Jim, I agree with you as far as mail goes. I’ve been doing a 6 part mailing to preforeclosures in my area for 10 weeks now and haven’t gotten a single response!I’ve even included postcards in the system. Anyway, I was thinking today that I need to get on the phone. What would you recomend for a phone conversation? Do you let them know that you know about their situation? Can You give an example of how you lead into the conversation? I, and I’m sure all others on the board would greatly appreciate your wisdom and insight here.
I get a listing of all foreclosures about 3 weeks before they go to the steps, but I cannot decide the best way to contact them. Searching for phone numbers is time consuming and not getting me great results. Visiting all of those I am interested in is not possible in such a large, traffic filled metro area. In addition, as a woman I don’t feel safe visiting the homes of strangers. I don’t want to wait around to send letters unless I feel there is some good chance that they will generate some calls.
How do you all go about it? We have 500-800 of these a month and I really want to make good use of the time. The reverse directories just aren’t yielding a lot of info.
It may be worth a try to be “bank specific”. It will narrow down the selection of foreclosures in your area by working directly with specific banks of your choice. You may be able to convince someone at a bank (with the ability to sell the notes) to work with you. You will need to sign a confidentiality agreement (the agreement states you will not disclose the information provided to anyone not on the agreement). By entering into the agreement with you, the bank has the ability to provide a list of loans in the process of foreclosure. (When I did Loan Resolution for a bank, I provided lists monthly to investors who frequently purchased notes from me.) It will give you addresses of defaulted loans for you to do a drive-by analysis for possible note purchases. The bank does not have to know you will attempt to purchase the properties directly, only look at the properties they provide for possible note purchases. Be aware, Loan Resolution Consultants typically do not like investors. If you do not help them resolve loans, they will stop providing lists.
It may not be the best solution, but it beats driving by 500-800 properties. It also gives you the jump onr people watching the newspaper publishings, and frequenting the County Court.
In-person contact. This is going to be BY FAR, the most effective form of contact (assuming you can speak without digging your toe in the ground and drooling). The problem is that this is also the most time-consuming. Your cost is going to be gasoline. In order to implement this tactic you?re going to have to be more selective in who you decide to call on?.300-500 month means you?re not discriminating whatsoever on the likelihood of being able to make a deal. A disadvantage is that when you arrive, the house may be vacant, no one may be home, or they may not answer the door.
Phone. This would be the next choice in terms of effectiveness. This loses the advantage of visual contact, but still maintains a form of personal contact. Once you have a phone number the time to contact goes WAY DOWN from that of in-person. But it does take time to assemble phone numbers?.especially in a day and age of silent numbers. Other problems are recorders and caller ID?.they may screen you out?especially when they?re in financial trouble. Using the phone though might reduce some of the upfront screening time necessary with in-person contact?since you can screen on the phone to a degree. You can call 100 numbers in 3-5 hours (in my opinion). This includes calls that are no answer, recorders (don?t leave a message), and people that you contact that you screen out rapidly, and those that you have a somewhat more indepth conversation. Just keep in mind that the idea is to screen rapidly, set an appointment where most of the indepth conversation takes place. Cost is nominal unless you have zone charges to deal with.
Mail. This is the least effective form of contact. No visual or personal contact here. Mail gets your message in front of possible prospects, if they bother to read it. It could be pitched along with other ?junk mail?. No question though that you can get your message out in volume. Cost is postage, envelopes, paper, ink, etc. One advantage is that they end up calling you?giving you perhaps a temporary psychological advantage. A disadvantage is that this is the easiest solution, and therefore the one that most people pick. Taking a different route sometimes gives you a leg up on the competition if you?re sitting in the living room when that marketing letter arrives.
I?ve said many times that I like the telephone. It?s cheap, fast, and effective if you know how to use it. I first used the telephone in a big way during the gasoline crisis in the 70?s?.it got too expensive to drive around?my prior way. For a situation that I believe is a possible REAL deal, I?ll knock on the door?.seems like a small price to pay. I?ve never been a fan of mail?but I can guarantee you that some people have used this very successfully?Joe Kaiser is an example. And mail does become necessary in situations when the house is vacant, or the owner can?t be contacted in any other way. I like the idea of making things happen, rather than waiting for people to respond to mail or an ad. Just a personal thing I suppose.
Finally, I was struck by your comment ?as a woman I don’t feel safe visiting the homes of strangers.? Hopefully you won?t find this presumptuous, but I don?t buy that one. Women are engaged in this business every day, with ?strangers??..to include my own wife. I would never suggest that you do anything that would be unsafe, but allowing that fear to run your life is going to limit your ability to succeed to some degree. Carry a cell phone, perhaps some pepper spray, let people know where you are, etc.