If you want to learn how to build a real estate business, you probably already know that focusing on pre-foreclosures and distressed properties is an excellent option. Homes in pre-foreclosure often have very motivated sellers. The people who own these homes often owe money on their mortgages and often must sell in order to preserve their credit rating and in order to get some equity from their home. Focusing on pre-foreclosures allows you to buy quality properties at a lower cost and allows you to then renovate and resell these properties at profit.

The problem is that every other investor is also focusing on pre-foreclosures, and this creates a lot of competition in the marketplace. Worse, with the current recession, there are more foreclosures entering the market. Many parts of the country are setting foreclosure records and more foreclosures are expected in the near future.

Finding foreclosures can be a full-time job. You could spend hours every day sifting through pre-foreclosures, public records, foreclosure listing sites, and government web sites. Obviously, doing all this research is very time-consuming and takes up time that you could spend promoting your business, or making deals. Worse, you could invest a lot of time and effort finding the perfect deal, only to find that another investor has beat you to it.

If you're just trying to figure out how to build a real estate business, it might be easier for you to work backwards. That is, rather than going out and trying to find distressed properties and foreclosures, why not have people with distressed properties come to you? Rather than spending all your time prospecting, why not encourage people in financial distress to come to you through ads and marketing? You can use business cards, classified ads, mailers, yard signs, flyers, and Internet ads to let people facing foreclosure know that you can help them. This can be a much more effective strategy than trying to contact people who are facing pre-foreclosure and who probably have many investors approaching them.

If you want to advertise to people who are facing foreclosure, you will need to include several things in each of your ads:

1. A hook that grabs you readers. Make sure that you use a graphic or a headline that is short but captures the readers’ attention.

2. A big promise of hope. Explain in your ad – in just a few words – that you can help someone who may be losing their home.

3. A call to action. Explain what you want the ad reader to do – visit your web site, for example, or call a toll-free number.

Each of your ads -- whether they are on the Internet or in print -- should offer people facing foreclosure helpful information that can really assist them. People facing foreclosure are on an emotional roller coaster and are also looking for ways to save their homes and their credit. They want a fast solution. Your ads should promise that, and should outline exactly how you can help.

If at all possible, direct your readers to an online web page, online web chat, or pre-recorded free telephone recording. The idea is to have your readers do something that is very non-threatening. It should be perfectly anonymous and it should reassure the reader that he or she will not be subjected to a hard sell. Getting your readers to call you isn't always the best method, because someone facing foreclosure may be too embarrassed to call you directly, and may fear a hard sale from yet another zealous investor. Make sure that you emphasize that your information is free and is perfectly anonymous.

Once your readers contact your online web chat, prerecorded free telephone message, web page, online course, video, or whatever you've set up, they should be told exactly what they can do to save their home. Offer seven or eight techniques that they can use to save their property -- and use specific examples. Suggest that if none of these examples work, the person facing foreclosure can contact you and you may be able to purchase their home. Also, be sure to mention that if the person facing foreclosure has any questions about how to implement any of the strategies you mention, he or she should contact you.

If you're going to figure out how to build a real estate business, you need to figure out how to find the best leads. While many people suggest researching leads and looking for pre-foreclosures among directories, public records, and government web sites, such a process is very time-consuming. Marketing your services and having people come to you when they're facing foreclosure can reduce the amount time you spent prospecting, and can help ensure that more qualified people come to you before they contact other investors. Informing homeowners on techniques to stop foreclosure and informing them about your services can help you grow your business and can help you assist those who are facing financial distress as well.