An elite group of investors all over the country is reaping huge profits from the subprime mortgage crisis in pre-foreclosure investing. What do they know, and what do they do differently from everybody else who is hurting? The answer is simple: It's in their Business Model. - "Business Model" here means: When and how do you get paid, and how much time, energy and money do you have to invest to get there?

Let's take a look at the systems of Pre-Foreclosure investing. First, your Pre-Foreclosure business needs a lead generation system. You generate leads by targeting home owners in a specific situation: Pre-Foreclosure.

All these leads have something in common: The home owners are very motivated because their situation is forcing a sale. Also, these homes are not yet tagged by appearing on a list of public records, so the competition for their attention is less - in a perfect world nobody knows about them until they call you.

The second vital part to your pre-foreclosure business is your "exit system". This can be either one or a collection of exit strategies that you apply to the leads that are coming in. An "exit strategy" is simply a way of turning the lead into a payday, or a "sale". Your "exit system" is a concise and predictable way of answering the question: "What do I do with this lead?" It leaves no room for you to guess.

The collection of exit strategies you use in your pre-foreclosure business could be as simple as referring the lead to a mortgage broker for a refinance, or to a real estate agent if it makes sense to list the house.

Now, don't get me wrong here, I'm not suggesting you make these exit strategies the main goal of your pre-foreclosure marketing, but getting a marketing fee of $500 or $1,000 from a mortgage broker sure beats throwing the lead in the trash just because they don't want any of your other solutions! And these paydays will happen fairly quickly for you, as well as adding up over time.

Other exit strategies can range anywhere from quickly selling the property to another investor, "wholesale", to holding on to the house for cash flow and your own long term wealth building - or even move in yourself if that fits your lifestyle and needs.

And this is where the "Business Model" comes in. You see, most beginning (and even a bunch of seasoned) pre-foreclosure investors make the deadly mistake of being "foggy" about their exit system. You have to get a clear vision of what you CAN do, what you WANT to do, and how the different exit strategies impact your business model: When will you get paid and how much time, energy and money do you have to put into the system to get there?

Extremely successful investors like Robert Allen, Robert Kiosaki or Bob Proctor ("The Three Bobs") focus on specific strategies AND set up "Multiple Streams of Income". This is a business model that you can fuel beautifully with Pre-Foreclosure leads - that's where the power is!

Use your Pre-Foreclosure leads to generate fast wholesale paydays for cash flow. Once you have that going you hold on to some properties that you cherry pick for long-term wealth building (without dropping the ball on the wholesale exits!) - And at the same time you turn a bunch of trash into cash by sending lots of leads that don't fit your wholesale or buying criteria to your referral network.

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