Door knocking

Foreclosures, Short Sales, Tax Foreclosures
1

I’m going to go door to door today, after I compile my fresh list from the courthouse. I filter through the courthouse listings to compose props that I can purchase 70% or less FMV.

I’m going door to door for the experience. I’ll offer my free assistance for the ones who can save thier homes, and offer to save the credit of others. In general I think I’m gonna be doing alot of listening and learning.

I’m going to introduce myself and tell the owner that I’m coming from the county courthouse, and that I noticed thier name on file. I’ll ask if they knew this ( knowing they do ) and offer free assistance. The ones who can save thier house, most likely will anyway. I might be able to shave some expenses getting the loan from default. I’d offer this for free.

My main interest is in the people who can’t save thier home. This is where I know I need to tie up the property. I’m going to use an assignable contract, though I’ll buy the property myself. I use the assignable in case I get multiple deals at one time. In my contract I have a 5 business day legal review. I do this because these purchases are time sensetive, also my attorney suggested it. I know not to take any financial action untill the 5 business days are up and I have a binding contract. In other words don’t make any payments on leins or to the bank untill owning the property. The homeowner must be out as well.

My question is. Am I on the right track? Is there something else I should consider or alter? Does my approach sound about right?
Sense I don’t have a mentor, I’m just doing and learning. I’d accept reward and appreciate a mentor, but until then, I’ll learn and grow.
Thank you for reading this, I look forward to any comments.

Brandon

2

Let’s say everyone receives you with open arm and signs your contract …then what? You should have end buyers already lined up to buy what you are going after. This way you will not have to hope to get paid from these deals…it will be almost guaranteed.

You sound very aggressive and I wish there were ten of you here in the Chicagoland area.

Where are you finding deals?

3

Sounds like we’re on the same page here, so I wanted to add my questions.
I’m doing the same sort of thing except that my local courthouse doesn’t publish lists of that nature. I’m targeting the truly ugly houses. The buyers I have lined up are, myself and a team of contractors, investor leads through various lenders, and realtors.
My question is twofold:
A. Does it make financial sense to work with realtors for such short sales if their commission is 6% anyway?
B. If I can refinance their houses couldn’t I just sell to note to mortgage brokers looking for White Paper?

4

Hello Guru,
I research my deals in Montgomery co MD. I aquire my listing information from the civil index and do a light title search to determine equity.

I’d love to be greeted with open arms. That’s hardly the case.
Most are in serious denial and retort “It’s taken care of” when we both know it’s not. I’m thinking about putting Taking care of “it” on my cards.

I’ve compiled a list of investers by seeing who else is buying local deals. I look for individuals or private companies that are taking over deeds. This gives me a continuos supply of contacts, that I know have some capitol. I’m hoping to hone my skills, to the point that I don’t need to use capitol, for these deals.

ctguy,
What state are you in? All the information I gain is public record.
Good luck on those rehabs, I like that market too!

I’m worn out, been a long day.

5

I like you’re style, you’re a real go getter. Anytime you want to come on down to Middle Georgia you’re more than welcome…seems to me that you should be a regular at the local Real Estate Investors Club, are you a member?

6

Is door knocking really the best way to get a deal. I been door knocking for a while. I get a lot of excuse from Homewoners: (1) Claim howoner doesn’t live there (2) Taken care of the Situation (3) Working with someone on it already (4)Were just visitor

7

Looks like your on the right track, good luck!

We have been doing preforeclosure since 1992. Tried door knocking. The best for us has been getting leads from mortgage brokers and/or bankruptcy attornies.

We just ask for there throw aways and we pay them.

We also offer to pay at or slightely below market value and offer a lease option to the sellers.

However we are carefull to sell the property back for the same or lower price than we buy it for.

We also offer free mentoring if we are allowed to invest $$ in your project.

8

Fortunate,
How did your 1st door knocking experience go? I
have done some door knocking in my area (southern cali) , but I usually get the same answer: “It has already been taken care of”. It’s funny though because one home I went to ended up an REO within like a month after I approached the owner.
I plan to keeping knocking though. I also do mass mailings to pre-foreclosures.

Keep us posted as to your success.

9

I do the door knock also and get the same results most of the time. If they tell me they have something worked out, my respomse is that it doesn’t work out all the time and i may be able to offer you a better deal. It works on occassion. Also heard a new approach about going around and “do a random knock on the foreclosure house” and tell them i’m in the area looking to buy a new house. I write my name and cell number on a piece of paper and hand them it. I MAKE them promise to call me if they know anyone who’s looking to sell. That approach has worked for me 2x already. It helps that I’m a mortgage broker and can help them 2 different ways also.

                                                     Andy
10

FUTUREREILEGEND,
I tried a Baltimore investment group (not going to say) here, but everyone wanted to sell me slum props or take advantage of me, not knowing the Baltimore area. I’d like to try Chevy Chases group, havn’t gone yet.

As for middle Georgia, nice place to take a vacation. I saw some really nice resorts there. It would be neet if I could fly there, make a deal, then vacation. (write off!) If I get my skills to the point, I’ll try it.

