Success in Pre-Foreclosure Niche?

Question

Hello BP,I know in today's market pre-foreclosure niche is waaaay saturated (Bay Area Market). I've heard from a podcast somewhere that an owner in pre-foreclosure had over 30 letters from investors in ONE WEEK. I'm looking to expand my marketing (other than direct mail) and target this particular niche. I'm brainstorming creative ways to target this niche instead of DM to stand out.Bottom line, my question is what is the process in a pre-foreclosure deal process as a wholesaler? Is there a hiccup in between I should watch out for or should be aware of? ps. I'm thinking of door knocking!Thanks Bp,

Jay Hinrichs · Answer

@Ethan Summers that was my entire point... desperation time is 72 hours or so before they are going to lose it.... 90% of the ones I bought were 48 hours .. that's when reality sets in.sending letters within days of the initial NOD ( notice of default is what we call them here) your just one of hundreds.. so its just slinging mud on the wall) and with default a fraction of what they were 10 years ago... not as many fish in the barrel. so pretty tough if not impossible to wholesale these IE make finders fees in the normal sense of wholesaling.... by the time you get your e mail blast out buyer does a drive by or wants to inspect the property.. checks title etc. property is gone its sold or someone else beat you too it.. having contract with an owner won't cut it.. they will take the first dollars that comes there way in desperation time contract forget it about it... I did this often some wholesaler has it tied up can't perform they are just about to lose the house.. kick wholesaler to the curb and I close on it. And you can't blame the owner.. the wholesaler is just looking out for the wholesaler and does not really have the means to pull the trigger and solve the problem without someone elses cash.. IE why so many pre foreclosure laws went into effect.. Many Many people lost homes they should not of believing in the Empty pockets wholesaler BS pitch.@Sean C. this is a very easy answer.. how do you raise capital if you don't have it.. Well you do that by reputation and experience in the industry.. pretty tough for those that have no real estate track record to do this.. Mine was 20 years as a successful real estate broker and Mortgage banker with 1000 transactions under my belt.. I knew what I was doing and the investors know it.At the end of the day west coast foreclosure buyers need a minimum of 5,000,000 if your going to make a business out of it.. and 10 mil is better.. and then lending facilities so that when you paid cash you could refi out or tag your credit line in the matter of days.. not a month or more for standard lending.

Russ Scheider · Answer

@Sean C. good information and advice from @Jay Hinrichs and @Ethan Summers. I know both of these guys and they are solid. I have 2 friends who are successful with Pre-foreclosures in California. Double-closing and assignments both work, but you REALLY have to have your act together, because there is no time in these deals. Hit me up if you would like an introduction to Luis or Richard, my friends in LA and Merced, CA, respectively.

Jay Hinrichs · Answer

Account Closed Ok does not look like its the warriors night.easy. .you have a sale date on the NOD.. you then check with the trustee for final date.. they tell you .. you then show up and bid..

Jay Hinrichs · Answer

Account Closed well let me see if I can enlighten away while I watch the warriors in over time.be right back to you

Jay Hinrichs · Answer

there are laws that must be adhered to with this.. make sure you study those.. same in Oregon and Washington.get the Property Radar app. its very good for thisand yes door knock Is the only way to do this in my mind.when I did pre foreclosure work prior to the equity skimming laws being enacted in ORegon.. I had 3 teams of two door knock every NOD in the 4 county area.We only door knocked one week before they were going to lose the property.. and the best deals were 2 to 3 days before.. this is motivated folks. before that they are still waiting for their rich uncle to bail them out.and folks in our market will receive no less than 100 to 150 direct mail piece during the process.with many saying the exact same thing.. does not take a brain surgeon to realize the letters are not unique LOLMost folks could not compete with us.. as we could redeem day before many times.

Jay Hinrichs · Answer

Account Closed FOR SURE its a business chasing foreclosures.. its tough being a one man band.. I had an employee that did nothing but follow all the NOD s in my market POrtlandia .. it was a full time job.. taking down the postponements.. the BKs the removals .. then popping back up.its a job really.. its virtually impossible to just hone in on one or two props.. you will get frustrated real fast..

Account Closed · Answer

Its not looking good for warriors tonight. I always ran into delays or extension after extension when I tried to do the follow ups. Seems as if I always got the run around. Time to be more persistent

Account Closed · Answer

How would you know the exact day or week there were getting the boot? Please enlighten me with some details. Thanks

Kirk H. · Answer

Foreclosures are difficult in Missouri where the bank can foreclose 30 days after the notice is mailed. You got to have some hustle. most foreclosure sites would be posting them 2 days before the auction. Best just to learn about auctions and go to them in Missouri. Any one had luck in MO with foreclosures? I've seen the good houses literally be auctioned off on day 30. the less saleable houses take slightly longer.

Ethan Summers · Answer

@Sean C.Some advice from a wholesaler in Charleston SC who has moved a two pre foreclosures in two of the hottest areas in my market. You will need to wait until it is desperation time for the seller and just build a rapport with some cold calling until its time for them to sell! Remember volume is key.