I am fairly new to this preforclosure process. I wanted to know how some of you investors get your leads. Do you guys go door to door and if so what kind of success have you had? Also do you guys send out letters and what do you write in them to get the homeowners attention?
Any help will be appreciated
I just wanted to knock this back up to the top of the list. It seems like a pretty good subject to me.
ANYONE?
One of the best ways I know of is to just drive your target neighborhoods frequently and look for signs of distressed properties:
- yard overgrown and not cared for
- boarded up
- house in bad disrepair
- broken windows
- fire damage
- etc., etc.
Then do your research to find out who the owner is and contact them. Sounds easier than it is, I know. But that’s a great way to get started!
Good Luck!
I get my list from Foreclosures.com. They have people in several states and counties daily collecting the info and then posting it daily at 12:00 noon. The leads have been very good and fresh and I know people who are working this list and doing 10-15 deals per year. I just started, so I haven’t done one yet - but the people I’ve gone out and talked to definitely are in foreclosure.
I’ve tried mailing - but never gotten a call back. It doesn’t work for me!
When it comes to mailing to pre-forclosures you have to really unleash. I mail a letter then a postcard with my branding and a “Did you know…?” message educating them about the foreclosure process. I send a new postcard every two days. Not sure where you’re at but this seems to work in CA and I don’t think it gets more competitive then here and FL.
#1 rule in marketing is repeat, repeat, repeat!
Success
Have you tried working directly with lenders? Depending on what part of the country your in, some lenders will work with you as long as you have a letter of credit so they know if they make a deal you can follow through.
Go Get’em!
Ray - Indiana
Ray,
So you are saying that, the lenders cut a deal with the
mortgagee and try to get the house. At which point, if
you are already in the loop with the lender, then you
can purchase the house direct.
Is that true?
I guess the lenders will not even talk, since you are
no way related to the home owner. This sounds like a
good way in.
I do door knocking in NC. Not very successful so far.
-Krish
Good Morning Krish,
As a general rule, lenders will not work directly with investors, they feel once they open up that door they will be answering phone calls all day from investors, many of them not following through with a purchase.
From other relationships I have, I have been blessed with the opportunity to work directly with several lenders, however I sometimes have to purchase properties, many time 10-20 at a time and I am not ready for them. But I do this to keep the relationship going.
N.C. is a good market, I would suggest (here comes the disclaimer…I always suggest you talk with your attorney, accountant or other trusted professional before doing anything I suggest…whew, I’m glad I got that out of the way)
OK, I would suggest you track those properties following behind in payments by;
- Tracking the Notices of Default section of your newspaper.
- Advertise that you buy homes, whether this be in the newspaper, business cards, talk with local real estate, etc.
The biggest thing to remember is these peopel are scared, embarrassed and sometimes very upset, feeling they are the victim in the situation they are in.
When I meet with someone, (I don’t discuss any details on the phone) who is behind in their payments, sometimes in default, I work out the financial details with them. I then ask them to sign a Quit Claim and and Power of Attorney, along with a letter to their lender stating they are not going to be making any payments, they can’t make any more payments and they have no intention of making any more payments. This let’s the lender know the current homeowner is not going to be in the picture. I also take photo’s of the property, so I can show the lender the property is not in great shape.
Remember, the lender would rather not foreclose.
At this point, you can simply complete a lease-option with the seller, or complete a short-sale with the lender. Either way, it will cost you whatever it takes to bring the loan current. Do this a few times with a particular lender and then approach them with, “Would you mind telling me what day of the month you file the paperwork with the courthouse regarding Notices of Default?”
You then make sure you are at the courthouse that day, noting the “public” information being filed and therefore knowing about these possible deals before they even hit the newspaper.
Then, it’s just a matter of time before the lender will allow you to contact them regarding these default notices before they send them to the courthouse. There is a great deal of detail not noted here when you get to this point, but hopefully this helps.
Go Get’em!
Ray Rochefort
Managing Member
Purpose Investments LLC
Indiana
So i checked out that foreclosures.com site out and it sems to be ok. Im a bit confused, am I suppose to knock on their door and talk to them?
What I did was use my friend who work at the title co. She gives me the current listings every week. Maybe you or someone you know knows somebody who works for the title co that will get you the listings.
Good Morning,
Hey Ray Just reading and had a few questions??
I’m trying to figuire out if its better to use a quit claim deed verses a warranty deed and will I be able to get title insurance on a quit claim? Also along the same lines should I take in a Land Trust verses deeded directly in my company name?
You had mentioned a power of attorney, do you use this to request information from lenders or do you still get an Authorization to release information signed. What if any is the difference?
Thanks for any help
Joe