Pre-foreclosure Markets Set to Ignite: Can Your Business Take the Heat?

Officials move to Stem Foreclosure Tide
Since government sponsored financial services enterprises (GSEs) Fannie Mae and Freddy Mac announced a foreclosure moratorium through the holidays in November, government efforts to stem the foreclosure tide have heated up in hard-hit states such as California, Connecticut and Florida.

It is likely that state and federal lawmakers -- and other officials convening in the New Year also are gearing up to take action to slow the foreclosure process. New and emerging policies in this trend are likely to give beleaguered homeowners some space to breathe -- and investors a vast open field of profit opportunity.

Keep Your Investor Eye on the Prize
There are some common-sense tactics you can use which are incredibly cost-effective to deploy in your business, such as ramping up your personal and real estate marketing efforts that can have a dramatic impact on your bottom line. Some require more effort than others, but the focus should stay fixed on preparing your business to thrive in pre-foreclosure or whatever markets you choose.
Often, the most challenging part of a business invigoration plan is getting started.

When you create independent, self-sustaining mechanisms to fill your pipeline with a steady stream of real estate marketing leads, you'll dramatically reduce your workload and experience greater opportunities to advance your business.

The techniques listed below will flood your pipeline in pre-foreclosure, or virtually every RE market, regardless of your skill level. They're proven-effective tools to make real money in real estate.

Get Involved
The best way to learn anything is to learn whatever you can from mentors and peers, then turn around and teach it so someone else. Creating your own cooperative professional learning network is a great way to maximize your knowledge — and your resources.

Bolster Your Networking Skills
There are legions of real estate agents out there right now who know absolutely nothing about short sales. If you learn to anticipate and help solve their problems using the right techniques and strategies, you, the agents and the homeowners all win. Plus, banks, not grizzled by foreclosure losses salvage much-needed liquidity.

An added bonus is that real estate agents, who control about 75 percent of the action in the housing market, will remember you and start sending deals your way before the competition even knows they exist.

Forge New Relationships with Mortgage Brokers
Many brokers have taken huge hits in souring markets and are opening up to new possibilities for boosting whatever business they can. Since the majority of homeowners in pre-foreclosure go to brokers first hoping to refinance and save their homes, building these relationships can give investors a very sharp edge with your competitors.

Raise Your Entrepreneurial Flag
Attract attention to your business and establish yourself as a major go-to contact in your market by giving away useful info that’ll make your contacts remember you. This simple approach lends credibility to your name, makes you memorable and fosters the development of trust in your business.

Deploy Direct Mail Real Estate Marketing
Use Direct Mail real estate marketing in specially selected areas to target and define the sweet spots in your markets. In terms of cost benefits and maximizing returns on your real estate marketing investment (ROI), Direct Mail is hard to beat.

Sending your messages repeatedly using the right media mix (choices include postcards and letters) and precision timing is called a "drip campaign." If properly implemented, this strategy is proven effective in filling your pipeline with the leads you need to reach your most lofty business goals.

7 Advantages to Direct Mail Real Estate Marketing
Besides maximizing ROI, Direct Mail real estate marketing offers a number of significant benefits to RE investors:

1. Targeting: A great list gets you the leads you need to build your business.
2. Personalization: Address your prospects by name and based on their needs.
3. Optimization: Test your offer, timing and success for enhanced results.
4. Accumulation: Build a database to laser target your markets.
5. Measurable ROI: Track your marketing dollars with confidence.
6. Scant Competition: Identify and penetrate niche markets, uncover better deals.
7. Can Be Outsourced and Automated: Costs are minimal compared to results.

Regardless of the options you choose to deploy in your business to fill your pipeline with the real estate marketing leads, it is important that you approach to new strategies with a plan and clearly defined goals.

Strategic planning is crucial for investors who want to cash in on pre-foreclosure, or any meaningful real estate market opportunities. By preparing now for what today's RE markets have in store for savvy investors, you're building a solid foundation upon which your business will grow and prosper.