Hello Bird Dogs,
I have an arrangement with a dealer to scout distressed sellers who are ready to walk away from the property (San Diego)
What is the best way for me to find these folks. I think I can benefit them if I can find them.
Should I advertise. If I advertise on craigslist how can I distinguish myself from the 100’s out there that are doing the same thing on the list.
I want to benefit my family by earning extra income, but I truly want to benefit people in distress as well
what you want to do is think about what situations make people need to get rid of their property. There are lots of them. Figure out how to find these people and then start knocking on doors.
Become a Loan Advocate.
The only “help” homeowners have from the government right now is HOPE Now and Project Lifeline. They are debt counselors (non profit) that are supposed to help homeowners negotiate new terms from their banks on reset homeloans. The only problem is that what they are really are agents of the Big 5 banks to try and get people to stay with their giant upside down loans. Some counselors have even told people to stop paying credit cards and health insurance and use the money to catch up on mortgage payments. Now, does that sound like a homeowner advocate or a bank advocate to you?
There are many situations in which walking away is the logical, survival decision for a family, but many are afraid, ashamed or think it’s morally reprehensible to flake on their mortgage even if it is more than what the house is worth. I suggest you get educated on credit rebuilding programs and be able to answer homeowners’ questions about credit and tax consequences of walking away or short sale. (Email me if you want my recommendation for credit rebuilding programs.)
You’ll probably find tons of people relieved to know that short selling or foreclosure is a legitimate alternative for them. You’ll be helping distressed homeowners by showing them that there are real options out there besides the ridiculous repayment plans being offered (or forced upon) them by their lenders…AND you’ll be finding good deals for your investors.
I have a Loan Advocacy flier you might like.
Find divorce attorneys that will give you leads
Some cheap ways to get your phone ringing with motivated sellers is to put magnet signs on your car, post flyers, hand out business cards, and ride neighborhoods. Go to your local REIA meetings and get to know EVERYONE (even if they are new like you). NETWORK with everyone and tell everyone that you are a real estate investor and what you are looking for.
I don’t know how the foreclosure system runs in CA, but in Michigan banks need to run info in a publication during the foreclosure process, find out if there are any publications that banks run in your market, then you will have a list of people who are waiting to default on their loans (walk away)
Run some inexpensive ads with a toll free number, or a website that offers a free report on something like “6 steps you must take before walking away from your home”. Keep in mind the report doesn’t need to be anything fancy, but it will give you suspects, that you can convert to prospects later down the road.
Try to differentiate yourself from what other people are doing other wise your just one more person on the pile of people looking for motivated sellers. By all means do what other people do, but then do something more.