Can you make $10,000 per month knocking on doors in your neighborhood with a simple script of exactly what to say to pre-foreclosures? Yes. That’s exactly what I am about to share with you in this video.
But first, please go ahead and like, share and subscribe to this channel and I will be sharing more videos around this topic.
Also, use the comment area below to let me know if there is anything specific you want me to cover in the next video.
We are talking about pre-foreclosure in real estate and how to make $10,000 per month with it. What the heck is pre-foreclosure?
Pre-foreclosure is the first phase of a legal proceeding that ultimately can conclude in a property being repossessed from a defaulted mortgage loan borrower.
Default means that the monthly mortgage payments are stopped due to some type of life crisis.
The lender of the mortgage loan files a notice of default on the property in pre-foreclosure because the borrowing owner exceeds the contractual terms for delinquent payments.
That’s typically about 60-90 days. It depends on what state the subject property is located.
If we are lucky enough to have you as a subscriber on this platform, you know we talk a lot about a real estate money making strategy called wholesale real estate where you do not need cash for capital, good credit, experience or license to make money.
We simply use marketing campaigns to find deeply discounted properties, lock them up under a purchase contract and sell the equitable rights in the contract to an end buyer who is typically an investor who wants to fix it up and resell for profits.
Based on my personal experience, you can make up to $82,000 from one single deal, average $15,000 to $30,000 and make as low as nothing on a deal.
“Making nothing” has happened to me once ever since 2005 because of unforeseen circumstances.
Wholesale real estate as a 5 stages process from data to deal starts with… you guessed it… DATA.
Precisely, we are talking about data of distressed homeowners. One of such types of data is pre-foreclosure.
It’s safe to assume that a home listed at the county government building on the public pre-foreclosure list represents a nightmare to the homeowner; hence the phrase “distressed homeowner”.
Access to pre-foreclosure data also represents the beginning of fortunes for anyone who knows how to turn the concept of “data to deals” to a system that can be used, rinse and repeat over and over again.
This is a money making strategy that I stumbled into while I was in the middle of my masters degree program (Engineering Management) back in 2005.
I went on to turn it into a system (which included a script) that made me so much money before the market crash in 2008. At the time, I didn’t appreciate the power of the scripts and the system I had created… not until another 6 years (2014).
At the time of recording this, there is a recession looming that has not been officially announced yet but the reality is that the latest report from the Bureau of Labor and Statistics reports a 9.1% inflation rate — the highest since 1981.
Because of this system that has now been refined and cleaned up with my experience and the availability of technology, I won’t be making the same mistake I made back in 2008.
With turning pre-foreclosure to profits through the stages…
Stage 1 – Data
Stage 2 – Contact
Stage 3 – Leads
Stage 4 – Contract
Stage 5 – Leads
This is the time to take this business seriously and get off the sidelines. The opportunities are endless for you and I to take advantage of.
Please be safe out there but here is the script for door knocking pre-foreclosure:
- “John?” Once someone opens the door, just call out the first name without asking for permission. Don’t say things like “Is John here?” or “Can I speak to John please?”
- “Hello. Are you open to entertaining an offer on this house?” If it’s John, ask him or whoever if they are open to entertaining an offer on the house.
- “Please write here a good phone number and email address to reach out for an offer in the next business hours?” If they are open, ask them for their phone number and email address where you and your partner can send an offer within the next 24 business hours.
- “Why are you selling?” Ask them why they want to sell?
- “How soon do you need to sell?” Ask them how soon they need to sell?
- “Do you have an idea of what you want for the house if we can close in 10-14 days?” While you are at it, ask them to give you an idea of how much they are willing to accept if you can close in 10-14 days.
- “When is a good time to call you tomorrow?” You want to secure the next conversation before you exit this particular conversation.
If you get a “NO” on any of those questions, simply thank them for their time and don’t forget to ask for referrals. “Oh okay. Thanks for your time, do you know anyone that needs to get rid of any unwanted property?”
Don’t give up so soon. Give them a business card in case they need to reach out if they encounter anyone… you never know.
Now… door knocking is an old school way of closing your first deal and many more after. But there is also a new school way of doing it.
Door knocking is a contact stage outreach campaign strategy that works but there is a big challenge here and I want to carefully spell it out for you.
Before I do that, if door knocking is working for you or has worked for you, all you have to do is to keep doing what you are doing and leave this video right now.
But if it has never worked for you or you just have a feeling based on your prediction that it won’t work for you,
..or you want to scale your business faster, easier and simpler leveraging simple technology,
The good news is that there are at least 3 new school ways of attracting even better quality distressed homeowners and motivated seller leads that already know they want to give away their house to you.
The big challenge of door knocking as a contact outreach campaign is if you are willing to keep working until it works or if you will quit before it works. Big question right?
Share your thoughts below in the comment area please
Before you leave, be sure to access my 2 books for free:
Smart real estate wholesaling and Real Estate Money secrets… at www.smartrealestatewholesaling.com
You will also get an invite to access my exclusive membership…at the time of recording this video at just $1.
You will be able to access 2 different coaching programs that normally cost a minimum of $2,500 each.