Interested in making money with real estate? Consider pre foreclosure home investing ― a great way to begin making money with real estate, without the usual financial scrutiny. But before you start in the world of pre foreclosure investing, you should understand a little about the inner and outer process the owner of a pre foreclosure property may be going through.
You have about three weeks (the usual pre foreclosure period before the foreclosure auction) to contact the owner of a pre foreclosure property, as well as complete the paperwork and title search, obtain funding, etc. Navigate the pre foreclosure period well, though, and you’ll be on your way to making money with real estate.
It’s important to consider that most owners of pre foreclosure home are highly stressed and may be mad at the world for the situation they’re in. At first, they may not be friendly or open to your offer to buy their pre foreclosure home. Though your goal is making money with real estate, their goal, though they may not know how to achieve it, is making it all go away.
So, your more immediate goal is not making money with real estate, but making them realize that you can help them make it all go away, by buying their pre foreclosure property. Help them realize you can rid them of the mortgage debt they’ve fallen behind on, the pre foreclosure, and help their credit remain as unharmed as possible.
One way to begin reaching homeowners in pre foreclosure is by mail. Make your mailings stand out from the barrage of mail pre foreclosure owners are getting from debt collectors. Send them a different colored friendly postcard every few days. Or try hand-addressed “lumpy mail.” This keeps you in front of them as they’re thinking of their alternatives. They’re likely to become curious and give you a call. Or, it may be that the homeowner is already ready to find someone to buy his pre foreclosure home as quickly as possible; in that case, your mailing will have arrived with perfect timing.
Once the owner of the pre foreclosure home sees that you offer hope, he is likely to become very motivated to work with you to end the stress associated with the pre foreclosure situation. Yes, you’ll be making money with real estate, but you’ll also be helping the homeowner out of an extremely painful situation.