Pre-foreclosures make great real estate investment deals and are a constant business you should be working. Follow the basic steps below and get started working the pre-foreclosure business. It’s all about helping people!
1) Research Pre-foreclosure leads using the REIPro software. You can also search the Auction leads as well. These homes are in pre-foreclosure, they just have an auction date scheduled so you may need to work these sooner rather than later depending on the actual auction date. Any auction date within 1 week should be avoided, as this will not leave us enough time to work.
2) You should filter the leads that have at least 20% LTV (Loan to value) as these leads have equity in them.
3) Now select all leads, create a direct mail campaign and move them to direct mail.
4) Sending direct mail letters or postcards is the best way to make contact with the owner since calling them will be difficult. Most pre-foreclosure sellers are screening their calls, which makes it hard to contact them by phone. Having them call you from either a letter or post card is the best way.
5) Once you receive calls, go through step 2 in the software and ask the following questions.
Some of the most important questions to ask are:
a. Find out their situation?
b. How much are they behind in payments?
c. Loan balance?
d. Does the home need repairs?
e. Are the taxes current?
f. Do they still live in the home? Is it vacant?
6) Once you have this information, you’ll need to research the potential value of the home using REIPro and running comps.
7) Schedule a time to look at the property!
Chris Goff 