Successful real estate investors find great deals because they know where to look. Discover where foreclosure properties can be found to profit in the same way. Foreclosure homes are an opportunity for first time home buyers to purchase their home at a discounted price
Finding lucrative foreclosure deals is done by working the numbers; analyzing potential leads and submitting offers regularly. Veteran real estate investors know that if they continue this process, they will ultimately find a foreclosure deal that profits them. Despite any competition there may be, the key to success in foreclosure investing is to keep the deal pipeline full with profitable leads.
Lead #1: Real Estate Brokers
Real estate brokers can help buyers find short sale properties and pre-foreclosure properties that are listed on the local Multiple Listing Service (MLS). Additionally, brokers can access the listings of other brokers in the area through the MLS and they could also have access to clients with private portfolios of properties.
Lead #2: Government Websites
HUD, Fannie Mae, Freddie Mac, USDA and VA all have websites that list properties that have foreclosed. These sites also provide information on rebates and any special incentives being offered. HUD and VA foreclosed properties typically run their own auction however, to submit a bid, investors must use a real estate broker that has been qualified by HUD and VA. Offers for Fannie Mae and Freddie Mac properties are also submitted through qualified real estate brokers. The USDA sells their foreclosed properties via auction and interested buyers can submit an offer through the listed local USDA / Rural Development Servicing Office listed on the property information sheet. Buyers for USDA properties must qualify for the program in order to acquire the property.
Lead #3: Banks
National banks list their Real Estate Owned (REO) properties on their website. Interested investors can search property listings and submit offers to the real estate agent handling the sale of the property. Investors can also call local banks to find out if they have any REO properties on hand. The person that foreclosure investors want to deal with is the Loss Mitigation Specialist. This person has the power to approve any offer submitted.
Lead #4: Local Recording Office
The local recording office is where investors can find information about properties in pre-foreclosure. Although foreclosure laws vary by state, properties that are headed for foreclosure will have a Notice of Default or Lis Pendens recorded in the property’s file. Searching through the files is free.
Lead #5: Direct Mail
There are many people who believe that direct mail is an expensive and obsolete form of marketing. Not only is that information inaccurate, the truth is that direct mail is still going strong and investors still capitalize on mail outs every single day. A simple letter or postcard that costs $0.40 to $0.50 cents to send out can yield thousands of dollars of profit if it leads an investor to just one deal.
Lead #6: Newspaper
The local newspaper is still a good source for finding foreclosure properties going to auction. Investors are given basic information about the property but another piece of information that investors want to look for are the names of lawyers or judges handling the foreclosure auction. These lawyers or judges may have a mailing list that investors want to be on so that when new properties come up, investors can be contacted with property information instead of waiting for the notice to print in the local newspaper.
Lead #7: Advertising
There are many forms of free and paid advertising that investors use. Classified ads that read “I Buy Houses” or “Foreclosure Help” are just one of the strategies that investors use to get people to call them. Social networking sites such as Facebook and Twitter are easy to use, free, forms of advertising. Passing out business cards and word of mouth are other ideas to bring in foreclosure leads.
Acquire an ongoing supply of foreclosure property leads by using the seven lead strategies listed above. Remember that finding profitable deals can easily be done as long as the process of reviewing deals and submitting offers continues. Find great foreclosure deals and profit like the veteran investors do.