Here are the headwinds you would be dealing with if you dive into surplus funds.
1) unclaimed money 💴 tactic have been used by, many scammers taking money up front in return for helping owner claim the surplus funds. Such scammers are referred as fraudsters...
What does it mean for legitimate surplus funds recovery company?
It means facing headwinds in attempting to convince home owners that there is really surplus money left over for their property.
Many homeowners been trained by the internet to ignore any letters or emails or phone calls from anyone calling and offering you free money.
The mentality is already formed in their brain.... that it’s too good to be true.... hence even if you are legitimate company.... you can still face headwinds.... when reaching out to such people.
2) Some older folks have dimensia and may very well sign your contract, but also sign the very same contract with other excess money finders..... leaving you in uphill battle fighting for money... that you would less likely to receive.
3) many surplus funds may appear to have money.... but when you look super deep into many of such claims... you will see that in reality there is a lien on the property, or 2nd mortgages or multiple people.... who funds belong too....
Which means there is really no surplus funds for many of the claims, even though the lead website tell you there are surplus funds.
4) many folks on the Internet advise homeowners that they can get their funds simply by filling out several simple forms and claiming money yourself without having to pay any insane fees to any finders.
However if homeowner is not capable in filling out these form they shouldn’t pay more then 10 to 20 percent to finders who will assist in claiming funds.
10 to 20 percent fees don’t exactly cover the costs of your skip tracing efforts, processors fee or attorney fee.
You need at least 45 percent to make it consistent (depending on the property value).
Some states cap the percentage to 10 percent. Meaning you can’t get more than 10 percent....
Some states may not have enough surplus funds.
The ones that do have a lot is New York and California.
Now I am not a guru, I haven’t done surplus fund searches.
I prefer personally learning and coaching about multi family commercial REI inter mixed with wholesailing commercial multi family apartment buildings...
Or even wholesailing regular houses..., as it goes for surplus funds...
If you have time to kill and willing to take risk.... doing it consistently.... facing the headwinds.... then go for it....
Then let me know how it goes. This is indeed a legit strategy, but if you don’t put work into it.... then like with everything else.... it can fail...
Key is calling these homeowners consistently and following up.
As it goes going to auctions and recording how much property sold for, writing it down and chasing homeowner right away....
Indeed gives you bigger chance.... of striking a deal and signing owner under contract vs looking only at online lists...
Look for probate properties.... and look for foreclosure properties.
You don’t need to be super smart to make money in surplus funds, but you will need to know.... how to skip trace deals and send out letters, cold calling people and pivoting them.