I was going through my documents folder on my iBook and found this mini-ecourse on preforeclosures that I wrote some time ago. Although I am personally not actively pursuing preforeclosures but I do get emails asking questions about if i have any information about pre-forecloursures. So I thought why not! It was a 7 day course delivered via email so that is how i will put it up here for the next 2 days.

For hard core REO dealpers - you can skip but I would probably read - good practical lessons here all learned in the trenches, hands bloodies, nose to the ground!

Day 1 The Hunt For A Preforeclosure Deal: Be Local

If I had a dollar every time I told a real estate investor to stay local.......

Anyway, here it what i means,

“Be Local” is the cornerstone of my real estate investing game plan.
To target a area, preferably - one big town or four medium size suburbs and become the predominant force in buying and selling foreclosures in that area.

I don't want another “real estate investor” where I operate - I want the best deals, I want to be known and I want first dips on everything that is going into pre-foreclosure in those towns.

Secondly, once you start focusing on a smaller area instead of 45 suburbs, I can pretty much look at a house in 10 minutes without calling an appraiser or going into MLS tell you how much the house is worth.

How can I do it? Because I concentrate on a smaller area - I know the towns like the back of my hand, I know the values of 3 bedrooms and 4 bedrooms houses (these are the only ones I do - very, very easy to sell compared to 1 and 2 bedrooms).

So how do you pick up the area that you want to dominate?

These best area to pick up is either where you live or where you work - both ways you can find time to drive around and look at houses.

When I first started doing pre-foreclosures, I felt like going back to school - I knew what kind of houses i wanted to buy and deal - I drove for six weekends in a row with then girlfriend (and now wife) Nora and we had the best time - kind of like picnic in a car.

I am a big believer in convincing your spouse to believe in your plans and dreams about successfully running a real estate business.

I mean if you cannot convince your own loved ones to believe in you - it would be an uphill battle to convince an investor or a homeowner to believe you . Good way of doing is to instead of telling her or him the money you will make - tell them why do you want to do this - layoff proof your family, no more worrying about economy and recessions, send your children to the best schools possible, retire in style - convince them the same way you would if you wanted to get a loan from somebody.

O.K. got the area, preferably four towns to begin with - you need to put your research gear on . Jump to the internet and go www.realtor.com, this is pretty much as close to being on the MLS (Multiple Listing Service) as you can get without being an appraiser or a realtor.

Pull up everything that is selling in your towns that you pick up in 3/4 bedrooms range and see what is going on - I don't care about what price ranges you are looking at - pre-foreclosures are all the same. If dealing with big numbers make you nervous, stay within $150,000 - fastest deal price range you could be in .

Familiarize yourself with the houses in that price range - they have pictures there so see what kind of house you can get in that range - brick / vinyl, how many bedrooms, bathrooms, basement or not, colonial or ranch.

Know the area

Know the house that you can get in $225,000 and under price range.

Day 2: Smart Marketing Can Get You ONE Deal - Right Away.