Any real estate investor would know that, in the niches of real estate business, the hidden foreclosure market is one that contains the biggest deals. But while it may have the biggest deals, the foreclosure market is very competitive, which is why in general investors stay away from them.

But there is still a way to get deals in the foreclosure market without having to fight it out. All you have to do is look for that chance where you can convert a lead into a deal, that opportunity which actually has always been there.

The first thing you have to remember is this: Every lead is sacred.

Regarding foreclosures, you will find that people will do either of three things:

1. Pay back and escape foreclosure
2. Find a buyer
3. Claim bankruptcy

Most would choose the third option and claim bankruptcy. And what most of the real estate investors would do is to stop following up on these properties. Foreclosure has stopped, after all, and nothing can be gained from it anymore.

One thing that you have to realize, however, is that most people who claim bankruptcy don’t always stay bankrupt. A lot of reasons can be found for a person to be removed from bankruptcy, the primary of which is that they cannot comply with the terms of the bankruptcy. And when they’re pulled out of bankruptcy, foreclosure would start all over again.

This would be the chance for real estate investors to get in the hidden foreclosure market and get on top of the competition — the foreclosure gap. The foreclosure gap can be referred to as the time when the foreclosure has stopped because bankruptcy was claimed to the time when foreclosure starts again because of the removal from bankruptcy.

Every lead is sacred.

If the general population of real estate investors has dropped leads that led to bankruptcy, you can be among the few of those who’ll try a different tactic.

Follow up on the lead even if the person has filed for bankruptcy. You can send cards or notes that you will still support them in case they’ll need a hand in the future. In the end, when the bankruptcy claim has been lifted and the foreclosure starts again, you will be among the very first to be called in to get the deal done.

The key here is to continuously build a relationship with your leads. While giving yourself a lot of openings and a lot of chances, you’re also giving them a way to call you when they’ll be undergoing for a foreclosure again.

The situation has also become a little ironic in this case. From a market wherein there is a lot of heavy competition, you have actually turned the tables around and found yourself in a niche that has no competition at all! This is because almost nobody follows up on these “bankruptcy” cases.

Every lead is sacred. The hidden foreclosure market is proof of that.

After months of working as a realtor of abandoned properties, you’ll realize that driving down streets and looking around just won’t cut it. You will find that you will only be wasting your time, money, and energy looking for abandoned properties when you can do so much more with less!

So maybe you made an ad, put up some fliers, and set up some posters. But think it over again. What else could you do with the same amount of money? What if there was another way wherein you could have used your budget better and wisely? Would you have still gone for newspaper ads and posters?

Maybe you won’t, because there is one way where you can hit not one, not two, but three birds with one stone! Not only will you be able to advertise your business, you’ll also be able to find customers and abandoned properties. Plus, you won’t have to put in much effort looking for abandoned properties on your own!

How’s that? How do you do that?

Let’s say you’ve set aside $200 for your advertising costs. You could have an ad and some posters made with these. But the disadvantage of this strategy is that you may not be able to reach your target market. Not everyone is interested in reading about real estate, especially not about abandoned properties. What’s more is that your target market is not the only market you have to reach to garner customers! A passer-by can just point you to an abandoned property he or she knows of, and he’s not even part of your market.

Another disadvantage of this strategy after you’ve spent your $200, there’ll be nothing more you can do to get more clients. What happens when that ad or poster is gone? You’ll have to make new ones, and that’ll be another hole in your pocket.

Now try this.

First, make some forms wherein you can generate information about an abandoned property. Make sure you get the name of the person who refers you to that property, the location of the property, and other information.

Then get your friends, neighbors, and relatives. Ask them for a little favor. All they have to do is give the forms to their acquaintances and see if they know of any abandoned property around the city.

Here’s the catch for them: For every lead about an abandoned property, the person gets $10.

Not only will that give some motivation for people to look for abandoned homes for you, you’ll have many of them help you look for abandoned properties at the same time! This will certainly help you with your time, your gas, and effort. It also optimizes what you can do with $200.

