Jeryll congratulations on the early success! Keep grounded and realize that you may have reached a fluke response rate for your first campaign. I was pulling those types of response rate but that died off to less than 3-5%. Consider using Jerry Puckett when you're ready to scale up.
I have some tips for you to build off others mentioned here before:
1. Get your comps and values. Find out if your state shows accurate sales data for free, if not ask an agent to help you and let them know you're building the relationship in the long run and will eventually use them to buy and sell on the MLS with little work on their side. Texas is a non disclosure state so I must use an agent.
2. Get your script ready. Build a rapport if you can, listen to their problems, ask them why they're selling, ask them address, number of rooms, bedrooms, if there's a garage, how many stories, how many sqft (many don't know so tell them you'll figure it out from county assessor/appraisal website), have the county appraisal website up to look up values while you're taking, ask foundation type, ask exterior type, age of house, basement and if it's finished, attic type and if it's finished, central heating and ac or window units/space heaters or whatever is normal in CT, roof condition, any back taxes or mortgage, then start to ask them if there have been any recent updates and how long ago that occurred, ask them what they think is wrong with it and how much they think it would cost to repair, ask them what they think their property would be worth if it were fully fixed up, then let them know you will either come see them or issue a an offer over the phone. Your preference. I no longer do offers over the phone.
3. When engaging the seller in person after knowing your comps, build rapport again try to listen to their story, be personal, and make the conversation about solving THEIR problem and what they need. Make sure to bring a purchase and sale agreement with you and make sure it has you listed as buyer and/assigns or whatever is legal in CT
4. Estimate repairs
5. Use your formula for ARV - your fee - repairs - end buyer investor profit - agent fee if needed = maximum allowable offer. This is more complicated if there is a mortgage or back taxes you need to deal with. Consider also subtracting closing cost so the end buyer can pay their closing cost.
6. Understand where the seller's price point is and why. Why they are motivated, when they need the money, and
7. Sit them down. Tell them what you think repairs need (consumer cost not investor cost) to be to get them fair market value. Tell them honestly that if they list it with an agent after repairs they will get a higher value but repairs will take x amount of time. Tell them that if they try to list with an agent now, they will have to pay a commission and holding costs where as with you they get the flat price after any taxes since you will get them closing costs since you are not an agent and this will likely net them more money. Ask them three questions you know they will answer with a yes. Then, make your 1st offer lower than your max allowable offer and ask them if that sounds good to them. Make sure they know you will close within 30 business days ( or 45 if you want).
8. If success, sign there. If nnot, negotiate. Do not go above your Max allowable offer if you want to be a good wholesaler.
9. If you are unable to negotiate, keep in contact regularly to chat, see how things are going, and ask them if they will reconsider an up to date offer (market dependent). Keep trying, motivated sellers become more motivated. Unmotivated seemed become motivated sometimes.
10. If success, a immediately get your signed contract to title co/lawyer (however your state does title), consider clouding title at the court, advertise your deal on BP, your local Reia, etc.
11. Set up visits for your prospective buyers and require a non refundable deposit for buyers to lock it down. High margin houses should be painful enough only serious buyers will bother you. $2500-5000. Caveat: fully refundable if you cannot close due to title or seller. Visits go best if you can schedule several buyers all at once. Builds competition and scarcity. If you want you can refund their deposit if they back out during their inspection period. It's nice for buyers but ****** for you. I don't recommend it. I'm sure this will start a flame war here but you can even ask @Sam Craven about this and he'll agree with me. I think he's podcast Episode 78. Or63.
12. Give your buyers an inspection period of no greater than 10-15 business days.
13. Got a legit buyer? Close at title co or lawyerbwith simultaneous blind closing. Check. Double check. And triple check your HUD documents before they send them to both parties. They can even close with mobile notary.
14. Set up either wire or transfer for your check!
15. Profit!
