Marketing to Preforeclosures

I hope your week has been good to you and I hope you’re working closer to your goals.

Ok, lets continue our talk about mastering the preforeclosure process. First, we’ve discussed the homeowner’s options while in foreclosure, and then we talked about the actual foreclosure process.

Now, let’s dive right into marketing to those in preforeclosure with all the methods you can use to start a successful marketing campaign to those behind on payments.

1. Classified Ads: This method is the most popular methods to marketing your business. The reason? It works and it’s very economical. Also, think of this: if someone is behind on their payments and they decide to move, where are they going to look for an apartment or house to move? This isn’t rocket science here.

2. Signs (aka Bandit Signs) If you decide to use these, you should first check with your local city ordinance to see if these types of signs are illegal. Next do a Google search for ‘bandit signs’ and you’ll see tons of providers. Most of these providers are cheaper than what your local print shop would be. Be sure to keep your message simple, as most try to fill the sign with too much text, 800 numbers with extensions, and website information. It makes the sign to jumbled. Remember, you’ve only got a split second. Also, be sure you place these in areas that will get noticed. Just last week, I saw one on a pole that I couldn’t even read the phone number because it was so small and out of the way.

The methods mentioned above are used to attract those that are just falling behind or those that are just in the preforeclosure stage. You can use these methods to gain preforeclosure leads to call you directly or to attract them into your funnel.

3. Direct Mail Campaigns: Hands down - my favorite method. Before you decide to conduct a direct mail campaign, you’ve got to know that your preforeclosure list is up to date. As you’re probably already aware, you can buy lists of preforeclosures or you can create your own from the courthouse records. The quality of the list is more important than the letter or postcard you send out. So make sure you’re receiving these preforeclosure leads from a reputable source. And be sure they’re not selling these lists after they’ve cherry-picked all of the deals.

4. Making outbound phone calls: You can make outbound calls to sellers in preforeclosure and it will save you loads of time. You can search for those numbers listed at 411.com or some other free number search. A lot of times you will find that those in preforeclosure have changed their numbers to an unlisted number because of collection calls. If you desperately, need to find the seller, then you could hire a skip tracer. However, you’ve got to be sure the lead is worth investing the $15-$25 on a skip tracer just to be able to talk to the seller.

5. Door Knocking: This technique is what separates the men from the boys. Sometimes, you’ve just to get off your butt and chase the deal. If you know there’s a chunk of equity, you’ve got to be willing to do what others are scared of and go to the door. If you’re nervous, practice knocking on a few doors that the deals have little to no equity. This will help get rid of the nervous jitters. Although this method can be a little un-nerving, most people aren’t that mean. As a matter of fact, most are a little shocked when you appear at their door. Even if that person behind the door is a pompous ass, so what? Even though this method is effective, it’s the most expensive, because its so time consuming. Before you head out the door, be sure to have a good program to map out your locations with directions, something like Microsoft Streets and Trips

You’ve got to be willing to attack the deal from every angle possible. Use classifieds and signage to get the early preforeclosure deals into your funnel. Then focus your efforts to directly marketing to those in preforeclosure. It’s all about systemization and your ability to execute your marketing.

Now, have a great weekend!

Derek Pierce