Foreclosure Investing Article In New York Times

There was a good article recently in the New York Times discussing the various ways to profit from investing in financially distressed properties.

One point in the article they discuss is purchasing properties during pre-foreclosure:

“You could probably get a bargain in preforeclosures,” said John T. Reed, the publisher of Real Estate Investor’s Monthly, a newsletter, “but you have to be ready to pound the pavement.”

By that he means persuading homeowners to sell and, quite possibly, competing with other investors with the same goal.

Buyers can find preforeclosure and foreclosed properties by poring over the delinquency notices that lenders file with county courthouses or publish in local newspapers. They can also contact lenders directly. And online services including RealtyTrac and ForeclosurePoint, a Seattle-area data company, also provide lists of properties.

An intrepid investor might trawl certain neighborhoods for prospects. “You can drive around and look for homes that aren’t taken care of,” often a sign of financial difficulties inside, Mr. Reed said. But, he added, “some people don’t have the personality or the stomach to go door to door and talk someone into selling.”

As Mr. Reed notes, getting out and knocking on doors is the most effective method of getting in front of these folks.

I can confirm this works, because I do the same thing on behalf of my foreclosure relief service, Stop Foreclosure Illinois. My conversion ratio runs about 2% to 3% of the homes I visit result in listings. I've also found that in my conversations with these folks that they ignore 95% of the mailings that they receive from investors, attorneys, and real estate agents.

The problem with "door knocking" is most investors don't have the time to visit 30 to 50 homes. Plus some of the homeowners that I do convert, their homes and financial situations may not the right fit for investors.

My suggestion (which is a shameless plug):

1. Sign up for the WGRE Email Newsletter & Foreclosure Hotsheet. Its FREE and you will receive the newest foreclosure filings for Will & Grundy County each week.
2. Let me know which properties you are interested in. I will move those homes to the top of the list that I will visit that week. Ideally they will be part of that 2% to 3% I list as Short Sales.
3. Let me and my team at Real Foreclosure Solutions negotiate the Short Sale on behalf of you and the homeowner. A win/win for all parties.

There has been no better time in the last 20 years to take advantage of financially distressed properties. What are you waiting for?