Some call it a Foreclosure Bus Tour. Some call it a Real Estate Investment Bus. Others say that it's the real estate version of "speed dating."
Whatever it's called, the concept is to identify homes that have recently been foreclosed or have had substantial price reductions; get a group of people together; load them on the bus and tour the homes with the real estate agent (sponsoring the tour) and a lender. We have found that in some instances, a home inspector rides along as well.
When you read this article, you will find many different ways the tours are conducted and how lenders can get involved. Craig Reger, a real estate agent in Portland, Ore., shares exactly how he got started, how he screens prospects and properties and how he follows up with them.
Before we get into the interview, I want to share with you what other agents are doing throughout the country.
Some charge a fee to ride the bus. These range from $67 (which includes lunch) to free.
Agents require prospects to register-either online or they are personally screened by the agent before being allowed on the bus.
Some have lenders ride the bus to quote payments. Others include financing sheets for each home.
One agent offers a $10 gift card if the prospect shows up with a pre-approval letter.
Some are adding the bus tour registration link on their website when they list foreclosed homes.
Others include a home inspector. Since some of the homes need repairs, the home inspector is there to provide a rough estimate if asked to do so.
All require that the prospect sign an Exclusive Agency Agreement-that if they buy a home they viewed on the bus tour, that the agent is entitled to a commission.
Now for my interview with Craig:
Karen: Craig, what's your background?
Craig: I've been selling real estate for 13 years, for Hasson Realty in Portland, Oregon. When I first heard about the concept about a year ago, Portland had virtually no foreclosures. However, in 2008, the property values started to decrease and 10-to-5 homes a week were going into foreclosure. Timing is everything and the time was right-especially if you are the first in your area.
Karen: Where did you find the bus?
Craig: I bought it on Craig's List. It was an airport shuttle bus, which seats 15 people. I hired a designer to create a logo and instead of naming it the "foreclosure bus," I call mine the "real estate investment bus." You can see a picture of it on
However, my best investment was hiring a public relations firm to get the word out. It costs me $700 and within 30 days, I was able to get on three out of the four television stations in my community.
Karen: How do you decide which properties to view?
Craig: There have been 15-to-20 homes that hit the MLS every week. I preview each home before its added to the tour. While some of them are foreclosures, others may have had a huge price decrease. I also try to "group" them in certain areas, especially if I can find two or three in the same area of the city.
Karen: How many homes do you tour? What price range?
Craig: We tour an average of eight homes, ranging in price from $189,000 to $550,000. We do not tell them what homes they will be viewing until they arrive for the tour, because if they knew upfront, they wouldn't need me!
Karen: What's the registration and screening process you use?
Craig: Not everyone gets to get on the bus. I prefer to screen them myself. If they are looking for investment property, it might be better that I personally show them those types of homes. I'm looking for people who are truly interested in buying a home, regardless if it's a foreclosure or not. I ask them to register online and there are a couple of pre-screening questions that I ask when they register.
Karen: What happens during a typical bus tour?
Craig: Once they register, we send out several e-mails reminding them of the date and time. We ask them to be there at 8:45 a.m. on a Saturday morning (we have rolls and coffee) and we leave at 9 a.m. Within that 15-minute time frame, we give them a binder with all the homes we will be viewing and more importantly, a disclosure they have to sign that says that if they buy one of the homes they view on the tour, that I am entitled to a commission. I'm very upfront with them about this!
Karen: Do you work with a lender?
Craig: That's on my to-do list! I always have people asking me "what's the payment on this house" or "how much money do I need for a down payment" and it would be great to have a lender with me to quote rates and payments. In addition, I would love to include financing sheets in my binder, with different down payment scenarios and information about how to get pre-approved for a mortgage.
Karen: Do you have a follow up system?
Craig: I do send them a couple of e-mails-but I advertise this as a no-pressure tour. I figure that those people who are truly interested will contact me and that's what has happened.
Karen: Are they any mistakes you have made?
Craig: I should have gotten a lender involved sooner. I was not ready for the huge amount of interest and did not have a good system when I started. At first, I did not screen people nor did I have them sign a buyer's agency agreement. The bottom line is that while it's a great lead generation tool, we are also educating prospects on what's really happening in the Portland area and while driving from house to house, I explain the foreclosure process, things to look for when buying a home and why they need to get pre-approved for a mortgage.
One more thing, the bus is an excellent tool that I use with my past clients. We have done a wine tasting party, gone to college football games and let clients use it for kids' birthday parties. We have also co-sponsored some of the events with our lenders. Oh, and I also park the bus in prominent locations so it's also "silent" advertising for my team and me.
