Door knocking on pre foreclosure properties?

Question

Hello BP community! I am a newbie getting started in the real estate world by focusing on wholesales. My approach to finding deals is door-knocking on pre foreclosure properties. I'm planning on doing my first round this weekend. What type of questions should I be asking the homeowners? Any tips on how I should approach the homeowners? Any advice on door knocking from experience wholesalers will be appreciated. Thank you all in advance!

Rich Baer · Answer

@Elizabeth Martinez

The first thing to do is to check your State laws on this approach. In Maryland, for the most part, it has been made an illegal practice with severe civil penalties.

Rich Baer, Esq.

Bill Gulley · Answer

No, it's not okay! You're bucking federal law! You're also an inch away from interference with a federally insured lender in a foreclosure.

Actually, I had to walk away from my computer and come down from the ceiling.

It seems you are another newbie wholesaler, I don't believe you have enough knowledge to be getting ideas  dealing with foreclosure issues.

My advice, stay away from gurus and learn real estate that includes being aware of applicable laws. :)

Account Closed · Answer

@Elizabeth Martinez Good luck. I'm in the same boat. Started direct mail campaign this past week. Driving for dollars. Bandit signs this weekend. We all have to start somewhere. Lets go get this money

Elizabeth Martinez · Answer

@Angela DeBorja Thanks for the book recommendation, definitely will check it out.

Elizabeth Martinez · Answer

@Angela DeBorja @Christian Kenworthy @Rich Baer Thank you, I appreciate the feedback. I will rethink my strategy and educate myself on applicable laws.

Eric Pinter · Answer

That is how I got started 12 years ago.  It was time consuming and relatively fruitless.  I did buy a few properties that way, but I stopped doing it quickly because I figured out much better ways to find deals.

Angela DeBorja · Answer

Ok, so both in the mailing and the phone call/deal negotiation, you would not want to imply or mention that you know anything about a foreclosure process occurring. Sounds like this type will not be one of my beginning types of deals!

@Elizabeth Martinez,  based on what I've read and listened to, for time efficiency like @Christian Kenworthy mentioned, advertising sounds like the route to go for general motivated sellers/high equity, not necessarily pre-foreclosures, and start small with volumes that you can handle in terms of incoming phone calls to screen, then put them on a schedule of repetition and follow up over several months.  One book I have read that was helpful was "The Art of Wholesaling Properties" by Aram Shah and Alex Virelles.

Rich Baer · Answer

@Angela DeBorja

A simple mailing is fine. You just have to watch how you word it. If someone calls you have to watch how you structure the deal and what you say to the Seller. It can be tricky.

Angela DeBorja · Answer

Welcome @Elizabeth Martinez, I would consider direct mail first, but if I'm not mistaken, you need to be careful about not mentioning anything about foreclosure in your mailings. @Rich Baer please correct me if I'm wrong! Is it okay at least to mail general "we buy houses" campaigns to preforeclosure lists without mentioning "avoid foreclosure"?

Christian Kenworthy · Answer

@Elizabeth Martinez It depends on what their situation is. Wholesales really only work when there is a decent amount of equity in the deal, which I doubt if they're going under a foreclosure. Do you plan on performing a sub 2? I wouldn't suggest door knocking, it's kind of tacky and not to mention pretty time consuming. If you want to get into wholesaling, your money is gonna be made from advertising and half of that is from following up with people who deny you. Here are some deals you could do depending on different situations

pretty house little equity ----- > buy on land contract-cfd, wrap, sub2, lease option and assign.

pretty house and alot of equity

----- > sub2 and note-mortgage, land contract-cfd, wrap, lease option and assign.

ugly house and alot of equity  ----- > wholesale - straight option, buy w private funds and resell, buy with hard money and resell

Door knocking on pre foreclosure properties?

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