When dealing with distressed properties with absentee landlords/investors, would you rather call them and tell them you've noticed their property and would like to purchase it, or would you rather send in a couple rounds of yellow letters and hope for the best?
Obviously this isn't a scenario where you are working a farm and trying to generate any potential lead, but a smaller, more hand selected approach. I prefer making the call, but lets assume the owner doesn't bite, is it then over? Phone call with a follow-up letter that leaves the door open perhaps?
Thanks in advance.
If you have the phone number, call. Both, actually. If you have a good lead, you want to make several touches so that you are their number one option.
when I was in this business we did both.. we never sent letters. we either called if we could find a number (much harder today with everyone having a cell phone) or we knocked doors.. I had a team of 6 that went out I pairs and knocked on every NOD in my 3 county market.. I paid them on performance and small salary. I only went to put the deal together once they teed it up for me.
In my timber days we did telemarking... Rural folks usually have phones and they never get telemarketed so my telemarketers could have some nice conversations this generated multi millions in annual gross revenue and not a bad net at the end of the day...
When I did finally get to sit with the person that was motivated to sell if they were in foreclosure 99% were.. I would ask them how many letters did they get.. Average response was over 50... this was back in 03 to 06... letters are shot gun approach so you need to send out thousands upon thousands to get reposnes. Unless its a very target type of property your going after but if its what 99% of BP folks go for SFRS your just one of hundreds hitting the same owners. so its the luck of the draw. and why its important in my mine to answer your friggen phone live
Never sent a solicitation letter in my life, not my style, I use the phone. Thank you letters/notes are different, that is being polite.
If it's a good lead, one in three won't get away on the phone.
Call, qualify the deal and get an appointment. I know, it's old fashioned but it works! :)
It is a lot harder to find good phone numbers now that so many have moved to mobile phones only.
I appreciate everyone's responses. It has affirmed my own personal opinions but it's nice to hear it from more accomplished investors.
Call it old fashioned but I also find myself to committing to many more things if I have spoken with someone over the phone or face to face. I just don't want to become another piece of junk mail that gets chucked into the bin without even reading.
@Jay Hinrichs I see your in Lake Oswego, what type of investing are you doing now? I saw on another post that you were building out in wine country?
currently building new construction in Hood River,, Yamhill, Carlton, McMinnville , Lake O ,, Wood Village Canby , and just broke ground on a 27 lot sub in Gresham that I am doing all the underground for as well... And have 16 lots in Seaside my bank is having me build out for them as a special project.
I also fund flippers in 11 states I do these all as Joint ventures I do not loan money anymore but in the day I owned Silverado Funding here in PDX you may know of them..
Even though I am NMLS licensed I find the JV route much cleaner and I don't have to answer to NMLS and the mortgage call reports etc.
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