Question Regarding Sellers
I am beginning to farm houses and just wondered why wouldn't sellers just pick up the phone and contact the people who advertise "we buy houses" and the like for themselves. What is their incentive to do a contract with a dealer? Same for people in pre-foreclosure why don't they just contact these buyers directly?
Just wondering - Any opinion would be helpful. 
The people in foreclosure feel that a magic wand will get them out of their troubles or the lender will put all the payments and the end of the loan. Unfortunately lenders don't so, people keep hoping and at the very last minute they file bankruptcy because some attorney told them they can stay in their home and not make any payments on it. You need motivated people!
[addsig]
People have pride. Some feel calling on signs is tacky. Others may think that an ad in the paper is sophisticated. I just depends on the owners. I get doctors calling me and don't work with me cause I'm an investor. people are funny. just deal with people who want to deal with you.
There's different issues here.
Sometimes, when people see what they are going to net by selling through a Realtor, they decide to do it themselves. Enter the FSBO phase. Once they see that this is no cake-walk they are ready to try investors.
Defaultees are a different story. They are in denial. They have been promised by a friend, a relative, an employer,a lender that they will be helped. When these fail and they see that the end is in sight they flee, deal with an investor, or watch it sell at the courthouse steps. Oh, yes BK is often used as a delaying tactic, but it's not a remedy.
The one thing that took me years to understand is the difference between someone who wants to sell and someone who needs to sell.