Letter posted to John Micheal

[jmsafier]

This is a letter posted in response to answer from John Michaels. He thought it would be good to post so here goes

John

What exactly do you mean by FSBO. (Besides for sale by owner). Do you mean all ads in paper not by agency or even motivated sellers who are FSBO. I Think the more I'm l;earning the more confused I'm getting.

One of my biggest issues in life is that I am not a very good communicator. That doesn't mean I will let it stop me. So when you write people person, its scary. I am a very good person, and I listen to people and their needs intently. but I have trouble selling myself. What can I say. I have a low self esteem. But THAT WILL NOT STOP ME. I belong to two preforeclosure listings in NJ. I have a realtor to do comps for me. However, prices here are astronomical. At auction sales, nothing is discounted. If $400,000 is owed on a house the initial bid from the lender is $400,000.

Enough of me sounding doubtful. What would you say is the best exit strategy for a preforeclosure. From what I read a "Subject to" would be but I'm wondering can you do a lease option. And how would you handle the back payments would you just take it off the purchase price?

I was thinking of sending mailings to people on the preforeclosure lists and then if they show an interest then meet. he locations that would be more receptive are several hours away from here. I just dont have time to do cold calls. I know I sound very negative, but I'm not I intend this to work

Thanks for your help


Jeff S

[JoefromPhilly]

If you are going to mail stuff to the preforeclosure lists, you need to know that you are just one of many who are mailing to that list. In order for your letter to stand out, you need to make some sort of enticing offer. I would also suggest that instead of sending just a business card that you stick it on to one of those peel 'n stick business card magnets, so it gets stuck on perhaps their refrigerator. Don't use something like "STOP FORECLOSURE" as that can be too embarrassing.

Someone one suggested that you make up video tapes of your "pitch" and send them out. You can perhaps make up a video CD and send that out to your list. It is cheaper than mailing a video tape, and you can really try to convince the person that you are not just trying to take away their equity.

Just my 2 cents advice.

- Joe

[Just Information]

First of all this is what Jeff is talking about

Hi Jeff S,
>
> You will find that FSBO type properties to be the most difficult
> area to find a motivated seller as an investor.
>
> Your preforeclosure property at least in my case has been one of
> the most lucrative and rewarding types of investing. Does require
> a strong knowledge base, strong people skills and knowing multiple
> strategies in dealing with foreclosures.
>
> I have found that researching notice of defaults, mailings and
> door knocking to produce the best results with this type of market.
>
> Sounds like you are taking some great steps in the education
> process! I would suggest joining a local REI club in your area.
>
> Take care,
>
>
> John Michael

[Just Information]

Welcome Jeff to the magic bullets!

You asked what do I mean by FSBO. What I mean is exactly what the term means "For Sale By Owner" When a property owner is selling their property without the use of a professional. For example: Using a Realtor or Broker to sell the property on their behalf.

This is one of the least productive areas for real estate investors to pursue! Now I'm not saying that a deal can not be found but for an investor one needs to seek out motivated sellers - Your most willing and motivated sellers are those who are facing financial distress and or must move the property like yesterday.

You state that you are not a vary good communicator - since this is an area that you know you are weak in you will have to develop this skill in an effort to over come this weakness as communication skills is one of the most important factors in your ability to become a success in the game of real estate investing.

All the courses of real estate investing will serve you no purpose until you learn to become a good communicator.

You have shared with me all your studies in REI and that's a great step starting out, but I would suggest going back to the books and restudy before you start your REI business as you are missing several key eliminates in the process of investing.

You must know your market area

You must understand your market area

You need to know the in's and out's of what form of investing you plan to do

You said they do not discount properties at auction, I'm going to assume you are talking about a foreclosure auction sale. Why would you think they would discount the property at sale?

You asked what would you say is the best exit strategy for a preforeclosure. Your best exit strategy is to sell the property for profit.

Subject to is not an exit strategy it is a strategy to acquire property. http://www.magicbullets.com/forum/showthread.php?t=371

I have covered lease option on this forum at: http://www.magicbullets.com/forum/showthread.php?t=435

You said I was thinking of sending mailings to people on the preforeclosure lists and then if they show an interest then meet. The locations that would be more receptive are several hours away from here.

How do you know locations hours away from your location will be more receptive?

You said you just dont have time to do cold calls.

If that is so my friend you do not have the time to do this business see http://www.magicbullets.com/forum/showthread.php?t=269

[jmsafier]

John

How does one know a market area?

When I mention cold calling, I meant actually calling people without any prior communication like mailing, etc. I work a nine hour day, so my time is limited, and Im wondering the best use of my time. The schedule that you sent me a link to sounds great. Thanks

Jeff

[BCC]

I am looking to implement a systematic direct mail program to generate more motivated sellers calling me. In the past I have mailed a single letter to the 300+ preforeclosure listings in my county as soon as they hit the legal paper. I get some calls from this effort but it appears to be discards from other investors. I doorknock some of these but with no success so far. There is a friend of mine who is a doorknocking madman but with only frustrating experiences so far.

I am considering marketing programs from:
Ben Innes-Ker
David Whisnant
Scott Rister (pretty expensive)

I've also heard good things about a contact management software called Goldmine but I'm told its a bear to set up and get going.

If anyone has experience with any of these or any other recommendations I'd appreciate your comments. The online chat the other night was helpful.

Thanks,
Bernard

[Just Information]

John

How does one know a market area?

When I mention cold calling, I meant actually calling people without any prior communication like mailing, etc. I work a nine hour day, so my time is limited, and Im wondering the best use of my time. The schedule that you sent me a link to sounds great. Thanks

Jeff

To know your market area you need to do research with realtors, REI associations, Landlord associations and realtor.com provides tools to research your market area.

[Just Information]

I am looking to implement a systematic direct mail program to generate more motivated sellers calling me. In the past I have mailed a single letter to the 300+ preforeclosure listings in my county as soon as they hit the legal paper. I get some calls from this effort but it appears to be discards from other investors. I doorknock some of these but with no success so far. There is a friend of mine who is a doorknocking madman but with only frustrating experiences so far.

I am considering marketing programs from:
Ben Innes-Ker
David Whisnant
Scott Rister (pretty expensive)

I've also heard good things about a contact management software called Goldmine but I'm told its a bear to set up and get going.

If anyone has experience with any of these or any other recommendations I'd appreciate your comments. The online chat the other night was helpful.

Thanks,
Bernard

Sounds like your efforts have to do with your approach with property owners - need details?