First wholesaling campaign on Oahu, HI : Thoughts and detailed analysis
Hello fellow wholesalers,
As a rental property owner, I decided to venture into the mystical world of wholesaling. I wanted to spend about $3500 initially, track my progress, and see what I would come up with. Will send out to ~800 folks x 4-6 mailings. I will update this thread every month or so for learning and tracking purposes.
I am sending handwritten, yellow letters, to in- and out-of state absentee owners in a single zip code. The ratio of in to out of state is about 8:1. This area has a mix of great rental condos which I am intimately familiar with and lots of SFHs, which I am not totally sure how many are rehabs vs. turn key condition.
After nearly through the first mailing, here are the results:
1.83% response rate (person called me). 0.17% positive response rate (seller wanted to sell). 2.8% Return to Seller.
Does that RTS seem high to you guys? I knew this would be challenging but concerned at the lack of motivated sellers. The market is definitely hot here and so are the number of realtors per capita (everyone and their mother is/knows one).
Given the above, I would love to learn from the more experienced folks, maybe some words of encouragement, or when it would be a good idea to go to a different town assuming the above continues. I am aware that the margins in Hawaii are likely to be better, but I was under the impression I would be able to make more offers and help someone out, but can't really do that if so far few are interested.