Pre-Foreclosure Investing Strategies: How Real Deals Close From Door Knock to Sold

Meet the Investor: Daniel Kochanowicz’s Pre-Foreclosure Playbook (Pre-Foreclosure Investing Insights)

In this episode of the DealMachine Real Estate Investing Podcast, Daniel Kochanowicz shares exactly how he finds, negotiates, and closes pre-foreclosure deals, step by step. Want the full story in his own words? Watch the full interview below:

Pre-foreclosure investing often looks flashy on social media. The day-to-day work, though, is much more hands-on and human. In this deep dive, we follow Daniel Kochanowicz, a full-time real estate investor who focuses on helping distressed homeowners in Kansas City and St. Louis.

His model is built on face-to-face conversations, problem-solving, and a commitment to helping people take control of their outcomes.

Dan has been active in real estate for five years, spending the last three fully immersed in pre-foreclosure acquisitions. His team includes door knockers, a transaction coordinator, a dispositions specialist, and virtual assistants who handle lead sourcing and data. They focus on speed, certainty, and people-first solutions.

From First Deal to Full-Time: Starting the Business

Dan's journey began while still working in sales and partnering on flips. His first big win came unexpectedly. While scrolling through a local Facebook real estate group, he saw a property in Liberty, Missouri listed for $35,000 cash. Without hesitation, he and his partner drove to see it and made an offer, on a paper plate. They retyped the contract later and closed in a few days.

They resold the property in under a week for $50,000, earning a $15,000 spread. That deal showed Dan the power of moving fast, managing risk, and working creatively with what you have even if that means writing up your first contract on improvised materials.

This success gave Dan the confidence to go full-time. He left a stable job earning $80K–$100K annually. Though he had a few rental properties and strong cash flow from house hacking, the first few months were tough. From October to February, he worked relentlessly before landing his first post-job deal.

How Dan Finds Pre-Foreclosure Leads and Motivated Sellers

Dan relies heavily on pre-foreclosure lead generation strategies that minimize cost and maximize impact.

Door Knocking and Skip Tracing Tactics

• Pull public records from county websites to identify at-risk properties
• Use skip tracing tools like DealMachine
• Show up in person, knock on doors, and follow up by phone or text
• Speak to neighbors when direct contact fails

These methods bring Dan face-to-face with motivated sellers, though the road isn’t easy. Many owners are overwhelmed, and getting through the front door often takes weeks of follow-up.

What He Actually Says at the Door (Door-Knocking Script for Pre-Foreclosures)

Dan leads with empathy:

"Hey, I’m Dan. I’m just here to help. I saw the bank might be giving you some grief and wanted to share options to help you stay in your home."

He presents paths, not pressure:

• Reinstating the loan
• Requesting loan modifications
• Filing for bankruptcy
• Selling via cash or subject-to deals
• Offering short leasebacks to give families time to move

He positions himself as a backup plan. The goal is clarity, not coercion.

Working With Banks to Delay Foreclosure Auctions

Deals often come together just days or hours before a scheduled auction. Dan’s team immediately contacts the bank’s loss mitigation department to request a short postponement, often backed by proof of funds and a signed contract. They typically ask for only seven extra days, which can make all the difference.

It’s not easy. Initial calls go to frontline staff who often lack the authority to make decisions. Persistence is key. His assistant now spends hours each day on hold, pushing deals forward.

When extensions fail, Dan refers homeowners to legal professionals who can file bankruptcy to stop the sale. He never gives legal advice but knows how to connect owners with help.

Helping Owners in Crisis: The Human Side of the Deal

What do distressed homeowners care most about? Most distressed homeowners are already facing damaged credit. Their biggest concern? Where will I live, and how will I get my stuff there?

Dan’s team provides:

• Apartment search assistance
• Lease signing support
• Moving trucks and logistics
• Emotional guidance and check-ins

Money is rarely the top concern. Practical help is. Dan’s model offers certainty in uncertain times.

From Contract to Close: Speed, Certainty, and Control

Early on, Dan wholesaled under tight timelines, often with occupants still in place. That approach caused deals to fall through. Now, he and his team aim to close as the buyer within three business days. This eliminates last-minute chaos and gives them full control over access, timeline, and resale strategy.

If a buyer seems unsure, Dan walks away and closes the deal himself. His motto: Certainty is the product.

Real Numbers, Real Deals, Real Challenges

• 2 out of 3 signed contracts close.
• Common deal-killers: title issues, liens, and owners solving the issue on their own.
• Surprise costs from COVID-era relief programs often wipe out expected equity.

Even with equity prescreening, Dan’s team often finds hidden challenges. The hardest step? Getting face-to-face. Once that happens and equity exists, the close rate is about 1 in 2.

Scaling the Model: Systems, Team, and Expansion

The Kansas City base supports a lean but effective team:

• 4 full-time door knockers
• 1 transaction coordinator
• 1 dispositions specialist
• 4 virtual assistants

With limited pre-foreclosure volume per city, expansion is the path to scale. St. Louis is already operational, and more cities are on the horizon. The long-term goal: a $100M business with repeatable systems in 10–20 markets.

Common Misconceptions About Foreclosures

Social media often claims a foreclosure wave is coming. Dan sees the opposite. Lenders are flexible with owners who engage at all. The real issue? Apathy.

“It is very hard to get foreclosed on in this country. If you try at all, the banks want to work with people.”

Many owners don’t open their mail, ignore calls, and avoid help, until it’s almost too late.

Practical Advice for Pre-Foreclosure Investors

• Lead with solutions that help owners stay.
• Use county records and skip tracing tools.
• Bring proof of funds and ask banks for 7-day extensions.
• Expect last-minute signings and emotional conversations.
• Screen for equity but assume hidden debt.
• Work with reliable cash buyers or close deals yourself.
• Offer post-sale housing support and logistics.

Final Thoughts: People Over Profits

Dan’s path isn’t about hype. It’s about long days, real people, and second chances. He stays with families through the transition, offers clarity when everything feels chaotic, and believes deeply that investors can succeed by leading with service.

He also pays it forward. Now 25, he mentors younger investors, just as others did for him.

Frequently Asked Questions About Pre-Foreclosure Investing

What is pre-foreclosure investing and how does it work?

Pre-foreclosure investing involves buying properties from owners who are behind on mortgage payments but have not yet lost their home to foreclosure. Investors step in to offer solutions before the property reaches auction.

How do I find pre-foreclosure properties to invest in?

Use public foreclosure notices from county websites, skip tracing tools, and direct outreach like door knocking. These high-effort methods often uncover the most motivated sellers.

What should I say when approaching a homeowner in pre-foreclosure?

Introduce yourself with empathy. Start with, “I’m just here to help.” Offer options like loan reinstatement, modification, or sale. Always present a path, not pressure.

Why do many pre-foreclosure deals fall through?

Title issues, unexpected liens, or homeowners resolving the issue independently are common deal-killers. Building trust and acting fast improves outcomes.

Is now a good time to get into pre-foreclosure real estate investing?

Yes, but success requires persistence, empathy, and fast action. There’s no wave of foreclosures, but there are always owners in need of help and clarity.