Preforclosures - - where?!?! how?!?!
Hey kids.
I've read the books....I spent time at the courthouse farming names/addresses, etc. I sent about 90 letters out and then 2 weeks later, about 90 more. I got maybe 2 calls (one spewing expletives)
Both were from people WAY too deep to even think about touching. (mortgaged up the wazoo)
I'm reading all of these posts talking about HUNDREDS of Pre-fores, and I'm sort of wondering what "the move" is? Would you mind walking me through your marketing of these names? Are your letters "harsh" (i.e. YOU'RE GOING TO LOSE YOUR HOUSE!)? I know that you need to be understanding & compassionate once you reach someone, but I'm not sure how to not waste my time with these things.
Any advice/scripts would be appreciated.
daja,
Glad to meet you.
Most of these people are baraged with letters from investors.
I just got an e-mail from Michaela (ATL GA), who posts here sometimes, she told me she has been knocking on the door. She relates most people welcome her in to talk about it. They even show her letters from all the other investors.
No Guts No Glory, can you knock on the door introduce yourself with some brilliantly worded script to make the house owners comfortable with you and invite you in.
Sounds like a logical way to go if you want to buy the houses.
John $Cash$ Locke
Daja,
I agree with John L.
Your best approach in dealing with folks in a preforeclosure is a personal approach. You can not make a deal unless you sell your self first.
You must be kind and considerate as financial problems in today's world can be the most stressful situation one can encounter.
Your customer needs to know WIIFM (What's in it for me), you already know WIIFY (What's in it for you). You have to sell the benefits of letting them trust you, your offer and your help.
1. Keeping a foreclosure off their credit (Makes it easier for them to buy again)
2. You will be fair with them
3. You care
Most investors approach these folks in a harsh manner and this they do not need. You need to help them with their burden, a piece of real estate they can not afford.
[addsig]
Thank you gentlemen, for your insight.
Does anyone (others welcome to chime in!) know of any specific scripts and where they might be available?
John & John,
let cut to the chase...I think what daja is trying to say is if you were to knock on the door, what might you say just to get in the door....
-Tony-
Tony,
Thanks for that "chime-in" YES! I'm still trying to find out how this foreclosure thing really happens! I'm reading in the other posts (i.e. the Bill Twyford Partnership...) the poster writes: o.k., first the owner agrees to move out - then you get a power of attorney and quit claim....PLEASE! It reminds me of that saying about the steps to becoming a millionaire....Step 1. Get a million dollars.
I haven't yet met a homeowner in preforeclosure that will gladly turn houses and rights over as easily as this all sounds. Yes, I'm the naysayer. I'm the skeptic. I DO believe one can easily make money in real estate, but I believe there's a real (slow-patient-hardworking) way and then there are the "method" ways. I'm starting to believe the "method ways"only make the "method-makers" rich.
Land Trusts. I've been combing the internet (beyond the few sites mentioned on TCI) and I can't find "squat" on land trusts (except in IL) I know, I know, they're legal in 50 states! But If noone has put them to the "legal test" in these states, then they may not hold up! Why aren't most real estate attorneys familiar with them? Because they haven't been tested! The argument is - I'm using the wrong attorneys - I shouldn't listen to my attorney if he doesn't know about Land Trusts? That approach suits one side of an argument, and is nothing more than "shady."
I have an open mind. I'll listen. Educate the newbies. Believe me -- I want there to be a magic, carefree way to buy & sell foreclosures. Maybe I'm short sighted (or blind) I ain't seein it.
DaJa:
Come now it will be all right!
Now regarding Land Trust-
First off They are Legal in 50 States TURE!
They are NOT recognized as anything other than a 'disguised-secured transaction instrument in TENNESSEE and LOUISIANA.
So I don't recommmend the Equity Hold or any other LT method in these States.
Secondly, WHAT STATE ARE YOU IN?
I could possibly help you to locate these for your State (if any); IF NOT:
I GUARANTEE you certainly WOULD NOT BE the FIRST (GUINEA PIG) to Record a LAND TRUST in Your State!
