All Forum Posts by: David Wurzel

There's naysayers for everything under the sun.  (See any internet comment section.)  Everyone has their own motivation.  When done correctly, sub to is just as safe as anything else.

@Jerryll Noorden

I'm going to disagree with you and here's why:

Based on what I've read, and the documents submitted to the USPO, is that one approach is that people, when seeking to sell property will use the best and easiest found path created via the internet.  That, in essence, it is easier for people to come to you than for you to go to them. If you build it, they will come.   Reason:  most people seek information from the internet and Google in particular.

But, scientifically, it seems lacking.  What is the total pool of people actually seeking to sell?  How would conversions vs. overall seller population be determined?  How many potential sellers use other websites?  How many potential sellers looked at a website and then decided not to sell?  Let's go further and use your definition of MS.  How would it be known how many MS's there are?  How many are willing to sell below market vs those not willing?  These are questions that can't be answered.  Yet in order to quantify the results and/or success of what was built, I would think these are very important.

You said previously that if a person pulled 1000 foreclosures and made 500 deals (50/50) ratio that it would be sheer luck. Maybe. Yet, it's not like flipping a coin.

You state:" Not because a seller has been in foreclosure does it mean that by pulling the foreclosure list, that you will find motivated sellers!"

Yes, you would!  It would be based on the probability that within that sample pool the odds are greater that an MS will be found and that deals will be found.

Because odds are that a person being contacted who is in foreclosure, owns a property with utilities not active, or has a property for which they are the executor will probably want to do something, at some time, with said property. It's not simply random.

We find there are really only three types of potential client - the stubborn, the confused, and the arrogant.  And if any of them aren't motivated then it is our job to educate them which and lead to understanding the motivation.  How?  By educating them that in each situation there is legal liability if they do nothing.  Foreclosure - you lose the property, any equity, and will possibly become homeless.  Probate - taxes are still accruing, banks may still have a mortgage, and property needs insured.

To us  "A motivated seller is NOT someone who is willing to accept an offer below market value." We see 'motivated seller' and 'willing to accept an offer below market value' as two different things.  Anyone willing to accept below market has made a determination that is not necessarily based on motivation but multiple variables.  Time, effort, financial circumstances, etc. all play into why a person may wish to sell lower than market value.  In other words, "value" is simply what a person will take at any point in time for that property.

I believe there are two methods to convert property.  Reaching out or having someone reach out to you.  They both have their pros and cons.  I see one as active (reaching out) and one as passive (being reached out to).  The active approach I feel can easily be quantified and tracked.  A passive approach would be to place a website on the vast ocean of the internet to try and attract.  Yes, you can optimize the website for searches.  But how are you quanifying and tracking?   I understand the approach that leans heavily on SEO optimization so potential clients can easily find a company.  But, it's still just a voice among millions trying to attract a potential client even if it is the easiest to find.

Finally, getting back to the example conversion.  eg. If I pulled a list of 1000 foreclosures, how many deals are you going to make from these 1000 people in preforeclosure?

If the answer is 1, that is 0.1% conversion= BAD

If the answer is 10, that is a 1% conversion = BAD

Why?  Why is any of that bad?  It's not.  Because there is not enough information to make that decision.  If $100,000 is made on that one deal and it cost $100 to aquire then it's not bad.  In fact, if the same holds true then 10 deals are even better.

I would ask this.  As previously mentioned - What is the statistical analysis that would make one lean more heavily on passive marketing as opposed to active marketing?  (Forgive my descriptions, they are just my way of defining the concepts.)

 This is @Jacopo Iasiello's deal.

 Agreed.  There are many working parts to a probate.  And the least is having just one heir or just getting a PR appointed.  Our rule of thumb is anything over 3-4 heirs and you're better off trying to herd cats.

 I'll run this by our probate attorney for feedback.  If correct it elimates a few hurdles.  One thing we've realized about probates is every single one is unique.

@Mike Hern
@Jacopo Iasiello

I think Jacopo is on the right track.  I just think he has a few cart-before-the-horse issues that all in all are not hard to fix.  And, of course, we have really only replied to the issues involving probate and not the deal as a whole (numbers and such).

btw - Standard disclaimer that any information has been provided as opinion and I am not an attorney (nor do I play one on TV) and am in no way providing legal advice in any such capacity.  Seek legal advice from a licensed attorney - not the internet.  ( I can provide a referral.)  

 Jerry, I think you are a genius.  A god (if you will).  I shall avoid blasphemy and not use the big "G".  But probate is a different animal.

Think about probate.  A relative (more than likely) has passed and real estate remains as part of their estate.  The relative wants nothing to do with it but...there it is.

The FIRST thing a person thinks about may be going online but they're going to be looking for an attorney, not a person advertising that they buy houses.

Most people are absolutely in the dark about how to deal with probate and how to legally dispose of the real estate they've inherited.  Motivation is not always highly involved because they're not liable for anything.  Their name is not on a mortgage.  They're not obligated for taxes or insurance or liens or really anything.  Their back is not against a wall.

The only time I've seen a slightly motivated probate is when it is in foreclosure and an heir is living in the property or may want to keep it for sentimental or other reasons adn they don't want to lose the property to the bank.  That's not all that often.  But...when it does happen...then they have the option to seek out as-is buyers who can close quickly.

 If it's been condemned then I'd be checking municipal liens that could be racking up on a day to day basis.  In Florida they do this as a legalized way to steal property or strip equity.  (My opinion)  Otherwise the daughter is the owner and if she won't budge then move on or just wait for either the foreclosure or tax deed auction.

 If you will be pursing these then subscribe to Ancestry.com and invest in a good skip trace provider once your research is complete using Ancestry.  You WILL find an heir.  Once found obtain a good probate attorney to appoint that heir as Personal Representative (Executor) who can then legally sell the property.

 You should have had one of the heirs appointed as PR and then done a partition action.  Because there's no way you're going to get 14 people to agree on anything.