I have recently started to send out letters to owners that have just began the foreclosure process. I am sending them letters that state their house can be bought with cash. I want to simply get some property under contract and then flip it to rehabbers. My question is out of a list of around 15-20 pre-fore’s a day, many are newer homes. Is it realistic to send these homes letters? I do not think so because there isnt really any equity built in yet, but I would like some more opinions. I am targeting homes that are atleast 20-30 years old. Am I on the right track? Thanks for the input.
Howdy CKnighter82:
Yes you are mostly on the right track. If you can narrow down your search you may want to compare loan amount to tax appraisal and send out letters to the ones that have equity. You are correct in that most newer homes will not have any equity as most are bought with as close to 100% loan to value as possible but not all of course. It would be better to target loans that are 10 to 20 years old and not just the house’s age.