I have been marketing for the past couple of months (mailing campaign & bandit signs) to preforeclosures and already have some solid leads - good short sale candidates. However, 2007 is going to be my “breakout” year and one of the things I plan on doing is “door knocking” to kick things up a notch . I am looking for some advice on this technique. Any input would be appreciated. Thanks, Mark.
Takes some guts but worth it. Be polite, sincere, tell them who you are and that you understand that they have a problem with thier mortgage. This is were they will tell you they need help or say they have already fixed it. If they need help tell them how you can solve there problems and “paint a picture for them”. If they say already taken care of, ask them how they did that, and that you checked with the trustee this morning and the sale was still on. Something like that ussualy gets them to open up.
Good luck.
this topic was recently discussed here. you can run a search
I do believe that Dan Doran has a program about the proper technique to door knocking.
Dan Doran advocates that you hire someone to door knock.
I dont have money to hire people to do that.
slharpe: you could have people knock for you, and pay them a percentage of your profits when you do a deal.
rgchamb is right, you dont need to pay for door knockers/researchers upfront just put in your contract with them they recieve a percentage of the profits. This is the best way to attack foreclosures in a market especially with alot of competition.
Hi …I’m not sure of the amount of money you have to spend. However, your only going to door knock on the ones you know have the most equity. So when your verifying mortgages and such and writing down lienholders why not see if they sell their note?
I have an associate that only buys preforeclosures from 5%-30% of secondliens on home…Prime example is good below…Hme fmv 480,000–1st 300,000–2nd 50,000–total ltv is less than 75%…So you go to foreclosure sale…House goes for 350,000-400,000 or more…So you’ve made enough to satisfy 1st and 2nd lien…YOu picked up 2nd for $20,000–
So you just picked up $30,000 being second lien holder…Unless you don’t do an educated due diligence prior to buying and you have to take control of deal it could cost you more to hold… But with scenario like this there’s excess equity above and beyond mortgage notes…
But it takes some of the hard work out of play with dealing with a homeowner…My associate did 2m last year doing it this way…Banks can be difficult sometimes…But worth the difficulty if you know how to look for the one’s that make the deals… Good Luck!
on top of that idea…there is an even better way to make serious cash…
I work for a private investor who about 10 years ago bought 100 charged off liens from the big banks such as us bank, bank one, gmac, etc…if you have the capital, diligence and right contacts, you can potential get emailed pools of loans that you can research and make an offer on which ever ones who wish. so, you end up purchasing these secured (mostly second mortgages) liens at a discounted rate and the borrower is still responsible for the unpaid principle balance, arrears, etc…the reason the banks sell this notes is because either the borrower filed bk or is lazy and does not make payments and they dont want to pay to foreclose…but the best part and this may sound awful, but when a borrower(s) file bk 7 or 13 whatever, they assume or shall i say their attys assume that either the note was unsecured from the begining or there just a dumbass and did not run a title report…the way bankone shows up on a credit report is charged off. so the law school grad atty assumes it’s unsecured…so many months will go buy after these folks have been discharged from their bk 7 and continue to live in a state of denial, because their atty told them not to pay it…well once they ask their atty 6 months later if their lien survived the bk the atty has no response or obligation to go back and fix it…so alot of the notes i manage ( appox 3500 portfolio) are behind 30+ months… so if you calculate a quick example you will be amazed ( i am goign to use generic numbers so you can get an idea they are not exact)
upb 50000
interest 8%
pymt= 350.00 or so
arrears 2500.00
so right here they owe appox 52500.00
note purchase price 15000.00
postive 37500 and this does not include the monthly interest from each pymt that goes directly to you pocket…but main goal is to get them to refi and pay you off or sell and trust me a short sale would be no problem, lots of leverage
my boss is worth upwards of 65 million+ no joke, own plane, huge mansion. just built a housing developent all because she started buying notes in texas and moved to cali and all has flourished…
have fun
Although I admire your enthusiasm, door knocking is not the most effective approach.
You can cover more ground with direct response advertising and mail then you could ever by hitting the pavement.
Regards,
Scott Miller
I Live in a market that is ripe with pre-foreclosures. I have foudn a very good responce to badit signs (about 1-3 calls a day per 30). And with a well written mailer I find my responce to be about 3-5 percent. I know thisa seems high I think is is above average but thats what i am getting right now. My probablem is finding buyers. I have about 10 houses amonth 1 could move if I was networked a little better.
3-5 response rate is respectable; where are located?
Regards,
Scott Miller