally to act stupid, like I don't know the house is in foreclosure and proceed with, " I am sorry to bother you but my Realtor said that this house might be for sale.  I didn't see a for sale sign so I was wondering if I was at the right house?

If I do not make contact with the homeowner I will always leave a business card, letter or postcard. The single contact I have had with an actual owner was from a business card.

I was wondering what your experience was with door knocking pre-forclosures?  How many homes do you visit before you get someone interested.  How often do you get in front of the homeowner?  How often are you able to close a deal.

This is a very time consuming practice and really  I need to maximize my efforts as time is limited.

Any critiques would be greatly appreciated,  and if you have a specific technique

( MLS, Auctions, direct mail) that you notice closes the more homes I would appreciate the feedback as well.

Atlanta Market OTP

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Jessie Bienvenu
Investor · Helotes, TX · Member since 2015 · 27 posts · 13 votes
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Mark,

I would not beat around the bush about why you are there. I would learn about the options someone in that situation has, and how each option impacts them. If they have gotten that far downstream they are probably staring down the foreclosure cliff. I would develop the netwrok to help them cash buyers, other investors that would be interested in a Sub2 and the like.

I would tell them why you are there, "... you are headed to foreclosure I work with homeowners in your situation....are you interested in selling your home?".  Be courteous, informed, and you need to be truly interested in helping them with their situation.  That way you don't waste yours or there time, or muck up a realtor's name.  

It's not an accident your at their doorstep.  You are there to solve a problem and conduct a transaction.  I would present myself as very capable of accomplishing this.

When are you doing this? Afternoons and weekends will net you the most contact.  I particularly find weekday afternoons to be the best.

Do you know you if you are targeting the best prospects?  Make sure to spend this time, because it is time and fuel consuming, on prospects with at least 30% equity in their home. That is my two cents, and what has worked for me.

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  • Jessie Bienvenu
    Investor · Helotes, TX · Member since 2015 · 27 posts · 13 votes
    11y

    Mark,

    I would not beat around the bush about why you are there. I would learn about the options someone in that situation has, and how each option impacts them. If they have gotten that far downstream they are probably staring down the foreclosure cliff. I would develop the netwrok to help them cash buyers, other investors that would be interested in a Sub2 and the like.

    I would tell them why you are there, "... you are headed to foreclosure I work with homeowners in your situation....are you interested in selling your home?".  Be courteous, informed, and you need to be truly interested in helping them with their situation.  That way you don't waste yours or there time, or muck up a realtor's name.  

    It's not an accident your at their doorstep.  You are there to solve a problem and conduct a transaction.  I would present myself as very capable of accomplishing this.

    When are you doing this? Afternoons and weekends will net you the most contact.  I particularly find weekday afternoons to be the best.

    Do you know you if you are targeting the best prospects?  Make sure to spend this time, because it is time and fuel consuming, on prospects with at least 30% equity in their home. That is my two cents, and what has worked for me.

    6Reply
  • Mark Graziano
    OP
    Investor · Acworth, GA · Member since 2015 · 95 posts · 23 votes
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    @Jessie Bienvenu Thanks for your input Jessie

    I do my door knocking from 5 - 7pm Tuesdays, Wednesday and the occasional Thursday.  I find this give me enough time to get to around 4-6 homes after work.  I only visit those who are in my target markets and target price ranges with adequate years of ownership to have build up some equity in the home.  So far I have been well received by those that I have spoke with.  Unfortunately,  i just haven't had any real strong leads from it.

    The opening line that I mentioned in the prior post was given to me by an investor in my area who has been in the business for 30+ years.  It is his impression and experience that 

    1. People are eager to help other people if they see that you might need help (i.e. being lost) and may open up into telling you their situation.  I had this happen last night with a lady that was going though depression and her husbands business was going down the toilet. 

    2.  People get confrontational if you bring up their house being in foreclosure to early  in the process.  It is his experience that most people don't want to leave and they feel like the house is being taken from them.

