I posted this in the wholesaling forum yesterday, but I wanted to get some feedback from here also:
I have just found a bunch of preforclosures in my area this weekend…one is actually on the next street over with at least 70K in equity. I actually was overwhelmed with more potential deals than I can handle. I will be contacting some owners starting tomorrow…probably send a letter first and follow up with a phone call. I am kind of nervous, but excited. I have been networking with some investors, and I plan to try and negotiate a contract on as many as these leads as I can. Of course I cant offer a property until I have a contract, but can I send some info about the properties while I am working on contacting the owners so I can possibly have a buyer lined up? Any suggestions from here? I also did check the mortgage amounts due and comps…did I miss anything?
Next question - does anyone have a sample letter to send the homeowner? I want to make sure I explain the situation and what I can do to help them the correct way.
Just be careful about putting information out there on properties you don’t control. We would hope someone wouldn’t go around you, but I wouldn’t give them the chance.
Thanks for the reply. I realize that and would not give the address or any detailed info about the owner. Just an example…hey I have a home worth X amount with comps at X amount and I am working on getting it under contract…are you interested? Just something basic to get some potential inverstors lined up before hand.
Thanks Tom. This is my first time dealing with Foreclosures and wholesaling, so I want to make sure I am doing things correctly. I have one rental property now, but my job doesnt allow me enough time right now to rehab or manage more properties, so wholesaling is the way for me to go for now.
Finding properties with equity is fairly easy. Finding properties with equity and a motivated seller is tough to find. I can find lots of foreclosures with equity but most of them have lived there awhile, hence why they have equity, and are hesitant to give it up.
I did consider that would be the case. What % of listings do you find that the sellers are actually to the point that they are motivated to make a deal. I figured that I would have to pursue 10 or more listings to get maybe one seller ready to do a deal. What have your experiences been in the foreclsure market?
fl guy,
Results from pre foreclosure investing depend on many variables:
competition among investors in your market,
your marketing campaign effectiveness
investing criteria and
your abilities as an investor to get the deal done, to name a few.
The most important factor for consistent results with preforeclosure is just that, consistency and ability to be ever-present to ways of adapting and improving your system.