Many real estate investors desire foreclosures because there is usually a pretty good return on investment. Chances are if you’ve been investing for a while, you get a list compiled of recent and new foreclosures. It is always a good idea to filer your foreclosure list because you can then focus your efforts in the right direction for you. Here are some strategies as to how you can filter your foreclosure list:
Stay within your targeted area
This is a very basic, but important rule. You should always focus on your targeted area. Don’t waste your time mailing to listings that do not fall within your territory. A good way of identifying properties within your targeted area is to come up with a list of zip codes that are within 30 minutes driving distance from your office.
Type of property
Determine which type of properties you are interested in, whether its condos, mobile homes, detached, semi-detached etc. Establish this criterion and then filter your foreclosure list on this basis.
As a general rule, it is always a good idea to find out the average price of the type of properties you are interested in within your targeted area. Then, subtract 50% from this price and then filters out properties that fall within this range. Don’t go for houses that are overly expensive or properties that are priced too low to give you any benefit. Keep within the targeted price range.
If your foreclosure list offers equity percentage, go for the highest equity percentage. Keep your marketing budget in mind, the number of records you want, and play with the percentage to get the size of the list you need.
Foreclosure lists can be filtered on the basis of the current status of the listed properties. You can filter out the ones you would be interested in based on whether they are active, under contract or pending.
Another strategy would be to filter on the basis of the amount of time they have been on sale in the market. You can choose properties that have been added within the past 60 days, 30 days, etc.
You can also filter out properties that have had at least one price reduction within a specified period of time.
Filtering your foreclosure list is always a better idea because you focus your energy and your marketing efforts on the right properties for you. It is always better to mail multiple times to a small list, as compared to a big list, especially if that list contains properties that you are simply not interested in. Apply the above-mentioned strategies to streamline your list and maximize your efforts.