As a real estate investor, marketing to those in foreclosure is probably pretty high on your agenda, as there’s definitely an opportunity to get a good return on such investments. As such, you’ve got to compile a list of new and recent foreclosures, but that list can get relatively large.
So what do you do with a large foreclosure list? You filter it to get a smaller list of those who are highly motivated to sell homes that fit your specific criteria. You’re wanting to target those who you’ll have the best chance of getting a response from, so mostly, you’re getting more for your money. Here are some helpful tips for filtering through your foreclosure list:
Mail to your targeted area
To filter your foreclosure list, only mail to your targeted area. If you mail outside that area, you’re going to waste time and money. One way to determine what your target area is to search a 30-minute driving distance from your zip code. This gives you ample territory but will also help you reduce the size of your list.
To filter your list, look at the average price you’re after and then add and subtract 50 percent from that price and market to the houses that fall within those ranges. For example, if the average home price that you’re targeting is $200K, filter your list for homes that fall 50 percent above ($300K) and 50 percent below ($100K).
When filtering your foreclosure list, filter depending on property type. For example, we don’t usually purchase condos or mobile homes, so when you’re narrowing your list down, check only the single-family residences and don’t market to the types of properties you’re just not interested in.
Filter for the highest equity percentage and be mindful of your budget and the number of records you’re shooting for.
You definitely want to give time and energy to your foreclosure list, but you don’t want to waste time on properties that are out of your target area, budget, or those that aren’t the type of property you desire. When it comes to marketing, it’s best to have a smaller list and mail your marketing pieces to them two, three, four times, rather than mail once to a huge list. It’s simply better bang for your buck.
Take these tips for filtering your foreclosure list into consideration as you continue building and marketing to your foreclosure list.