Ray Short,
I’m not sure if doorknocking is the best, I’m green so I can’t see if my mailings are working yet. I havn’t had a mailing reply on 54 mailings, started them Jan. Phone calling hasn’t been much help either. I think people who are in foreclosure are probably screening thier calls. Even if I could get them on the phone, I like beign able to see them better.
That’s just me though, I have better charisma in person. Plus I dress down, but am well groomed. I don’t want to scare them, thinking I’m a creditor.
I state my name and ask directly… ie " Hello my name is Brandon, are you Mr. Smith?" I sometimes get the reply " That depends who’s asking." if so I say something, depending if the person seems receptive or not, like " Well, I’m coming from the county courthouse and could save Mr Smith a great deal of time and money. If you see Mr Smith tell him I can work for free, and give him my card." I’ve had 2 call backs so far with that. Familliar voices. Heh.
I guess I try to plant the seed, even if they don’t seem receptive or are hiding.
I also try to be the first on their doorstep. If I see a case that has equity and is filed that day, I’ll leave the courthouse, to see if thier home. If not I’ll go back after the courthouse closes and try again.

Erv,
Thanks. Good to hear that I’m going in the right direction. I havn’t been able to close a deal yet, but have a feeling I will. I’m changing my approach a little and learning.
I like the preforeclosure market so far, but am just using it as a means to an end.

mustbethe$,
My first doorknocking, noone was home, or they were hiding. The first answer I had, the lady spoke spanish, she got her husband, he came to the door said Ok Ok took my card then shut the door on me. He never called me back. That was in late Jan.
I try to get the words in that: I’m fast, It’s never too late to contact me, I can give you cash in 5 days, If you can keep your home, which I think, in your case you can, I’m free!
Yeah, the “It’s taken care of” burns me. I think this is autopilot for denial. I’m open to creative suggestions for a response to this one, it’s frequent.

Andy,
Thanks for the creative approach! Every bit helps. That was a good one, quick. I can see using alot of smiles beign energetic and beign in and out quick with that approach. Neet!

11

How do you get leads from morgage brokers and bankrupt attoryneys?

I have been calling bankrupt attorneys and then if they express interest, sending them my business cards and putting them on my mail list. I can tell they refer because they tell me they do. What do you think of that approach or is there a better way to get the referalls going?

12

We find that mortgage brokers provide us more leads than do bk attorneys.

Our previous attorney referers have been holding back with leads due to the new laws inacted in Oct.

So right now mortgage brokers are 80-85% of our deals.

13

How do you get leads from mortgage brokers?

14

Pick out an area where you would like to work. Go to each office, drop off a flyer. tell them what you do and are looking for. Tell them how much you will pay them, then ask!!!

15

Thanks. How much do you pay them? Do you write up any agreement or just do verbally?

What process did you use to get bankrupt attorn referrals?

16

Make offers verbaly. If you screw them once, they will never refer to you again.

We pay them what ever they ask for if the deal has equity. If the equity is less tha 15% we pay them one point.

Now that I told you that you will probably offer them more, and we will loose a broker client. Good Luck

17

Personally, I find it very rude to go knocking on the door of someone under stress financially. And many areas have solicitor laws against it. I mean, think about it… how many professionals so you know who go door to door? Like maintenance and tradespeople who do so, you will appear to be an amateur without an office, any licensing required, etc. I’d be surprised if anyone really gets deals that way. They may tell you they do, but it would be a really ignorant homeowner who would work with you. Consumer agencies have long warned against dealing with door-to-door shysters. You would have to overcome that conditioning, among other things. I’d send you packing if you came to my door, like I would the driveway sealer folks who spray oil on your drive and disappear. Don’t want to seem harsh to you, but I think you’re wasting your time and intruding at a very sensitive time in these folks lives. Chances are, you are doing this to “get an edge” on your many competitors. I really don’t think it gives you one. Please don’t do that to people. You are not giving them anything they can’t get in their own time. Traditional marketing seems to take longer, but the gradual credibility you gain by “being around for a while” is what you need to succeed. Your word of mouth will not be positive going door to door.

18

Door knocking is the greatest thing I ever learned in this website ever! The last time I door knocked, I had three deals in 8 days. I am in Southern Cal so if MUSTBETH, wants some leads, I am willing to share, any specific question in this forum. By the way, I learned all I needed on this web site…and I am willing to share.
Mass mailing has not been my thing. Bird doggers have been great too. I havent tried Mortgage brokers or Bk attroneys.
First few knocks were rude. I was once almost bit by a dog, once met with a mean gun holding guy who told me to hit the road even before I spoke to hime lest he blows me off. I kept on trying and learning. It worked for me. It will work for you. Just keep doing what you are doing. Good Luck

19

Glad to here from you, SOCALHITMAN.

My business partner recently went door knocking and generated a few possible leads. We haven’t heard back from any prospective sellers yet, but the overall experience was good. Most people said they had already taken care of the situation ( we focus on pre-foreclosures) or were in the process of selling their home at near market valuie.

We start off by doing an initial mass mailing, then follow-up with door knocking.

What area of SoCal do you invest in IE, Los Angeles, Riverside, High Desert?

20

I am in San Bernardino and Riverside. It has been fun out here! What part of Cal are you in? In which REI club do you belong?