Snowball effect!

15 Replies

6 months ago my partner and I were starting our venture into real estate investing with only knowledge from this site and reading books.  We quickly learned by taking action, asking questions, and learning from our mistakes.  We attempted to find deals on the zillow.com, realtor.com, and craigslist.com with no luck.  A month later we decided to invest $1000 on a DM campaign with @Jerry Puckett   with much success!  We spread out the first $1000 batch of direct mail over 2 months and we closed one wholesale deal making $11500.  We reinvested the money into continuing our DM campaign.  We increased our monthly investment to $1500 and expanded our target market.  We then found 2 properties we closed on for buy and hold investments using the money from the first whole sale deal as the downpayment.  We paid $46k for both and will cash flow $700 combined after net net net.  Today we have two more properties we have accepted contracts on, but they are slow moving because they are under a trust and every step is a delayed reaction.  

We plan to use the money we get from the 2 whole sale deals to continue our DM campaign and work on our first flip in the spring of 2015.  We have a potential property we are working on for our first flip that will net us $60-70k.  It is also from the trust we came into contact with through our DM campaign.  We have done all this with minimal investment from our personal funds and while my partner and I both are working a 40+ hour full time job at a call center.  To all the newbies getting started wondering what to do first........  TAKE ACTION, ask questions, and learn from your mistakes as you go!

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@Brie Schmidt @Tim Leslie  Thank you!  It is great to see what we have accomplished in just a couple months, I am excited about what the future holds!

@Jon Klaus    From being in phone sales for years, negotiating and building value comes natural.  It makes handling the direct mail calls a breeze.  The call center we work in uses direct mail as well so it really goes hand and hand.

@Ryan Billingsley great success story so far, you hit the nail on the head. You need to take action if you want to get anywhere in life. 

Congrats, that's awesome!  I use @Jerry Puckett as well and the main thing is just what you said - you took action.  

Wish I had your call center expertise to help with the calls, that's the part I still just-don't-like, lol. 

@Christina R.    The more calls you field the more confident you will be.  Practice makes perfect!

@Joshua Dorkin    Thank you!  We are very thankful for this site and the community you have created!  I can't imagine where we would be without the help this site has provided us.  From the inspiring podcasts to the thousands of forum post we have read, this site has helped guide us through every step.

Just curious but what is your response rate to your mailings?
i.e. How many mailings go out and how many calls do they bring in?
And then how many calls come in compared to how many deals do you get?

Just trying to get a sense as to how much time you're spending on the phone to get each deal. Is it 20 calls times 30 mins a call to get one? 10 calls at an hour? 5 calls at 10 minutes?

@Mike H.    We currently pay 1500 per month for our DM campaign, we started out with 1000 spread out over 2 months.  In the first 2 months we closed 1 deal and we were just slowly sending mail out as we learned how to handle the calls.  We have acquired 4 more deals in the past 3 months off the 1500 per month DM campaign.  We send out 500 mailers per week for 3 weeks then take the 4th off.  We don't track the exact numbers because this is something we do part time while working around our full time day job.  As we keep hitting the same campaigns, the calls do slow down over time.  This is accounting for the leads we have taken off the list for return to sender and for leads we are working or that are dead.  After six months of hitting the same campaign we will pull a new list and start a new campaign.

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