Epic Real Estate Investing - Real Estate Lead Generation Ideas - Pre Foreclosures | 682

Episode Date: June 13, 2019

Tune in, learn the 5 stages of pre foreclosures grief, and discover new lead generation ideas. Learn more about your ad choices. Visit megaphone.fm/adchoices

The one gold nugget that I received by spending three days of the Epic Intemptive is the importance of having systems. I'm putting systems into place and to be able to follow up on the system, make it happen, and every day going ahead and doing the journal every day as well. People who I would recommend to come to Epic Intensive, be people who are interested in real estate, interested in making money in real estate, looking for a system, looking for ways in which to go ahead and take that business

to the next level, and just really, really just be able to achieve success. Thank you, Matt, for all the great information that you've given on a podcast. For example, it's been absolutely amazing to be able to listen and utilize that information. And it's just actually a great gift that you've been able to give us. Hey, Rockstar, Matt here. Thank you for listening to this show. I've got a great one for you today.

And before we get started, though, I just had a really quick question for you. Are you tired of spending more and more on marketing, but not seeing enough success with your real estate investing? I mean, the market is showing that spending more on marketing just might not be enough. And setting up a really good automated lead machine is almost impossible for the average person to do on their own, especially in the beginning. The real estate investing solution of the future takes things to the next level because now you're contacting leads, now you're setting appointments, and now you're making offers because of a solid automated lead machine. That's what it'll do for you. It'll put that type of opportunity in front of you so you can take those actions.

And before I forget, if you like the sound of this and you want to go deeper with it, you might like to attend the live three-day Epic Intensive Lead Machine Workshop. It's July 18th through the 20th in Manhattan Beach, California. And if that sounds interesting, then head on over to Epicintensive.com and get the details. Epicintensive.com. All righty, let's get on with the show. Today, I'm going to talk about finding discounted real estate, finding off-market real estate at a discount. And the main thing we're going to focus on is knocking on the doors of pre-firm.

foreclosures. This is Terrio Media. But before we get started, if you're serious about finding discounted real estate, and if you're really serious about finding it at deeply discounted prices, then you might like a copy of our lead machine architecture. It contains the five building blocks that we use here in our office to create and optimize all of our lead generation strategies and techniques. And if that sounds good to you, you can head on over to epic leadmachine.com, grab a copy.

All right. wrote it myself, put all some really cool pictures in there. It's fun to look at. And it's actually very productive and it'll make you some money too. All right. So when it comes to knocking on the doors of property owners, we all know we need to be prepared to play the numbers game. It's a numbers game.

You've heard that before, probably with just about every lead generation strategy. It's become very much a cliche. But you keep hearing it because it's absolutely true. But a big thing that holds people back with this particular strategy, knocking on on doors is specifically we're talking about pre-foreclosures is knowing what to say, right? How to approach the owner?

How do you make this happen? Because you hear investors all the time doing really well with this. This is a time-honored strategy. People have been doing it since they've been purchasing real estate and investing in real estate and it's worked really well and it still works today. But how do you pull it off is the big question. And I get it all the time. People are really worried about looking dumb or stupid and

of the owner not knowing what to say. They're afraid of the rejection that can and most definitely will come with this strategy. The good news is it only takes a couple or one or two to have it all really play out and be worth it, but they're still concerned about the strategy or excuse me, the rejection that comes with the strategy or, or, you know, even the horror stories of getting yelled at and getting the door slammed in your face. And it all makes sense because that can happen and it probably will if you do it long enough. But here's the thing. It's just one of countless approaches to generating leads and finding properties at a discount. That's why you hear about it so much because it works.

And it's one of the ways some of the more productive real estate investors will go about doing it. And one of the bigger aspects that makes it so appealing is that it's free to do. There's really no marketing costs involved. It's kind of a, do you want to pay for your marketing with your wallet or do you want to pay for your marketing with your time? And this is one of those strategies where you use your time to pay for that marketing. All right. So it doesn't require any.

real finances to execute. It does require, though, in exchange or alternatively, is some experience and skill. And like any skill, this skill, too, can be learned. And the way you learn any skill is just doing it over and over and over again. It takes repetition. And in many cases, massive repetition, particularly if you're looking to become a master of whatever it is that you're looking to master. I don't know if that made sense. Yes, it totally made sense. Massive repetition is what creates a master. And if you want to master this skill, it's not any different than any other skill.

