It can be hard figuring out where to start in order to find pre-foreclosures to invest in. Marketing mortgage short sales is a cinch with the right tactics and good information, such as the lis pendens list. To start, there are three points to marketing mortgage short sales that are absolutely crucial to know; the importance of marketing, competition, and there are multiple methods of marketing.
Importance of marketing
You need to use all tactics and resources you have available in marketing. Show those homeowners and banks that you are a professional property investor and set yourself apart from the amateurs. Preforeclosure investing is one of the most competitive real estate niches. Make sure your marketing stands above everyone else’s.
There is no one true method of marketing to the preforeclosure market. You can use at least three forms of advertising at all times when marketing to these preforeclosure owners and really saturate the market with your name. Now that you know the three points of marketing mortgage short sales, you’ll need to learn some of the more effective methods of reaching that potential client.
There are two main types of marketing; Shotgun marketing and Sniper marketing. Shotgun marketing has a broad range with no specific target audience. It catches all types of people including some your competition may not be reaching. On the downside, many of the potential clients you reach may not be qualified or may not need your services.
Sniper marketing is direct and you’ll know it will get to a certain type of homeowner. On the downside, many other preforeclosure investors are using this method, so you will have a lot of competition in this type of marketing.
Advertising to the Lis Pendens
Many investors involved with marketing mortgage short sales talk about marketing to the lis pendens list. After a homeowner is 90 days behind on mortgage payments, the bank issues a Notice of Default or the lis pendens. This is the first time that the client’s situation becomes public as it’s filed at the county courthouse.
Now the investors know that the homeowner is having difficulty making payments and is in a preforeclosure situation. You can look up properties on the lis pendens and approach the homeowners about purchasing their property. It’s not uncommon in high-density foreclosure areas to see 50 different individuals using the same marketing tactics.
Always go through the lis pendens list. Get used to the process then you can try hiring someone else to find potential clients for you. The financial newspaper, published every day or every few days is a good place to start. It has all the homeowners published in the lis pendens listed by name and address. Pull new names every day or so to remain ahead of the competition and get you’re marketing out first.
Looking the Professional Investor
Marketing mortgage short sales is really easy once you know all about reaching potential clients. Below are three additional tips to set yourself up as a credible investor:
1) Toll free or local vanity number: A good vanity number can show that you are focused on marketing mortgage short sales with something like, ’1-800-Bad-Debt’.
2) Website: Website templates are available for a very low cost. These allow your clients to check you out and see your testimonials from past customers.
3) Logo: This brand image instantly gives you credibility that 95% of investors won’t have. It only takes a few minutes to create a simple logo on your computer.
Marketing Mortgage Short Sales Strategies
Now that you have the list, there are many marketing strategies you can use. One of the most popular ways is direct mail. There are many types of direct mail campaigns.
o Check letter: You can send the potential preforeclosure client a letter with a perforated check on it including an amount such as $1300. You will actually give the seller $1300, sometimes more depending on equity, if you complete a successful deal with them. The check is not valid for deposit, but when they call, let the homeowner know that you will pay for the deal.
o Radio: It is great marketing mortgage short sales to reach a large amount of people. You might not want to do radio as your first step, but if you want to take your marketing up a notch, its something to consider.
o Newspaper Ads: Many other investors are marketing in the paper. The reason so many people do classifieds is it works. Newspaper ads can be expensive depending on where you live, but if they get you one preforeclosure deal, ads make sense. Set yourself apart from other investors using newspaper ads is market to preforeclosure owners. Use fun slogans like “run away from your house,” “escape your debt forever,” etc.
o Television: TV is effective, but it takes time to create a professional piece. It can also be expensive. If you want to completely set yourself apart, no other medium can give you the kind of credibility commercials provide late night TV has good advertising rates and reaches folks who are in trouble and probably have trouble sleeping. Just make sure your piece is professional and to the point.
o Greeting card: The greeting card is a more personal touch in marketing mortgage short sales . The greeting can say, “We know what you’re going through and have helped out a lot of people in this process in the past. We are behind the phone, an actual person, not a huge company.” The homeowner will know that they are dealing with a real individual rather than a large conglomerate.
o Postcards: These work very well because they are cheap and you can send many. Don’t just do postcards by themselves in your marketing. However they are a great addition to other types of marketing programs. Postcards give the ability to have your message get to the homeowner at a very limited expense.
o Post-It Notes: Placing post it notes around the area, also gives you very detailed results of what neighborhood to focus on, although you won’t know if those particular homeowners need help. Stick post-it notes around a neighborhood.
o Signs: Signs work great for catching people’s attention. These are expensive and make sure to check with your municipality to make sure you are allowed to do it.
This is all you need to know to get started in marketing mortgage short sales. Make sure you know, realize and implement the points above and you’ll have some success in your chosen preforeclosure market. It’s as simple as taking action to find those potential homeowners.