Word of Mouth
Perhaps one of the best ways to get leads about properties in the pre-foreclosure stage is by word of mouth. You'd be surprised at what information you can get if you let people know you are interested in purchasing foreclosure properties.
Tell everyone that you are an active real-estate investor and looking for properties to purchase now. Ask for referrals from your real-estate attorney, title company, and your accountant. Be sure to tell your relatives and friends that you are actively looking for investment properties.
Business Cards
Purchase printed cards from the local printer. Forget the idea of printing up your own business cards on your inkjet printer from some stock you bought at an office supply store. Don't be cheap in your search for properties. Pay the $30 or so for 500 cards.
You have to look like you have the money to buy real estate. Handing someone a flimsy card printed on your home computer sends the message that you are not a serious real-estate investor, or worse, that you are a flake!
You don't have to dress in silk suits or drive a Rolls Royce, but you have to present an image that you can purchase real estate. Don't do anything that gives the impression you are broke, don't have the money, or that you are an amateur real-estate investor.
Making Contacts
Visit open houses. Every week there will be open houses in properties located in your investment area. You should visit all open houses whether the property owners (FSBOs) or real-estate agents host them.
Gather property information sheets. Inspect the properties. Tell the hosts that you are a real-estate investor and are looking for investment properties.
Real-estate agents sitting in open houses are there to sell the property. (They have to show the property owner that they are working to sell their property; that is how they can justify collecting their commission.) However, the agents are also looking for potential buyers so they can sell any property to them as well as list the properties these potential buyers currently own.
As a real-estate investor, you want to develop relationships with working real-estate agents. Agents in open houses are generally looking for new clients.
The agent will ask if you are working with another agent. Your reply should always be that you are an active investor and will work with any agent that can find the properties you want to buy. You will, of course, over time develop a network of just a few working agents that are actively referring properties to you. You should never do anything that would cut the agent out of her commissions. And whenever possible, refer clients and potential listings to the agent to maintain a good working, professional relationship.
Don't be surprised if you have to talk to many real-estate agents before you find one that really will work with you. Most agents will move on when they realize you are looking to purchase properties at a substantial discount. But if you are persistent, you will find agents that realize they have a chance of selling your properties for you.
Make contacts with repair people and other trades contractors. Ask them to pass along leads of potential properties, and be sure to refer work back to them. Nothing builds loyalty more than helping someone else find paying jobs or a way to make money.
Network with other real-estate investors. You will certainly find them by calling about properties for sale. Make sure you maintain meticulous contact information so you can get a hold of them again. Ask them to keep you in mind with properties they have for sale.
Another way to network with real-estate investors is to attend real-estate investing clubs and meetings. Larger areas have these associations. You may have to ask around until you locate one near you.
