What's Wrong...where's The Sellers?
I'm new to REI. I've been studying allot of material and have purchased one house (my current residence) with an investor who specializes in rehabs.
I'm focusing my attention on preforclosures. The problem is I haven't been able to find any motivated sellers so far.
This is what Ive been doing up for the past 2-3 months:
I work full time, but devote 2-5 hrs/week looking for a deal.
I've been getting NOD lists for my county and sending out letters offering to purchae the property and/or answer their foreclosure related questions. I get a new list every 2 weeks and there's an average of 12-15 new NOD's in each list (is this way too small a list to work from?). I mail out the letters and attempt to call on the telephone. I have had some decent phone conversations with a few people, but none with those wanting to sell, just talk, usually about the hassle of their ordeal and how they worked it out.
I have an "I buy real estate" type ad in a local "penny saver" classified ad magazine but have only received one call in the month it has been running from a non motivated out of state seller who was just curious. Other than that nothing.
I've scoped out a few "ugly houses" in my neighborhood and have tried , to no avail, to find motivated sellers there. I haven't enlisted any birddogs yet, but will probably try this soon in addition to the above.
I'm starting to wonder if I'm in the wrong area, or if I'm going about it all wrong. My area is on the central CA coast. Prices are relatively high around here, but the market is still good. People are getting out of their NOD problems somehow, but apparently not with my help.
Is the area I'm focusing on (my county) too small considering it only yields 20-30 NOD's/month? Is their anythiing obvious I'm missing here? Do I need to just keep on chugging?
I've shyed away from forclosure auctions because my county requies 100% at the sale (which usually opens at $150-200K). I would consider bidding once I have a little more money to work with.
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