Posted by Gayle - CA on September 25, 2004 at 19:15:51:
Hmmm, don’t get many hurricanes here in CA–maybe I’ll investigate where the next earthquake is predicted to hit and make some offers in that neighborhood…(I can play that game too)…
Foreclosure Q. - What Can I Provide? - Posted by Joe
Posted by Joe on September 24, 2004 at 16:06:39:
In my area, there are tons of investors hitting on preforeclosures. Out of these many investors, what are the factors which are going to induce a seller to choose one out of the pack (such as me)?
This seems sort of like “The Average Joe,” where one person can choose from many (with the investors being the Joe’s). How do I become “above average?”
I’ve read Joe Kaiser, and he stresses getting to them early. I did a test and went down to the recorder’s office, found some, and then discovered that I could beat the list that comes out by 24 hours or so, on the average. That represents a lot of time, and I don’t feel it’s worth it for such a small jump, especially when I receive the same info for free shortly afterwards, with others doing all of the work, which would take me hours.
I am taking an aggressive approach, and am leaving the comort zone of my home office and heading into the streets, knocking on doors. I’m asking them directly “is this house facing foreclosure?” and I’m telling them directly that I want to buy it.
I’ve only done a few so far, because my computer broke down last week, and I’ve had to devote a lot of time to fixing the situtation. However, I like being out there talking to them.
So my questions are:
-
What about the “getting to them early” aspect I mentioned above? That will cut down on my volume of personal visits, and is time consurming. Is that going to be worth it (I’m guessing not)?
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I think this is a MORE important question: Is there some sort of special benefit I can offer them? Sound business and sales philosophies revolve around giving people a lot, making them feel they’re receiving a lot, and offering them good, solid benefits for choosing “you.”
How can I provide that, give them a free trip to Hawaii or something as an incentive to sell me their house? Less drastically, dinner at a steakhouse? Helping them find a new place to rent, or whatever?
Need some input, thanks
Re: Foreclosure Q. - What Can I Provide? - Posted by Tom-FL
Posted by Tom-FL on September 25, 2004 at 18:44:34:
Being way too lazy to type all this over again, I’ll just exerpt my post at:
http://www.creonline.com/wwwboard/messages/47305.html
Some investors say the thing to do is get there first. Other say to wait till the sale is imminent. The logic being that the closer to sale, the more likely they are to wake up.
I think you should start after them early and make repeat contacts till one of two things happen. The first is they no longer own the house. This could be that they sold it privately, or the court sold it for them, either to the lender or a buyer at auction. The second is that the case is dismissed, usually because they made a deal or cured the default. Don’t give up on these. Instead of mailing/phoning/knocking once a week or ten days, now you scale back to several times a year. Then you are pitching them when no one else is, and you may catch them before an action is filed.
Make no mistake. If they’ve been in FC before, the chances of them being in FC again are pretty high. Most forebearance deals are ill fated from the beginning. Really, if they couldn’t keep up with the $800 payment, how are they going to manage $1100 or $1200 till the arrearages are made up? The answer is, they’re not! So when you see a FC case dismissed, don’t be surprised when it gets refiled in less than a year. If you’ve taken time to “farm” them, then you will be the first one they call when reality hits.
The thing is that they should be well familiar with your marketing materials by now and you should stand out from the crowd. Keep your stuff consistant so they recognise it. They should feel like the “know” you.
Re: Foreclosure Q. - What Can I Provide? - Posted by whyK-CA
Posted by whyK-CA on September 25, 2004 at 12:40:22:
Hi Joe.
I?fm new (disclaimer) but here is my opinion based on what I saw in the last few months.
I think the time seller has on their side and the market they are in has a lot to do with the best time to visit. I?fm in the area the market is hot and the sellers has 111 days before the auction. In the beginning of this time frame, many folks are still just thinking about their options. They know they can sell quickly any time once they make up their mind. If the time frame is a lot shorter in your states than mine, then this is probably different story.
I think the best way to find out is by testing in YOUR market. You can visit them different timing and see their response and decide what is the best use of your time.
Hope this helps.
whyK-CA
Re: Foreclosure Q. - What Can I Provide? - Posted by jasonrei
Posted by jasonrei on September 25, 2004 at 09:35:14:
Depends on how serious you are about it.