    What do you use for your knocking?  Do you find 1 and 2 to be true?  Do you have a standard opening line?

    If something works great for you I will definitely try it, I am ears, well eyes.

    Thank You

    2Reply
  • Genna Andersen
    Layton, UT · Member since 2015 · 2 posts · 7 votes
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    Hey Mark, you might want to try calling, I think it is easier to do all the conversation over the phone, plus it is so much faster!! I get all my information from Inquiso.com, it is an awesome website that tells you all the information on a home you are interested in including the phone number of the resident. Hope this helps! Good luck!

    6Reply
  • Jessie Bienvenu
    Investor · Helotes, TX · Member since 2015 · 27 posts · 13 votes
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    @Mark Graziano

    It is going to be a lot of No's thats for sure. But, in my experience what you are looking for is a motivated seller.  That's the guy/gal who asked "Do you want to sell your home?" Replies "Yes, ....." So getting to that answer is your first way point in this equation.  

    Did that lady from last night want to sell her home? Did she realize that maybe she needed to change her housing situation. If she doesn't, then your offer of 60% of the ARV probably isn't gonna open her eyes. But, what you have there is a lead a good phone number and some regular contact might eventually lead to a deal.

    I haven't had anyone confrontational but, I've been treated like a pest or burden. 

    I'm in Texas so for foreclosure properties are auctioned monthly.  I will only door knock those that are headed to sale that month. I also like to door knock those because I can identify vacant properties.  That is someone that has already gone out the door, that is a great lead.  I use a skip tracing platform to try and track them down and hopefully close a deal.

    Your experienced guy's technique of disarming the home owner, I substitute I'm here to help, and that is probably the reason I've not experienced these confrontations.

    1Reply
  • Jessie Bienvenu
    Investor · Helotes, TX · Member since 2015 · 27 posts · 13 votes
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    I also use a resource to call every lead I can, if I can reach them by phone great I would rather have my fingers do the walking.  But, I go knock those that I can't reach via telephone.

    1Reply
  • Devin Scott
    Investor · Milton, DE · Member since 2015 · 65 posts · 14 votes
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    Great info @Mark Graziano, @Jessie Bienvenu, @Genna Andersen

    Where do you get the pre foreclosure leads from? 

    0Reply
  • Jessie Bienvenu
    Investor · Helotes, TX · Member since 2015 · 27 posts · 13 votes
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    I use a Texas specific site flsonline.com

    1Reply
  • Larry K.
    Investor and Architect · Ramsey, NJ · Member since 2010 · 305 posts · 84 votes
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    good for you for going for it. keep in mind that the house is probably underwater though. so you won't be able to a straight quick buy. you will be looking at a short sale process with their lender 

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  • Genna Andersen
    Layton, UT · Member since 2015 · 2 posts · 7 votes
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    @Devin Scott

    I use a utah website, utahforeclosures.com

    1Reply
  • Mark Graziano
    OP
    Investor · Acworth, GA · Member since 2015 · 95 posts · 23 votes
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    @Devin Scott They are published here in a local newspaper as well as going to that 

    newspapers site, clicking legal notices and then foreclosures

    0Reply
  • Mark Graziano
    OP
    Investor · Acworth, GA · Member since 2015 · 95 posts · 23 votes
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    @Genna Andersen

    How do those phone calls usually go?

    Hi, my name is Mark.   I am  calling because I buy houses and wanted to know if you were thinking out selling yours?

    0Reply
  • William Hochstedler
    Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
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    Some very good advice from @Jessie Bienvenu

    I do something similar. "Hi I'm a real estate investor/agent and it's come to my attention that you're having trouble with your mortgage.  Have you gotten that sorted out?"  And see where the conversation goes.

    It differs from Jessie's only because, as agents, we want to keep open the option to discuss s short sale with them as well.

