QUESTION ⁉️ “How do I approach a house about to go into foreclosure?”
Just in case you are brand new to us here, let me answer “why would anyone want to approach a house that’s about to get foreclosed on.”
Well, it’s one of the sources of wholesale real estate deals.
What is Wholesale Real Estate?
It’s a business model for a very lucrative source of income involving real estate.
As real estate investors, what we do is find deeply discounted properties that we can flip or fix and flip to end buyers.
When we do so, we make serious and lucrative profits between the buying and selling of such property.
One of the events that can make a seller motivated to sell at a deep discount is foreclosure.
Foreclosure is a lawsuit that reclaims a real estate property that was used as collateral for a loan or lien back to the lender or lien holder.
When a lender forecloses and take over a property, the owner loses the property and an equity they may have in it.
In addition to that, it can damage their credit score and worthiness which means not qualifying to make lots of financial moves potentially for the next 7 years.
In order to avoid that, a property owner can simply decided to sell cheaply and quickly ahead of a lender taking away the property.
Even though they may not make as much money, they can preserve their credit score and worthiness until they get back on their feet financially.
It’s basically a credit solution and preservation strategy.
But you as an investor or wholesale real estate professional can benefit by picking up these cheap properties as a solution to this owners.
You can then turn around and sell the rights to purchase these types of properties to end cash buyers for a lucrative fee.
Now that we understand the motive, let’s answer the original question.
“How do I approach a house about to go into foreclosure?”
First of all, you can simply walk up to the house.
But I am guessing, you are more or less asking asking how you can approach the owner of a house that’s about to go in foreclose and not necessarily the house.
First of all, it’s better that you get some kind of invitation from the owner.
So the real question is how can you generate a bunch of invitation from property owner in distress due to the rise and threat of foreclosures.
1. Access the public list of foreclosures
2. Offer the list a “save your credit” or “we buy houses” solution to the list using mass marketing.
3. Sort the responses for motivated sellers only.
If you can keep it that simple, tricks and scripts will become more and more useless as this owners will be the one chasing you and not the other way around.
ENJOY THE VIDEO!