Be the first to mail them a letter. Be the first to knock on their door. Be the guy they want to call when they decide they want to sell. Stay in front of them.
I’ve only done a few preforeclosures. I’ll tell you about the ones where other investors were involved:
Got one because (even though 2 other buyers had offers in before me) I was the one the seller believed would actually perform. I made them believe I was a doer. Got two because they saw my advertisements multiple times (that is, I got 2 under contract, but one fell through cuz the balance on the loan was much higher than expected). Got two because I offered the most (one of those fell thru, too). Got one because she called on other mailers, but I was the first one to pick up the phone- the others had a recorder pick up or just let the phone ring.
Re: Foreclosure Q. - What Can I Provide? - Posted by IA Jeff
Posted by IA Jeff on September 25, 2004 at 08:25:50:
I was marketing to a large market a couple states away for a few months to see what could happen. I got a couple calls that said they kept my letter because when it showed up, it was the only thing in the mailbox that day (I was probably a 2 to 4 weeks late).
The moral I got out of it was, that if you can’t beat the rush then come after the rush…but don’t be in the rush. One seller said she had her mail box litterally stuffed full for about a week after the notice of default came out.
I know I missed deals because I wasn’t there first but, there are deals to be had when batting “clean-up” as well IMHO.
Jeff
Re: Foreclosure Q. - What Can I Provide? - Posted by Jack
Posted by Jack on September 24, 2004 at 18:22:51:
$$$$$$$
Re: Foreclosure Q. - What Can I Provide? - Posted by Jim FL
Posted by Jim FL on September 24, 2004 at 17:03:47:
Joe,
I’ll throw in my two cents here.
To me, the idea of getting to the sellers first, or better yet, having sellers contact you first is very important.
I cannot say that I market to the ‘pre-foreclosure market’ per say.
However, most of the housse I buy either are, were, or will be in some stage of default, had I not come along, so I do work with them sort of.
I just don’t mail out to them, or check lists.
Instead, I market consistently, all year long.
My message is out there for sellers to see, and contact me when they are ready.
As far as what type of ‘special benefit’ I can offer sellers.
Basically what I offer is speed for solving problems, along with confidence, and the right sympathetic attitude, mixed with VERY straight forward approach.
I’d say getting before sellers in need, face to face, and having a conversation with them prior to other investors will help you get better, and higher volume of deals.
Let me give you an example.
I purchased a house recently, subject to.
Sellers were behind, but reinstatement was possible, and bought me a nice chunk of equity.
I signed the deal, recorded the deed, and paid the reinstatement amount to the lender on a Friday.
Well, the next monday, since the lenders attorney had already been told to file, a Lis Pendens was prepared and filed the next day.
Apparently the title search the lenders attorney did found my newly recorded deed, so the trust and its address were listed in the Lis Pendens.
The reinstatement was posted to the account and the case dismissed that same week, so all was well.
I know for a fact that there are AT LEAST 10 local REI’s sending mailers, and about 5 who do the door-to-door thing.
Why?
You guessed it.
Because I got the mailers at the trust mailing address, and had a few knock at the house while I was there cleaning and hauling out trash.
This has happened more than once.
It felt nice to me, knowing that by a mere few days, I had signed the deal, while others waited for a list.
Sure, these other local REI’s will and do get deals.
I just like to get to them first.
Besides, sellers calling me already know they want to sell…makes life easier, IMHO.
So, sorry to ramble, just my two cents on your questions.
Getting to sellers before others…yup, well worth the money spent to market hard.
Take care and good luck,
Jim FL
Re: Foreclosure Q. - What Can I Provide? - Posted by Gayle
Posted by Gayle on September 24, 2004 at 18:47:42:
Jim,
May I ask what method of advertising all year long that you use? You mentioned you don’t mail to them or use lists–just curious! Thanks!
Gayle
California
Re: Foreclosure Q. - What Can I Provide? - Posted by Jerry
Posted by Jerry on September 25, 2004 at 03:07:45:
Jim uses a unique marketing method. He waits for a hurricane to pass over, and throws a box full of business cards into the air. In no time the cards are distributed over several counties, and in come the calls.