It just takes a lot of repetition. That's what I'd consider set yourself up. The first step to success with this strategy is just set yourself up with that expectation. I'm going to have to take skill. It takes experience. And I'm going to have to work those numbers to develop that skill. The second part to success of this is getting out there and doing it. You know, like any lead generation strategy,

you've got to do it consistently and with persistence. And it will pay off. And so the whole concept around this, working pre-foreclosures, if you've got people that are in some sort of financial problem or struggle where they can't make their mortgage payment. And so they need some help. And they're going to go through these five stages of help or five stages of what we call grief, foreclosure grief. To give them some peace of mind around that is what you do as an investor and exchange you'll get some equity in return. And I have a story about that that I want to share. and I'll do that in just a second,

but if you'd like to go deeper with this and start really closing some of these big deals and these deeply discounted deals through this strategy, you might like what we have over at Epicleadmachine.com. You can get the five building blocks to any, to creating any lead generation strategy that's really effective for you. All right, so you can grab that over at Epicleadmachine.com. All right, so I'm going to start a little bit about a story here,

and I'm going to go back and forth from a web page here because over on our YouTube channel at epic rye.tv. If you haven't subscribed, please do. But this is a really good spot to get some interaction with me. I keep an eye on it. You know, if you got a really quick question, this is a great place to go. And I've been in exchange with a subscriber.

He's not a client. He's not even a member of the Epic Pro Academy. But he's a frequent watcher of the videos, and he asks questions about them and I give him answers. But the most recent exchange, it's really long, longer than normal. I'll just kind of read it to you. His name's Jess.

So, Jess, thank you for your participation. And it just got to a point where it was too much to type. So I promised Jess that, you know, let's talk about it here. So you have reference to it. And then there's probably other people that want to hear about it as well. So he starts off by writing, I don't have the extra money to send letters. So I've gotten a list and have planned to go door knocking. I have a crappy $10 an hour job and have no extra money at all.

And my job sucks the life out of me. I plan to door knock on my days off. I just had Wednesday and Thursday off. I didn't door knock on one door. I'm scared of failing. and I just lack any confidence at all. I'm afraid I won't know what to say to the people or be able to make a deal happen. So my fear has me not moving forward.

Very common, right? Particularly, you know, this particular strategy knocking on doors, that very first time there can be some serious anxiety about it. So I just asked them, what's your biggest fear? And if it comes true, what's the worst that can happen? And he said, I keep trying that, making mental notes of what is the worst outcome it could be. just be shot down and what was the best outcome could be finally start getting deals and making that happen. And I just can't figure out why I'm so scared. And so I asked him, probably the bigger question, why do you want to doork?

There's so many different options out there to generating leads. Why do you want to do this and why are you putting yourself through so much pain and suffering and struggle is what was behind that question? And so his answer, and this is going to be a very common answer for a lot of people. One reason is I don't have the money to do all the mailing campaigns or purchase a skip tracing system. is because I figure that will be a faster way to go about it because some of these houses go up for auction at the beginning of next month. And third is because I feel like it is a better chance of being able to give them more information rather than by phone or mail when they have a higher chance of tuning the info out by stopping, reading, or hanging up. So do you think door knocking is a bad idea? That's where I kind of came in.

I said, there's a lot here to type. So let me just do this here. So here we are. So a few things to look at, Jess, is one is understanding the fire. stages of pre-foreclosure grief. Five stages of, we'll call it pre-foreclosure grief. All right. So number one, we call denial. And it's really important that you understand these five stages because as you are knocking on these doors and talking to pre-foreclosures, you don't know exactly what stage they're going to be in. So denial, this is the first reaction many people have when

they learn that they might be losing something important to them, and that is to deny that it's even happening. They're thinking, oh, there must be some mistake. I'm not going to lose my home. This can't be happening to me. So they're in denial. And once they realize it's probably real, they move into this next phase of grief called anger.

You know, when the person understands that it's really happening and denial can't last forever, they get angry at whomever they think is to blame or the nearest person to them. You know, why is this happening to me? It's not fair. Those greedy banks are to blame. And sometimes if you knock on the door during this phase, you can be thrown into that pile and that anger can be directed at you.

It's not directed at you or it's not personal. Just understand that if you get an angry homeowner when you're knocking on their door, it's probably because of this. They're just lumping you into everything else that's going wrong in their life. Number three, bargaining. So this is the third stage. It involves the person trying to avoid the cause of the grief entirely to some sort of action.

They know they've got to do something. You know, maybe if I work really hard and tell the bank about my hardship, they'll let me keep the house. Right? So they start having this little negotiation thing going. They're calling the bank. What can I do? They start sharing their sob story.

And then they start sharing their story with everybody. And, you know, if they can't find a solution there, they move on to the next phase. And that's depression. Depression. So on the fourth stage, the person that's really is saddened by the reality of their situation. You know, I've got so many memories in this house. What am I going to do? What are people going to think?

And like my neighbors are going to find out because it's public record. My family's going to recognize something's going on. And so they start getting really depressed about it. And finally, they'll go into stage five if they haven't found a solution yet. We call that acceptance. So in the fifth stage, a person accepts the reality of their situation. They've got some stable emotions about it, and they start looking for a solution. This is where they start getting practical.

And in some cases, maybe even desperate, but they're willing to do anything. I mean, they're like, this is really happening. I wonder if there's anything I can do about it. So those are the five stages of pre-foreclosure grief. And you can see this is a problem for people, right? This is a real problem for people. Kind of what we're looking for as real estate investors. Who can we go out there and solve these problems for?

