What is your best strategy for buying Pre-foreclosures?


#1

It seems that all Pre-foreclosures fall into one of two catagories: 1) Not listed, 2) Listed - usually as a short sale. What is your best strategy for approaching non-listed, preforeclosure homeowners about selling their home?


#2

There’s the million dollar question. A number of gurus will tell you their one approach is best. But having seen a number of folks do quite well, I can say there are many approaches that work, and it really depends on your personal skills and preferences. Signs on the highway work, direct mail works, door knocking works, following bk’d trustee sales works, skip tracing moved owners works, and the list goes on and on.
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Things you should consider when figuring the best approach for you: a) are you comfortable talking to people in financial distress, b) are you good at quickly building rapport and trust with folks you’ve never met, c) are you better communicator in person, on the phone, or in writing, d) will you do deals personally, or do expect to hire people, e) do you have sufficient capital to pay cash in full, or will you need to buy subject to existing loans (little or no cash out of pocket), f) are you good with computers and doing research, g) how much time do you plan to commit, etc.
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All of these things and more will determine the right path for you. Beware of any so-called guru that is telling you how to do this business without first taking into account your personal strengths and weaknesses. One size does not fit all.


#3

Thanks, Sean. Great feedback!