Part Tres
Her phone is constantly ringing. There are buyers and sellers to manage. There are the people renovating her homes and managing her rentals. There is her title company rep, who feeds her information on homes as she knocks on doors.
“I am at 120 miles per hour every day,” she said.
Sandoval used to use her own cash to buy houses. Now, she relies on private loans and partners who put up money. She will typically pay between $425,000 and $650,000 for each home, whether the seller is in distress or just looking for a convenient outcome.
Last year, Sandoval bought a Los Angeles house from Scott Draper, a lawyer, for about $480,000. The house had been occupied by a family member and had fallen into disrepair. A rat infestation had become so bad that Draper was advised not to linger inside.
He didn’t want to sell it in the open market because of its poor condition, and he wanted to get rid of it quickly. Sandoval offered him a higher price than any other investor. She put in about $90,000 of renovations, including a new foundation and new windows. Then she sold it for $775,000.
Pounding the pavement
When a bank serves a notice of default to a homeowner, it starts the clock on a foreclosure. The lender might set a date to take the home and sell it. But it can take months or years for a foreclosure to go through.
That opens a window for Sandoval. She finds homeowners through searchable databases designed for real-estate investors. The databases pull in default notices, which are public record.
She spends about two days a week knocking on doors. Most people don’t answer. So instead, she leaves envelopes, each with a flier inside that reads, “DON’T LET THE BANK TAKE YOUR HOME! STOP FORECLOSURE!” in English and Spanish. At the bottom is her picture, plus her contact information.
One time, a woman told her she must have the wrong address. As Sandoval walked back to her car, the woman’s husband ran after her and asked for her card. He apparently hadn’t told his wife about the missed payments.
Sandoval’s investments are generally in low- or moderate-income areas across the Los Angeles region. Sometimes the sellers have an agent or lawyer, sometimes they don’t.
Sandoval recently turned her attention to Compton. Incomes there are lower than the national average and poverty is higher, according to census data. One day in late January, she made the 14-mile drive there from her office in Pico Rivera with two colleagues.
Sandoval estimates that for every 100 doors she knocks on, she ends up working with about 10 homeowners.
The first address was in a low-rise apartment complex. Sandoval rang the doorbell. Someone inside turned the TV down, but no one answered. Sandoval left an envelope.
At another house, envelopes were already stuck in the door. “We’re not the first ones,” Sandoval said.
The day was winding down when Sandoval approached a house with cracked windows. Someone came to the sidewalk, displeased to be getting another visitor who was interested in the house. She said she was the owner’s daughter, and that they weren’t going to give up. “Like Jesus, I’m hanging on,” she added.
She and Sandoval talked later on the phone. Sandoval thought the situation was too complicated and decided against trying to buy. She estimates that for every 100 doors she knocks on, she ends up working with about 10 homeowners.
As Sandoval drove home that evening, she was already plotting her next trip.
Write to Ben Eisen at
ben.eisen@wsj.com