Do the math: With $200, you’ll be able to get 20 leads. Surely, these leads will give you many sales and big profits, and when the profits are in, your $200 will be just a small thing. You don’t have to scratch your head thinking over a catchy title for an ad or flyer. All you have to do is generate information by giving forms to people and offering incentives.

Another benefit of this strategy is that it still focuses on the one idea that’ll generate you more clients: You got abandoned properties coming at your way! While giving off forms and incentives, you’ve also spread the word that you’re investing in abandoned properties, properties that many owners no longer want to own!

In the end, everyone wins. You got to advertise, your leads get some cash for the information, the owner of the abandoned property is rid of the burden of having a property that will only cost him mortgage payments, the property gets sold… and you get a big profit!

Picture this: a two-floor building looking decayed with faded brown paint, windows barred by planks of wood, lawn with grass at least 5 inches tall, bushes in a corner that has grown and never been trimmed, with no one staying in it.

What would come to mind as you drive down a street and see a building like this?

People would think, “Oh, it’s a rundown building with no one in it. Just ignore it,” or “That’s not our problem, leave it alone,” and other such thoughts. But as a real estate investor, you should be thinking, “Hmmm… How much will I get from this?” and it blossoms to another thought, “This’ll be a big profit for sure!”

Now why is that? What could you, investing in real estate, possibly do with an abandoned property that no one would want? Even the owner’s not interested in it anymore. How could something like this reap you a big profit?!

Normally, what someone would do to an abandoned property would be to fix the property up and let the realtor sell it. But the problem comes when there’s no money for the repairs. What happens is that the property is left as it is, and of course no one would want to buy a property that’s obviously not properly taken cared of and abandoned.

People may think that abandoned properties no longer have any value and is not worth the time and effort. But that is absolutely not true! Abandoned properties are one of the sources of big profits in the real estate industry!

Point # 1: There are many abandoned properties around the country.

A lot of properties are now vacant and being abandoned. These properties include condos and apartment buildings. What’s more is that they’re spreading everywhere. The city is slow to get rid of vacant buildings and abandoned properties. Some owners just don’t know what to do with them anymore and just leave them alone while paying for the property’s mortgage.

Point # 2: There is pressure on the owner to sell the property off.

As stated, some owners don’t know what to do with their abandoned properties. And the longer they hang on to the properties without doing anything about them, the more the pressure comes to them. There’s pressure from the neighbors; the owner has to fix the property because the abandoned property is just bringing the neighborhood down as it is with its unclean and broken setting. There’s also pressure from the government because a certain level of safety and cleanliness has to be maintained in every neighborhood. And abandoned properties generally do not add up to these standards.

Point # 3: Abandoned properties do not generate any income.

They don’t. What is worse for the owner is that he or she still has to pay the mortgage expenses of that property. Relieving him or her of the burden of having to pay the mortgage of a property that no longer gives him income is one of the good things you as a realtor can do!

Point # 4: There is very little competition!

No one can say if this fact stays as a fact in the future. But presently, it is. There is very little competition in the niche of abandoned property selling. Very little people care about abandoned properties, after all. Even the owners think that the properties are just a burden.

Point # 5: You’ll be making more money, not to mention have more free time on your hands, when working as a realtor rather than sticking to your present job!

Tired of waking up and getting out of bed everyday early in the morning just to cram and go to work? Are you currently fighting with traffic just to get to work on time? Are you required to work at least eight hours a day? Do you have a superior office that doesn’t even appreciate all the effort you’ve put in the job? And just how much is your salary right now?

Answer the questions and compare your answers to a realtor’s. A realtor would answer: They’re all irrelevant. Why? Because a realtor works according to his own schedule. No work hours, no superior officer, not much pressure with traffic… and a very satisfying salary.

All you have to do when investing in abandoned properties is to drive down streets, look for an abandoned property, find out who the owner is, make the deal, do the repairs, analyze the price, and then sell it! All these can be done at your own pace and at your own time.

So what could be a better deal than investing in abandoned properties? Not only are helping the city clean up abandoned properties and helping others to find new homes, you’re also putting money in your own pocket! And it’s not just a small sum.