I have started to send out letters to pre-foreclosed home owners. My response was great, I have three that want to do the deal, and I have investors wanting to take on the deals. What would be my next move as far as setting up the closing and getting paid. Thanks in advance.
Make sure you have the home owner sign a purchase/sales contract agreement. You can then assign the contract to your investor for a fee or set up a double closing. In either case you won’t have to pay, just collect profits.
Where do you get your pre-foreclosure leads?
After the owner signs the aggrement how does the assignment work, and how does the bank OK that for the investor to be approved from lender and we receive our money.
This is somewhat hard to answer considering the lack of details.
Are you assigning contracts?
Flipping the properties to other investors?
Using investors funds to purchase?
Have you verified your investors have the funds or the availability of funds?
Do you have the investors under contract?
Do you have the homes under contract?
Do you have title companies lined up to handle this?
Whatever happened to this? These?
Threr are times when things get real complicated. This ain`t one of those times. Get owner to sign contract for purchase price! (DO NOT SIGN YOUR NAME ON THE CONTRACT). Tell the owner your partner will handle the legal paper work. Take contract to money person! Make your fee known to money person! Collect money,(THANK MONEY PERSON),say good by, go to bank with smile on face. Find another great buy!
when you have the house, have the investor- what should the fee be? $5000 ? or would you start higher & neogatiate the fee with investor. thanks hope it’s ok to add on to this post
Your reasignment to your money person should only be with this in mind.
(a) Do I want to work with this person again?
(b) How much money is to be made on the deal?
(c) Will I satisfy my (money person) with my offer?
(d) will they want to buy from me again?
If you can answer these questions,you are on the way to making lots of friends and(MONEY) in this business!
My question is for Joe…
Can you explain to someone just starting out how that works? I am able to find the deals, but how do I charge a “finders” fee, per say, when taking it to an investor. Just an example of how this works.
The finder’s fee can be a flat fee, or a percentage of the deal.
I saw someone ask if $5,000 was too much or too little. If it’s a $200-$300k deal maybe, if you did everything except for provide the money, and obtained a great deal for the ultimate buyer, saving them thousands.
Just my 2 cents worth
Please share what the mailers look like and how often you are sending them out.
I saw someone asked, but never saw an answer - where do you get your preforclosure leads? I would love to give this a try, if not to assign possible to just buy myself. I have no experience in preforclosure, though. I have only dealt w/ REO. Thanks.
…so where do you get the leads? these people are helping you and you can’t provide information back?
Can I ask what your letter consisted of??
I have a pretty good letter that I send out but, I don’t get much of a response from them here in California. I get all my deal primarily through Door knocks,referrals from lenders,I also have a couple of friends that work in the loss mitgation dept so they sometimes throw a few leads my way. But,I would like to find out the content of the letters you’re sending.
I have been using www.realtytrac.com. I can get listings on foreclosures in any state, any county, homes, or commercial. It costs me $30/ month, and you can even set up an account, write letters and have them mailed out. Caution: The addresses are sometimes wrong, so I go to the county appraisors and get the correct address using the PCN number. My problem is I’m not getting real responses. Been doing this for about 4 months and have had 3 phone calls. Mostly people wanting to sell for what it’s worth, but I need help w/ my letter format
Any help would be appreciated.
Same here!! Not getting the responses I want… Any input??
I just had some post cards printed up, so I’m going to try that, and the next step is making the phone calls. I’m very nervous about doing it that way though, but from what I hear, no hardly any one is doing it and the people that are, are the ones making the deals.
I recently signed up with them too. They give you lots of listings, I hope I made a good move.
Incidentally – there’s a listing very close to where I live, prime location, terrible condition – only $2,000 owed. Sounds too good to be true, and under ‘catagory’ it’s listed as “Misc” (as opposed to single family, commercial, etc). Not sure what to make of that.
Would a simple title search be enough to solve the mystery?
That should work. Could be a gas station, etc. If they only owe $2,000, they may be willing to take enough to get a new start, and you could still make a killing flipping. Good Luck