Brief Summary
This video outlines eight strategies for assisting individuals facing pre-foreclosure, emphasizing problem-solving and building relationships over immediate profit. It highlights the importance of offering solutions like personal loan guidance, realtor referrals, and loan modification assistance to establish trust and secure deals. The video also touches on helping homeowners find renters, though this is less commonly successful.
- Focus on solving problems for pre-foreclosure individuals rather than pushing for quick deals.
- Build relationships with realtors to create a referral network that benefits all parties involved.
- Understand loan modifications to provide valuable assistance to sellers and potentially acquire properties with favorable terms.
Introduction: Navigating Pre-Foreclosure with Empathy and Solutions
The speaker introduces eight methods to assist individuals in pre-foreclosure, noting the importance of providing various options beyond just a cash offer. Pre-foreclosure situations are complex, with homeowners receiving numerous solicitations. Securing a deal requires establishing that your offer is the best solution for their specific problem. The ultimate goal is to solve their problem, whether through a cash offer, rental portfolio, or fix and flip.
The Core Principle: Solving Problems Ethically
The speaker emphasizes that the primary role is to solve problems for sellers. Without a genuine solution, making money ethically is impossible. He cautions against pressuring sellers and shares an example where he referred a seller to a realtor instead of pushing for a deal, maintaining a connection for potential future opportunities.
Offering Personal Loan Guidance
The initial strategies focus on helping people, even if it doesn't lead to immediate profit, to stay in conversation and stand out from competitors. One approach is to offer guidance on securing personal loans. A sample text message is provided, suggesting assistance with personal loans or other help to stay in their property. The goal is to coach them on how to approach friends and family for loans, opening up deeper conversations about their situation. While the speaker rarely provides direct loans, offering the possibility can reveal the seller's true motivations and circumstances.
Realtor Referrals: Building Mutually Beneficial Relationships
Referring sellers to realtors can be a valuable strategy, even without an immediate financial gain. Building a strong relationship with a realtor can lead to significant returns, as demonstrated by Jamil's $1.5 million income from a single realtor relationship. Realtors benefit from the listing opportunities, and in turn, they may refer properties needing renovation back to the investor. This creates a mutually beneficial cycle. Providing listings to realtors positions you as a value provider and gives you real-time feedback on the property's status.
Loan Modifications: Assisting with a Complex Process
Loan modifications, now easier than in the past, can be a powerful tool. They can be used creatively in finance to modify a loan, put all debts and arrears on the back of the loan, and take over a house subject to without any arrears. A loan modification involves adding missed payments, fees, and penalties to the loan balance and resetting the loan term. Many people who apply for loan modifications are denied, often due to incomplete paperwork. Offering assistance with the loan modification process can build rapport and differentiate you from other investors, potentially leading to deals when the modification is rejected.
Rental Assistance: A Less Common but Still Viable Option
Offering to help find renters for the property is another strategy. While the speaker admits he has never physically helped someone find a renter, it opens a conversation and provides an option for the homeowner. Most pre-foreclosure situations involve owner-occupied properties, making this option less common. However, it can be a way to cross off all the list and explore all possibilities. The speaker navigates the conversation by asking if they need help finding a renter and exploring why they might not want one.
Conclusion
The video concludes by encouraging viewers to subscribe for daily content and join the live show every Wednesday for personalized question answering.
