Grand Rapids, MI · Member since 2016 · 36 posts · 5 votes
Hi All,
I have a list of 48 property owners who are due to be foreclosed on June 30th.
Rather than mailing them letter I went and hand posted them just as it is my first time marketing and wanted to get a feel for sellers.
I was able to speak to 8 owners in person of which none of them seemed motivated. I explained I was looking to buy properties in the area for cash, as-is, no repairs, no commissions and no need to pay off delinquent taxes... the responses were 'not right now', 'I'm never selling' and 'I'm leaving this to my family once I go'.
Most of the properties need to pay $5-$8k within 2 weeks of which (no disrespect) none of them looked like they had that cash lying around.
SO... WHY ARE THEY NOT MOTIVATED AND HOW DO I GO ABOUT GETTING THE PROPERTIES?
Any insight would be appreciated!
Thanks!
Property Manager · Griffith, IN · Member since 2015 · 1k+ posts · 913 votes
9y
Couple of things- people have a front to them especially to someone they don't know. Put yourself in their shoes. Some random dude comes to their house and claims he's interested in buying houses in the neighborhood. Don't believe these people are naive. The majority know exactly what's happening in 2 weeks. So of course they put up a front and pretend nothing is wrong. I don't beat around the bush and I'd let them know why I was there. Sympathize with their difficult situation and explain how you can help if they want it.
"Hi, I'm Adrien. You don't know me but I've been able to help a lot of families out here. This may or may not be a fit for you and either way is fine. I noticed your property was due to be foreclosed on because of back taxes on the 30th in 9 days. If you're not able to redeem it yourself and interested, I'm open to giving you a cash offer on your home which would pay off the taxes and put some money in your pocket before you lose the house. Is that something you'd like to get more info on?"
Rental Property Investor · Pasadena, CA · Member since 2016 · 164 posts · 149 votes
9y
You have to think of the kind of people and their psychology/characteristics, etc that led them to be in that predicament to begin with and realize that they are at times, for lack of better word, lazy. They won't take action unless something REALLY forces them to, up to and including being kicked out of their house because the county will take it. In some counties you have to be behind on taxes for like 5 years before you're kicked out, so just because they are delinquent, doesn't mean they still can't live there. These people tend to not care about their credit or financial situation.
The best you can try to do with these people is show them VERY simply what the steps are when they become delinquent and how their house can be taken from them and you just want them to be informed and to help if they want it.
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
9y
I wouldn't focus too much on the mentality of these people, you'll drive yourself crazy. Instead try to focus on how to reach out to many more people than 48, your odds aren't great at that number.
Property Manager · Griffith, IN · Member since 2015 · 1k+ posts · 913 votes
9y
Couple of things- people have a front to them especially to someone they don't know. Put yourself in their shoes. Some random dude comes to their house and claims he's interested in buying houses in the neighborhood. Don't believe these people are naive. The majority know exactly what's happening in 2 weeks. So of course they put up a front and pretend nothing is wrong. I don't beat around the bush and I'd let them know why I was there. Sympathize with their difficult situation and explain how you can help if they want it.
"Hi, I'm Adrien. You don't know me but I've been able to help a lot of families out here. This may or may not be a fit for you and either way is fine. I noticed your property was due to be foreclosed on because of back taxes on the 30th in 9 days. If you're not able to redeem it yourself and interested, I'm open to giving you a cash offer on your home which would pay off the taxes and put some money in your pocket before you lose the house. Is that something you'd like to get more info on?"
Grand Rapids, MI · Member since 2016 · 36 posts · 5 votes
9y
Michael Lucero
Thank you for the response. In Kent County it is 3 years so they literally have until June 30th until they are out. I crosschecked with county records to make sure they were all 3 years. I will definitely look at using a timescale sheet in my direct marketing 👍🏻
Grand Rapids, MI · Member since 2016 · 36 posts · 5 votes
9y
Nick Colamarino
What other avenues have you used to generate leads? I have only just started so my thinking was with the June 30th tax deadline that these leads would be the most motivated.
I read about burned out landlords and vacant properties but struggle to find the best way to find/get contact info for them.... Any others?
Thanks guys!
Grand Rapids, MI · Member since 2016 · 36 posts · 5 votes
9y
Adrien S.
Thank you for the feedback and I will definitely look at this approach. People seemed angry that I knew about their situation, almost like I am 'sneaky'. If they ask about how I know what would you answer with? Public records, assistant passed on addresses...?
Thanks!
Property Manager · Griffith, IN · Member since 2015 · 1k+ posts · 913 votes
9y
Tell them how you got it. My county publishes a list of houses going up for tax sale. Just be honest and sincere about helping them first. But I hope you have the ability to close those ASAP and not dick around with wholesaling them. That's the last thing they need is a fake buyer when they have under 10 days to get it done.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
9y
@James Gilpin Just because someone should be motivated does not mean they will be motivated. Did you tell them about the tax situation? Sometimes people really don't know. I would persist in a nice way. If you still get no where, as @Nick C. said, move on to other leads.
Are you really sure they lose there house on the 30th? Have they gone through tax foreclosure? I do not know Michigan law but I am pretty confident in saying that just because someone is three years behind they automatically loose their house. They are entitled to due process. My guess is the process can start after 3 years.
To find burnt out landlords, go to rent court. The filings should be public info. Also for rent ads could be a burnt out landlord, that just had an eviction.
Yes if someone asks how I got information, I say "I was looking through the pubic records" or "I was reading the legal notices in the paper" etc.
Grand Rapids, MI · Member since 2016 · 36 posts · 5 votes
9y
Ned Carey
Hi Ned, thank you for input. I am sure as I called the number and spoke to the lady. March 30th is the first deadline or if they ask for an extension is goes to June 30th.
When I cross referenced my data with county records there were 53 properties that went foreclosed on March 30th and then the rest I contacted... bad timing as if I had started a month or two earlier I may have been able to reach them in time!
What avenue have you seen best results? Our plan is fix and flip/hold or if not enough spread/rents then to wholesale.
Thanks!
Austin, TX · Member since 2016 · 45 posts · 24 votes
9y
Consistency is key. Their personal, individual reasons for denying your offer are irrelevant and trying to identify them is a waste of your valuable time. Focus on your own goal, which is to acquire their properties. Don't give up because of one "no" to your offer. Send a letter, a postcard, anything. Then send another. And another. Go back to see them and remind them they have a way out of their situation. Give them a call. Show them you're committed and that you're not going away. Make them remember you and make them want to sell to you. One rejection isn't enough to turn away. And of course, as mentioned prior, broaden your marketing to larger lists, more people, and so on. Best of luck!
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
9y
Well from what you have written Michigan must be a tax deed state. Just go to the auction and buy the properties. I am in MD where they sell tax liens and then I foreclose on the tax lien. That is now where most of my deals come from.