Use Direct Mail to Find Foreclosure Profits
Saturday, January 3rd, 2009
Adem Hamidovic asked:
Being a foreclosure investor can be extremely profitable. In fact, some people have built a business solely around investing in foreclosed homes. Serious investors can see the value in seeking out pre-foreclosures. This is when they contact possible default home owners before their property is foreclosed. This used to be a difficult and risky process but in recent years it has become easier due to the internet. Finding the names of pre-foreclosure home owners is becoming more accessible to investors.
In the days before the internet, foreclosure investors had to go to a county court house in order to try and discover possible default mortgages. In the court house they had to sort through thousands of home listings using microfiche, in the hope that a small percentage would be pre-foreclosure properties. This form of searching is now outdated and cumbersome and has been replaced by the more accessible and faster internet method of searching.
Finding mortgage lists online is easy. You can find foreclosure forums where thousands of members discuss foreclosures 24 hours per day, 7 days per week. Posting a message on a popular forum requesting mortgage lists can yield you may replies. Many members will introduce you to some well priced mortgage lists that are reliable and trusted. Although you can search for mortgage lists yourself online, you must watch out for bogus lists and rip offs. The best way to find reliable lists is to ask those who are actively involved in foreclosure investing.
The next step after you have obtained a default mortgage list is to contact the people using direct mail methods (by writing a letter). The letter should be professionally written and well worded. Getting a draft written by a professional is a good idea as you can use it as a base for all your letters. There are also some example preformatted letters available online. Make sure your letter clearly explains your reasons for contacting the property owners or else they are likely to discard it as junk mail.
One tactic that helps get your letters read is by writing them by hand. Handwritten letters are rare these days, as almost all mail is written on a computer and then printed off. Nothing stands out like a handwritten letter, so if you have neat handwriting and don’t mind spending some time at the kitchen table every evening, writing your letters by hand can really help get your message read.
Many home owners will not initially be interested in your offer. By including a business card with contact details with the letter, you provide a way for the owners to contact you once they have thought about your proposal. Your first mail outs may have a low response rate, but if you keep the contact consistent, eventually you should find a deal. Make sure you leave a number for either a voicemail box or a cell phone - you don’t know these people yet and you don’t want them calling your house at inconvenient hours.
Direct mail is a wonderful way of finding and securing pre-foreclosure properties.
Kathleen
Being a foreclosure investor can be extremely profitable. In fact, some people have built a business solely around investing in foreclosed homes. Serious investors can see the value in seeking out pre-foreclosures. This is when they contact possible default home owners before their property is foreclosed. This used to be a difficult and risky process but in recent years it has become easier due to the internet. Finding the names of pre-foreclosure home owners is becoming more accessible to investors.
In the days before the internet, foreclosure investors had to go to a county court house in order to try and discover possible default mortgages. In the court house they had to sort through thousands of home listings using microfiche, in the hope that a small percentage would be pre-foreclosure properties. This form of searching is now outdated and cumbersome and has been replaced by the more accessible and faster internet method of searching.
Finding mortgage lists online is easy. You can find foreclosure forums where thousands of members discuss foreclosures 24 hours per day, 7 days per week. Posting a message on a popular forum requesting mortgage lists can yield you may replies. Many members will introduce you to some well priced mortgage lists that are reliable and trusted. Although you can search for mortgage lists yourself online, you must watch out for bogus lists and rip offs. The best way to find reliable lists is to ask those who are actively involved in foreclosure investing.
The next step after you have obtained a default mortgage list is to contact the people using direct mail methods (by writing a letter). The letter should be professionally written and well worded. Getting a draft written by a professional is a good idea as you can use it as a base for all your letters. There are also some example preformatted letters available online. Make sure your letter clearly explains your reasons for contacting the property owners or else they are likely to discard it as junk mail.
One tactic that helps get your letters read is by writing them by hand. Handwritten letters are rare these days, as almost all mail is written on a computer and then printed off. Nothing stands out like a handwritten letter, so if you have neat handwriting and don’t mind spending some time at the kitchen table every evening, writing your letters by hand can really help get your message read.
Many home owners will not initially be interested in your offer. By including a business card with contact details with the letter, you provide a way for the owners to contact you once they have thought about your proposal. Your first mail outs may have a low response rate, but if you keep the contact consistent, eventually you should find a deal. Make sure you leave a number for either a voicemail box or a cell phone - you don’t know these people yet and you don’t want them calling your house at inconvenient hours.
Direct mail is a wonderful way of finding and securing pre-foreclosure properties.
Kathleen