Best List to mail for Pretty sub2's.

General Real Estate Investing
1

What is the best list to mail to to get the deed on pretty houses? I am looking in the 150k-300k range. I can buy an absentee owner list, or pre-default list. I want to send out as few letters as possible to get some cash flow before I can send out a bunch more.

2

Well, it depends on many things.

  1. You need houses with enough equity to make it worth while for you. How long should they have lived in the house in your area to notice an appreciation? taking into account the current market conditions. Majority of the people bought using 100% financing or close to it, so you will need to depend on appreciation.
  2. If you want to go after those behind payments, can you come up with the cash to catch up the payments and make any small repairs? how will you recover that money when you sell?
  3. What is the average house price in your area for first time home buyers? Can you find houses in that price range?
3

We’ve been very successful with marketing to sellers that have little to no equity. They can’t be upside down but ideally they’d have $5K to $20K in equity.

You find these sellers by targeting the expired listing in the MLS. The seller is motivated and is open to creative solutions.

Here’s the strategy which is nothing new: Send the seller a Yellow Letter telling them you want to buy the house. When you meet with them negotiate to keep the existing loan in place for up to 3 years and give them $1,000 to $2,500 cash.
Your essentially buying the property “subject to” the existing loan.

Once you have the deal tied up you can then market the property on Craig’s Lists offering 'No Qual Seller Financing" your looking for a retail buyer that has $10K to $15K as a down payment.

You then assign the contract to the new buyer for the difference between what you agreed to pay the seller and the down payment. ($15,000 down payment - $2,500 cash to seller = $12,500 profit)

This in any market is a HUGE opportunity. Just be sure you have the title company service the loan by collecting the payments from the buyer and pay the sellers mortgage company. This way everything is audited.
Do be aware that most bank have the right to call the note “due on sale” although I’ve never heard it happen.

Hope this helps,

Cheers :slight_smile:
Sean