Category Archives: Finding Deals
Pre Foreclosures – 3 Reasons Why You Should Buy Them
You don’t need to be a marketing genius in order to get your phone ringing off the hook just find where the list is posted in your area. It will cost you less than a couple hundred dollars to get involved and you too can buy properties at a substantial discount and quickly sell the property for a big profit. Here are 3 reasons to profit from Pre-Foreclosures.
1) Motivated Sellers: A homeowner in foreclosure is the most motivated type of seller. You will find that they are the only sellers that have a true deadline. Other sellers will say they are motivated or want to move on but none of them have a deadline that they are not in complete control of. The bank is in control of setting the timeline and in most cases they are unwilling to adjust the deadline. Because of the deadline, the homeowner is more willing to make a decision before the bank makes the decision for them and they lose everything.
2) Motivated Lenders: Not only are there motivated sellers in this niche there are motivated lenders. The lenders that are foreclosing on these homeowners in foreclosure do not want to own the property. They are only interested in getting as much of their money back as possible. In many cases they are willing to take less than what the homeowner owes just to get rid of the bad loan. They will take less than what is owed and mark the mortgage paid in full. This type of sale is called a short sale and it is a valuable technique to understand with the number of properties out there that are upside down.
3) Solutions Provider: You have a choice when you market to homeowners in foreclosure. You can be a property buyer or you can be a total solutions provider. As a property buyer your primary goal is to purchase the property. As a total solutions provider, your primary goal is to save the house from foreclosure which is what 95% of the homeowners want anyway. Most of the options to save the house will be eliminated for most of these homeowners. For the ones you save be sure to get a testimonial letter and as for the rest just make sure that you make it a win-win situation and always make sure that they get some money and are happy with the result of the transaction.
Real estate and the pre-foreclosure niche is one of the greatest industries to profit from. The most important thing to recognize is what stage of the market are you in and what strategy to apply. Apply the right strategy at the right time and you will have massive profits coming into your life. I challenge you to get into the foreclosure niche and start claiming your chunks of cash.
How to Turn Dead Leads Into Profits
Have you ever heard the saying “the money is in the follow-up” and “most sales are made after three contacts.” They are both true, it doesn’t matter if you are a beginner or more experience in quick turn real estate, you need to have a follow-up system.
You probably already have some type of system but how effective is it? You may think that your current system is working just fine but what if I told you that you could increase your business by 20%, 50% or 200% with the proper follow-up system. Would you implement one? Here the basics of a follow-up system.
Lead capture: How do you capture your leads? Do you find the closest piece of scrap paper and scribble as much info as you can get? You should have a form to capture this information when a lead calls in.
You should have a similar form on your website. This form should collect the essential data such as name, address, multiple phone numbers, condition, the least amount they can accept, and marketing source. Whether you are using an answering service, a website, or answering the calls yourself, you need to have a lead capture process.
Lead tracking/management: Do you have a pile of papers in your office with old leads on them? Once you capture the basic info from a lead, you need a way to store and organize that information for later use. Later could mean three hours later when you go out to see the property or three days later. In either case, you need to know how to retrieve the data.
There are many contact management software systems available today. You can start with something as easy as Excel and create your own system or you can purchase Act or Goldmine. I would stay away from a very expensive software programs until you grow out of the ones mentioned above.
Act and Goldmine are low-cost systems that have the ability to store the captured data and set a follow-up action such as setting an appointment to visit a prospect, calling a prospect back, or sending a prospect a letter or postcard. You can also set it to give you a daily task list of what prospects you should be taking action with and what action you should take.
Follow-up/action: You look at the folder of old leads and think to yourself, I wonder if that prospect has sold their property. You should have a system in place so that you never have to think about that again because with the proper system you will already know the answer. With a contact management system your follow-up will be automatic. Every morning or night before, you can print a task list that will tell you who you need to call, visit, or send direct mail to.
The part I find the most challenging to do is entering the data into the system since I don’t spend most of my day at the computer. You have a few options: Carry a laptop or PDA and enter the data as it comes in, choose one time per day to enter a batch of information, or hire someone to enter the data. I prefer the last option since it frees me up to be out making offers and closing deals that I wouldn’t have been able to do without a good follow-up system.
Don’t let a penny of marketing go to waste because you lack a proper follow-up system. The best leads to follow up on will be the ones that are not that motivated yet but have equity, you captured their caller ID but they didn’t leave a message, appointment no-shows, or decided to try a Realtor first. There is a deal in all these situations and unless you have a system to follow up you’ll miss out on most those deals. How much more money will you make after implementing the proper follow-up system in your Quick Turn business?
