Exiting out of NPN to Foreclose to PN – marketing!

[Robyn Jackson]

This is still a WIP but wanted to share.

I bought a NPN, foreclosed, with plans of selling retail & creating a performing note.

I’m still on that track but was told by two investors & one realtor that the property was in a horrible neighborhood & I would be lucky to get $5k. Yikes!  One of the investors was nice enough along with $75, to put up three FSBO with SF signs for me. Had 3 calls but I was on the phone & they did not leave a message or call back.

I have close to $15k with cost of note & foreclosure.  After listening to a similar story on a Monday call between Eddie & Imran I came up with a plan to market to the locals & not the investors or realtors.

My source – the appraisal district.  It was easy to download the names & addresses of the comparable neighborhood which amounted to around 450 names. Many of the homes are not owner occupied thereby being either rented, vacant, or in foreclosure. I put together a handwritten note & mailed 100 last week to the neighbors. I’ve gotten two calls. Mailed another 100 yesterday; should arrive in mailboxes on Wednesday. Then will mail the remainder over the next 4-5 days.

This is certainly not a done deal but I like the way this is going given the 2% response.

I will also go back & mail a slightly different letter to the owners of the non-owner occupied homes. I will attach my letter for anyone interested. Also will attach a picture of the street scene for my property (once I figure out how).  

[ShawnL]

I’ve seen investors have good luck with seller finance properties. Even in rough condition. You can’t rent a house for $300-400 even in terrible condition in most parts of the country. Put it on zillow, trulia, FSBO sites, syndication sites.

Be careful buying to acquire property in markets you aren’t familiar with. Often in urban cities, one city block can be the difference between a $75k property and a $15k property. And BPOs are not reliable. I’ve gotten two BPOs within a week and had it range from $57k and $110k.

Now if you have PN that becomes REO thats another story because you’re not buying it with the intention of getting an REO. If you have a portfolio, it will even out. But if you’re buying just to get REO, you’d better know that market just as if you were buying straight up REO and FSBO with the intention of making money renting or flipping.

 

Good luck!