OfflineDoes anyone have a Real World answer to convincing homeowners in Default that we can help them save their credit (and help them get back some equity if they have any). I have tried calling a few with no success and have sent out 50 or more letters (letters are very well written)with no response. I have been at this for a year,on and off, with a mentor who has basically given up on me. I have no problem finding buyer tenants, it is the owners, who most of them are going to lose their house anyway to the auction, that are the problem.
Andrew N.Calif.
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I think that marketing to homeowners in default is the wrong strategy for lease options. You want people that are current on their mortgage but need to sell for reasons like needing to move, tired landlords, divorce, 2 mortgage payments, illness, loss of job, house listed but not selling, you know, those types of sellers.
Most people in default owe to much in the first place to make a lease option work.
You are right about the tenant/ buyers LIST being easy to build. We get a lot, but few that actually qualify. Remember you must pre qualify those people to make sure they will be able to exercise their option in 12 to 24 months. Do you have a broker lined up to do this for you?
The hardest part of this strategy is finding the deal, as in any other RE strategy!
Just a note: If your "mentor" has you looking at homeowners in default for lease options trade him in on a new mentor!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Thanks for your incite. The reason I use the default strategy is my mentor has had great success (100k in 9 months) in the smaller foothill towns of N. Calif.
I am trying in a high priced beach town of Santa Cruz, Ca.
1) I use a paid site that gives me updates twice a week from the hall of records preforeclosers with address, owners name, the amount of default(I only deal with owners that are behind 20k or less with an original loan of 400k or less), ect.
2) The theory is, that since 85% of them are going to lose their house anyway, why not convince them to do a sandwhich lease and let us save their credit (as well as build it up overtime.
3) Start with 5 yr. option and use escrow service for payments
Andrew
Dreamhome Properties LLC