    With my opener, it gives them an easy way out at which point I give them a flyer and a business cards and tell them to give me a call if their information changes.  And then I go back.  In most cases, I am not sitting in their living room until the second or third visit.  If you're one-and-done you are leaving most of the meat on the table because these folks are, by definition, vulnerable and scared.

    You can supplement your marketing with mailings and phone calls, but nothing beats good old fashion door knocking where you can see the house, talk to the neighbors, get a sense of the borrower's grasp of the situation, etc.

    Remember that a lot of these people have creditors bugging them all the time.  They might not answer the phone or even the door, for that matter.  Persistence will win the day over all of your competition playing the numbers game.

    @Mark Graziano  You need to figure out why your contact rates are so low.  It sounds like you are going at a good time when people should be home.  Are they there but not answering the door?  Figure out and readjust.

    Finally, I don't know the foreclosure process in Georgia, but here we have a notice of default recorded at the county recorder's office.  This is recorded a minimum of 90 days before they can proceed with a sale which will include a recorded notice of sale and a published legal notice.  I'd start at the recorder.  Many title companies also send out default lists.  All syndicators and services are pulling from the same public records.

    Good luck.

    6Reply
  • Mark Graziano
    OP
    Investor · Acworth, GA · Member since 2015 · 95 posts · 23 votes
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    @William Hochstedler  Thanks for all the great advice.

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  • Stan Butler
    Investor · Roswell, GA · Member since 2008 · 231 posts · 104 votes
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    Originally posted by @William Hochstedler:

    Finally, I don't know the foreclosure process in Georgia, but here we have a notice of default recorded at the county recorder's office.  This is recorded a minimum of 90 days before they can proceed with a sale which will include a recorded notice of sale and a published legal notice.  I'd start at the recorder.  Many title companies also send out default lists.  All syndicators and services are pulling from the same public records.

    Good luck.

    The process is very fast here, one of the quickest in the nation. We are a non-judicial state so very rarely is there a NOD recorded. The property only needs to be advertised in the county paper of record for 4 weeks before the auction. So we are generally talking about a window of 28-32 days....

    0Reply
  • Ken Garza
    Twin Lakes, WI · Member since 2015 · 19 posts · 6 votes
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    Great topic you obviously aren't afraid of talking to strangers. Good start I think the more comfortable you get The more approachable you'll be, and like mentioned above the more they see you, the more comfortable they will be talking to you about their personal situation. Keep up the hard work and keep us informed
    0Reply
  • William Hochstedler
    Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
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    Originally posted by @Stan Butler:

    Wow.  That's pretty fast.  We are a statutory state as well and part of the process requires a NoD.  What's the first trigger there if a notice of default is not required?

    One month is not much time to build rapport.  Is the percentage of sale notices to sales pretty high?  I would think that most borrowers would be pretty far gone and have a hard time to recover with such a short window.  Typically how many missed payments are there before the sale notice?

    If this is the case and you are in a competitive market, I would consider other sources of distress to get ahead of the curve:

    • Collection judgments
    • Divorce judgments
    • Physical deterioration of the property (this is why a farm area is important)

    Some people that might be able to tip you off:

    • Collection agencies
    • Attorneys
    • Car dealerships
    • Mail carriers

    I know a guy who picked up a few properties every year from going to yard sales.

    Be creative.


    1Reply
  • Ana G.
    Wholesaler · Miami, FL · Member since 2015 · 202 posts · 149 votes
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    If the seller isn't home, leave a post it on the door and a bandit sign in the yard. If you have the guts, leave your cash offer on the post it that you stick to the door. Last time I did that, I got a ton of call backs. Put out about 500 notes (along with 10 signs on the pre foreclosure lawns) and got like 50 calls. Everyone wanted retail but you can't beat that response rate for $20 and about 3-4 hours.
    2Reply
  • Tim Booz
    Specialist · Parsippany NJ · Member since 2010 · 128 posts · 47 votes
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    @Mark Graziano

    I speak to a lot of angry sellers, either foreclosures or expired listings. One thing I've found that helps a lot is to put  salesmanship aside at first, and try to come from a place of contribution.