There is CASE LAW and other legal citings whhich SUPPORT LTs and I have 2 DOS acceleration attempts (Since 1987) by banks against LTs that BOTH FALILED.
Last of all: !!!RELAX!!!
I've been involved in REI since 1984. I've done extrmemly well and even lost my ASSets more than TWICE (OUCH!)
This business is all about LEARNIGN, GROWING, TESTING as INTELLIGENTLY, DILLIGENTLY, SAFELY and QUICKLY as possible!
I hope this helps!
DERRICK ALI
PS. See my article here on TCI on "the Careful Feeding & Handling of ATTORNEYS!"
[addsig]
Daja, if you need more info about land trusts, Mark Warda, an attorney has an excellent book on them, which includes blank forms. You can get it from amazon.com. Hope this helps!
Bob
daja
I do purchase property. I do foreclosures. there is no hard part to this.
I believe your question is "what do i say when i meet the people"
I do this often-most all of the deals i do now-THEY CALL ME . I prescreen by way of telling them what i do, which is take over their mortgage, make up the back payments, pay the taxes, pay the insurance. then simply ask "does this sound like a solution to your problem" they will say yes, no, or what do you mean.
yes-answers i am there before they have time to seat back down in front of the tv
no answers-i beat them back to the tv
what do you mean answers-i go over there and watch tv with them.
now what does all that mumbo jumbo mean-
if they say yes-you have a deal go do it
if they say no-don't waste another second
if they say what do you mean-they are not sure-get over there, take your paper work, visit whith them, allow them the time to trust you.
Now, we still have not answered your question. What did i say in the beginninng, before they where calling me-
I would knock on there door, introduce myself (not as a rei yet), tell them i heard thru the grape vine that their house may be for sale. ( they still have their dignity at this point) allow them time to speak ( you have to know when to shut up you can talk to much) they will tell you how they lost their job because of that sorry so and so or how their husband or wife left them etc. listen it builds trust in you!
then simply say "i may have a solution you see I am a realestate investor, i buy houses. (they have already told you how they are going to lose the house early because you listened) then ease into your sell just like you would if they called you.
does this always work YES always. Why because the 1st question is "I heard thru the grape vine that your house may be for sale."
answers
no who told you that-leave a card and say " I'm sorry to bother you sometimes in this business you get the wrong information, if you ever hear of a house for sale maybe you could give me a call"-they will call in a few months.
yes-you know what to do then
I hope this long winded beating around the bush helps
what about people that are in bankruptcy should you sign land trust and quit claim deeds with them are they even worth your time and if so explain the rationale behind it. Can you even sell a home from someone thats in bankruptcy.
KNOCK On DOORS!!!
Go out there with the intent on helping the homeowner(s). As far as what to say - tell the people you specialize in assisting homeowners that are having problems with their properties.
I am not sure what you have read on pre-foreclosures, but you have to check out Dwan & Sharon's material, they give you scripts on what to say in every phase.
Getting 2 responses from 90 letters is not bad. If the properties do not have equity, DO NOT walk away from the deal, there is a potential for a short sale - also covered in Dwan & Sharon's course. Short sales can make you a lot of money, it has for me.
If you are looking to make money in RE or any other venture, don't do what the rest do, be different - like knock on doors. I was scared at first but when people started inviting me in and telling me everrything (and more), I look forward to doing it. Like the Nike commercial says - Just Do It.
Foreclousres are at a record high...Get Busy and Help People!
I read about how to knock on doors, etc. and give a personal touch in trying to get a deal done. If I were in the other person's shoes, I'd sure appreciate it also.
Here's my question, I'm not clear on how to make an offer, an dpay all fees to take the property out of foreclosure (quickly assuming it's in a non-judicial state), I know it helps once this is done to file something in the local courthouse to protect yourself from someone else coming from behind you and offering a lower offer.
What is is called when you "assume" their mortgage quietly to avoid due on sale?
After the owner decides to do this, what contract does he sign? Once you make the payments, etc. how can you be sure the owner will still sell? If you've paid all of this "quietly" since you don't want to wake up a sleeping giant (mtge co.).
Thanks!