Wholesaling pre-foreclosures

Hey there, I’ve been trying out different lead sources for my direct mailing campaign. I can compile a free list of some pre-foreclosures, but I don’t want to waste time mailing them if it wouldn’t be fruitful. Anyone successfully wholesale pre-forclosure/pending auction houses? Any troubles you ran into? Was it worth it?

Thanks for the input guys.

Don’t waste your time mailing pre-foreclosures, as your primary target for deals.

I guess nobody’s telling you, but vacant and absentee owners with both equity and ‘problems’ are going to be a significantly more profitable source of deals than pre-foreclosures.

Not that you can’t make it work, but this is a resistant niche of prospects as a rule.

The ones who end up in default are generally the ones that can’t sell, because they don’t have enough equity to sell conventionally and pay an agent.

That said, you can make a LOT of money sifting for higher-end, nice, new houses in pre-foreclosure.

We brought the payments current on a half million dollar Sub2 deal in pre-foreclosure, for $9K, and resold the house with seller financing in place, for an $85K equity profit. We netted $40K in down payment money in about three week’s time.

So, if you’re gonna market pre-foreclosures, focus on higher end deals. Your marketing costs are the same regardless, so it just makes sense to work on bigger deals. Otherwise stick with high-equity, non-owner occupied houses.

That makes a lot of sense, I appreciate your input!