A friend of mine is a jit-kun-do martial artist, better known as
the fighting style pioneered by the legendary Bruce Lee. Whenever I would visit him, he would impress me by breaking wooden boards with his head…ouch!
I don’t plan to be breaking wooden boards with my head but one
thing I did learn from him is this…
He explained the main philosophy behind his “discipline” was to
understand any particular situation and to know the outcome that
you want BEFORE you enter it.
That got me thinking.
Because what’s true in kung fu fighting is also true in making
money in foreclosures. Your success is greatly affected by how well you know the (seller’s) situation.
Let me explain:
A student of mine was complaining to me after approaching a couple of sellers who blew him off. He basically just knocked on their doors and said, you’re so and so right? Wanna sell your house?
I got to give it to him for taking the step in the right direction,
but I explained to him how he could position himself a lot better
by solving the seller’s problems rather than just some random guy
who wants to make money from the seller.
I said, “You’re getting all detailed info on each foreclosure, you
know exactly what situation the seller is in, why don’t you use it?”
You probably heard it already…
INFORMATION IS POWER!
You see, the professional preforeclosure listings include all the
critical info you need to assess the seller’s problems.
You’ll find the following entries:
1. Full legal names of those involved in the foreclosure proceedings
- You can call them by their name and make a personal approach.
2. Address of property
- No more random searching and chasing after time wasters
3. Address of owner
- The owner may not live at the property
4. Legal description of the property
- Verify the accuracy of the property information.
5. Name of the lender
- By knowing which lender, you will know what terms the seller’s
currently have with their mortgages and then negotiate accordingly.
6. Name and contact information of lawyer representing the lender
- If you can’t contact the seller, you can contact the lawyer who
is handling the property.
7. Current amount owing
- You know the exact amount of equity left in the property, which
gives you a reference point when negotiating with the seller.
8. Date of Purchase
- You know when they purchased the property and therefore the
market prices at the time they purchased – another reference point when negotiating with the seller.
9. Original mortgage amount
- You get an idea of how much the owner put for down payment and how much equity is in the property.
10. Date mortgage went into default
-You know how desperate they are to sell.
11. Current interest rate
- How desirable the loan interest rate is.
12. Current payment amount
- How affordable the seller’s payments are.
13. Original mortgage date
- Indicates how long they have made payments the property.
14. Payment frequency
- How often they make payments on their mortgage.
15. Maturity date
- When the mortgage gets paid off.
With all these little bits of information, you can now piece
together a picture and gain a full understanding of the seller’s
situation. This allows you plan a solution/outcome that’s
beneficial to you and to the seller. By knowing exactly what you
want, you are already half way there!
So now, instead of being some person who wants to make a quick buck from the seller’s problems, you can position yourself as a “problem solver”. The seller will appreciate that you’ve taken the time to understand his/her situation.
And now you can work together to customize a solution!
How valuable is this information? It has allowed my members and I
to save and make millions in real estate.
To Your Success!
Aiden Win
Mr. Foreclosure
P.S. Get the best of deals available for Price, Terms, Urgency,
Information from our database goldmine of the latest pre-foreclosure listings
