How Did I Get This Deal? Pre-Foreclosure Case Study

Welcome to another case study where I’ll walk you through a recent deal I closed, revealing the actual text messages exchanged and the strategies employed. My goal is to provide insights that can help you secure your next real estate deal. So, buckle up, and let’s dive into the details.

Introduction and Background

Before we jump into the nitty-gritty, don’t forget! If you find value in this content, share it! Sharing is caring, so pass this video along to anyone in real estate or those currently prospecting for deals.

The case study revolves around a pre-foreclosure situation, two weeks away from the seller losing their home. I’ll shed light on how I turned this scenario into a win-win situation for both the seller and myself.

The Importance of Cold Calling

Cold calling is a crucial aspect, especially for beginners in real estate. In my boot camp, we emphasize the importance of making cold calls as part of the learning process. It’s not a permanent strategy, but an efficient way to engage with a large number of potential sellers and fill your pipeline. Once you master and understand how to talk to the sellers, then you can do direct marketing, campaigns etc. Mastering pre-foreclosure is a numbers game.

The Lead Source: Red X

In this case, I obtained the lead from Red X, a platform I often use for data and lead generation. Cold calling the provided number, I encountered a unique situation where the contact person was different from the actual seller—a dynamic that can be advantageous if handled correctly.

Leveraging the Contact Person

The contact person, in this case, was the seller’s father. He revealed that over 20 investors and realtors had solicited them. I used this information to my advantage, proposing to walk the seller through the available options. The seller, a young individual struggling with mortgage payments, was in a dire situation.

Building Rapport and Setting Expectations

Building rapport with the father, I gained his trust and secured the direct phone number of the seller. The key here is setting expectations. I informed the seller that various realtors and investors would contact him, but to refrain from signing anything until we met. This approach ensures that the seller doesn’t get taken advantage of in a vulnerable situation.

Uncovering the Seller’s Situation

During my conversation with the seller, I focused on three crucial questions:

1. What is the hardship?
   • What was the reason that they fell into pre-foreclosure?
     • This helps you understand all of the details and far back these issues go.
2. How far behind are you?
   • Have they had loan modifications? What are their expenses?
3. Have you explored all available options?
   • How can we find the best option for our sellers?

These questions helped me understand the pain points, motivations, and the best strategy moving forward.

Offering Solutions

In this scenario, the seller was adamant about keeping the family house, despite financial struggles. I offered to call the bank on his behalf to explore options, emphasizing that I could help with either selling the property or buying it if it made financial sense. When it comes to sellers being in pre-foreclosure, it is up to us to be solution oriented.

Handling Competition and Urgency

I warned the seller about the influx of calls from other realtors and investors and stressed the importance of waiting until we met. This preemptive communication proved essential when a competitor (Gary) contacted the seller shortly after our conversation.

The Importance of In-Person Meetings

I quickly scheduled an in-person meeting with the seller to discuss his options. The fact that I was the first person he agreed to meet, despite numerous prior contacts, highlighted the strength of the rapport and trust I had built.

Conclusion and Community Engagement

In conclusion, this case study underscores the importance of genuine communication, setting expectations, and offering valuable solutions. If you’re navigating pre-foreclosure or interested in real estate, consider joining our community for ongoing support, collaboration, and valuable insights.

For more in-depth case studies and educational content about short sales and pre-foreclosures, check out Nicole’s books “Short Sales Uncensored” and “How To Master Short Sales” on Amazon. These can be valuable resources to guide you through the process. Additionally, you can join the Facebook group, The Only Short Sale Group Worth Being A Part Of, to ask questions and gain insights from experienced professionals. Always feel free to reach out to us if you have any more questions or if we can help in any way.

Remember, success in real estate often hinges on authentic relationships and a genuine desire to help others. If you have questions or need guidance, check the video description for relevant links, and let’s continue learning and growing together.