    Do you have any resources that can help them? How have you helped other people in their situation? What does the foreclosure process look like if they don't do anything?

    In my experience these homeowners are frustrated, and feel like it's them against (whoever - the bank - the market - the economy...pick your bad guy and insert here). If you have some tools to help make that fight easier, or at least make them more informed against their adversary, you'll have their attention, and maybe a little of their trust. 

    If you show up selling something for your own good right out of the gate you may very well be the adversary - they're probably receiving a lot of calls, letters, and knocks from people trying to profit off of their hardship.

     If they don't want to work with you, now you have a positive experience with someone who will probably take another phone call from you, or maybe even a referral to another service person. 

    I know as a real estate broker and a property manager I'd welcome an introduction to them, and it definitely has value. I'm sure that contact would be valuable to others as well, you'd just have to figure out the who and the how.

    5Reply
  • Benjamin Cowles
    Cape Coral, FL · Member since 2008 · 469 posts · 32 votes
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    Originally posted by @Genna Andersen:

    Hey Mark, you might want to try calling, I think it is easier to do all the conversation over the phone, plus it is so much faster!! I get all my information from Inquiso.com, it is an awesome website that tells you all the information on a home you are interested in including the phone number of the resident. Hope this helps! Good luck!

     Couldn't find any info on their website on pricing. How much for inquiso services? Thanks

    0Reply
  • Benjamin Cowles
    Cape Coral, FL · Member since 2008 · 469 posts · 32 votes
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    Originally posted by @Ana G.:
    If the seller isn't home, leave a post it on the door and a bandit sign in the yard. If you have the guts, leave your cash offer on the post it that you stick to the door. Last time I did that, I got a ton of call backs. Put out about 500 notes (along with 10 signs on the pre foreclosure lawns) and got like 50 calls. Everyone wanted retail but you can't beat that response rate for $20 and about 3-4 hours.

     A bandit sign in the yard?? That's ballsie.

    0Reply
  • Damir KamberPro Member
    Investor · Roswell, GA · Member since 2014 · 234 posts · 97 votes
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    Amazing thread!! I recently read a book by Seth Godin called "Permission Marketing." At the end of the day we are still humans and have feelings. My approach is to have my potential clients tell me when it's alright to speak to them. Approach them as a friend and ask questions like "What's going on? "Can I help you in any way?" Bandit signs in someone's yard that is about to lose their home?? Sorry but that's BS! Are we solving problems or taking advantage? To each is own I guess.

    @Mark Graziano keep working hard and as @William Hochstedler said, get creative. But please, do it because you want to help others solve their problem and not because you are just looking for just another deal!

    Cheers, 

    Damir 

    2Reply
  • Andre Key
    Investor · Austin, TX · Member since 2011 · 155 posts · 23 votes
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    I would agree that contacting leads by phone may be more effective.  I find that folks that are in foreclosure especially those like in Texas who are weeks away from the court steps maybe in a "threw my hands up attitude." I find that at lot of folks are bitter and even in denial.  I say this to say that you would benefit from contacting more people on phone because you will go through quite a few disgruntle folk before you get to ones open to use your solution.

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  • Mark Graziano
    OP
    Investor · Acworth, GA · Member since 2015 · 95 posts · 23 votes
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    @Benjamin Cowles         I have not used the service but I think it is $5 for an individual search and $30 for the month. 

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  • Benjamin Cowles
    Cape Coral, FL · Member since 2008 · 469 posts · 32 votes
    11y

    thanks @Mark Graziano. Good to know

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  • Corey Boone
    New to Real Estate · Lorton, VA · Member since 2008 · 34 posts · 11 votes
    10y

    This is all great information. It was really helpful to read, thanks. @Mark Graziano glad to know that there are still some investors that like face to face interaction. I am always looking for ways to improve my process. I am 3 months in and looking for my first deal through door knocking.

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