And in exchange, get some equity for it. So this is a real service that you're providing for people. Otherwise, they're going to lose their property. and they're going to have their credit destroyed. They're going to have to basically start over. It takes a long time to restore that. And they're going through these five stages of grief. Like, they're really having some problems mentally.

They're probably losing sleep that's affecting their personal life, affecting their work, maybe affecting their family life, God forbid. And so that's where you step in. So they are going to be looking for somebody that can help them. So, Jess, if before you start knocking on the doors and it's going to do something for your confidence level that we know, the person most likely going to work with you and sell their house to you is going to be someone that believes that you can truly help them. The best way that I've ever found to show somebody that you can actually help them and prove

to them that you can help them is by actually helping them. So I think the first step into getting your confidence level to a place where you can go start knocking on doors and starting being effective is you've got to understand the foreclosure process in your market. that's what they're going to want the most. They're going to want help with that. So just going out by and knocking on doors and saying, hey, I can buy your house. That might not be that helpful.

I mean, certainly lightning can strike and you'll probably get some here and there where that'll be down for it. But if they're going through those five stages of pre-foreclosure grief, you kind of have to catch them on stage five for that strategy to work. But if you can show up and you're being helpful and you're showing them that you're going to be helpful by actually helping them, you can create that relationship and get more deals in those other stages. And just understand every homeowner is going to run through those stages at different speeds at different times. And I mean, some people run through all five stages on the final day.

And that happens. And other people will all go through it on the first day, but most of them are going to be spread out. And you just can't predict how that's going to happen. But if you understand those five stages of pre-foreclosure grief, then by being helpful, it's going to be a better approach. You're not going to be so scared about what to say. And you know that you're actually extending a service. You're going to feel better about yourself,

not like you're stealing someone's house. And so the four steps in the foreclosure process, they're kind of the same in every market. So the four steps in the foreclosure process. And these steps are going to be pretty consistent in every market, but they're just going to have a different timeline and different guidelines and how they are approached in the market or how the governing bodies manage them.

So the four steps in foreclosure. So number one is the notice of default. This is where the notice is publicly displayed that this person has missed a payment. And this is typically where names and addresses and phone numbers will start appearing on the marketing list that you're acquiring. Step two is the legal filing.

So if the homeowner does not pay off the amount, amount passed due by the stated deadline, the lender may elect to proceed with that actual foreclosure. Step three will be the notice of sale, of the foreclosure sale. So the bank has been unable to resolve this with the homeowner. So now they're like, okay, we're going to sell it. And typically this is after between 90 and 120 days is when this will actually happen. But like I said, it's going to be a little bit different for each market.

So you have to know your market. And then the fourth is the actual public sale. So once it reaches the public sale and that property gets sold, all of a sudden, there is no opportunity for you to buy this directly from the owner anymore. So that window has closed and you could go to the courthouse steps and buy it on auction steps or wait until the bank takes over and assigns it to a real estate agent and buy an REO. But for the pre-foreclosure, you've got to get this solution for the seller before these four steps. So, Jess, that's what I'd recommend is go and understand how the foreclosure process works in your market, and then just be prepared to help people. That's going to be the best way. It's going to give you some confidence.

It's going to relieve some anxiety off of you being afraid of what they might say, because if you show up as someone that's generally there to help them, then you're going to find a lot more people receptive and probably people a lot more willing to work with you. All righty. So, by the way, if you're serious about your real estate investing and, And generating leads is an area that could be improved on, and this might be a strategy you want to take on. Then go ahead over and check out lead machine or lead machine architecture. It's the five building blocks to building any of the generation strategy, even this one. So head on over to epic lead machine.com and get a copy. All righty. So here's what we know.

Pre-foreclosures are a very good proven source of lead generation. It is free to do. It's why it's appealing. And it's very lucrative is why it's appealing as well. But before you begin, know the foreclosure process for your market. set your expectations up appropriately. You want to understand those five stages of the pre-foreclosure grief. You want to understand that it's going to be a numbers game.

You're going to need some skill. You have to work through this. But I think a really good shortcut or an expediter of this process is to understand the pre-foreclosure process in your market and be and show up as someone that's there to help. Like I said, the best way to help somebody is to show them that you can actually help them by actually helping them. And then just work the repetitions. And this can be a great strategy for you. But if you can't accept those, then you don't have to choose this strategy. Don't do it.

There are plenty of ways to generate leads. And many of them are still free. And I think the best lead generation strategy is the one that you're going to do consistently and you're going to stick with and you're going to be persistent with it. And the one that's going to be is either one, one that you like to do or two, one that you're really good at already or you have some experience in. If this scares the crap out of you and it's stopping you each day and you're paralyzed to take action and you're beating yourself up about it, then look for something.

else. All righty? So if that's you and you want to grab a copy of our lead machine architecture, you can get a copy of it over at epic leadmachine.com. Well, good to see you all. Let's go ahead and crush this week. And I will see you very, very soon. All right, take care.

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