Amidst a sluggish real estate market, one business idea has become profitable for many. Real estate companies, mortgage brokers and investment firms have found a way to capitalize upon the increase in home foreclosures by offering foreclosure tours. Foreclosure bus tours allow potential investors and home buyers to preview various foreclosure properties in just one day.
How Foreclosure Tours Work
Foreclosure tours are somewhat like going on a real estate field trip. A group of 15 or so potential home buyers load on a bus to travel around the community to view selected properties from a foreclosure list. Some realtors or mortgage companies will offer the tours free to their clients/potential clients, while others may charge a fee of $20-$50 per person for the tour. Tours typically include consumer education, showings of around a dozen homes and a snack or box lunch. After the tours, participants are given the opportunity to meet privately with a mortgage representative, realtor and possibly even a home improvement/general contractor.
Profile of a Foreclosure Tour Business
Partners Roger Robles, Tim Delapaz and Garret Wadford recently joined together to form Jax Foreclosure Bus, a foreclosure tour business that serves the Greater Jacksonville (Florida) area. Our friend recently met with Robles to discuss the success of Jax Foreclosure Bus.
Robles, Delapaz and Wadford all have backgrounds in real estate sales and investments. When sales became slow, the partners sought to find a new way to attract new business. Foreclosure bus tours was their answer. Jax Foreclosure Bus conducts tours once every two weeks. Each tour provides education concerning mortgages, home renovation, purchase agreements and much more. About 20 people participate in each tour. Jax Foreclosure Bus tours are offered free to registered participants, and a complimentary lunch is provided. Tours last about six hours.
According to Robles, the bus tours have helped considerably in the expansion and success of their real estate investment firm. In addition to an increase in home sales, the partners have been able to help several families avoid foreclosure. In the future, the partners hope to franchise their tour bus business and develop real estate consumer education programs.
Summary of the Foreclosure Bus Tour Business
Foreclosure bus tours have been launched in almost every size community. They are especially popular in distressed areas such as Florida, Nevada, Michigan and California. With an increase in foreclosures, these businesses will probably continue and even grow in the near future.