What to do with leads from direct mail in DFW area I can't use?

Question

Hi folks!

Let me know if there's a better place to ask this.

I''m a new investor looking for buy & hold rentals around the DFW area.  I've just taken the plunge on my first direct mail campaign in the DFW area.  I've had interest from someone wanting to sell 2 properties next door to each other as a strict package (refuses to split them up in a sale, although they are two completely separate addresses / properties ,etc).  Asking price of the bundle likely puts this lead above my range but I'd still like to work this / turn it into revenue.

Does anyone have any tips for taking leads that aren't what I'm looking for that come in from my direct mail efforts and farming them out to other investors to still get some revenue on the deal / finders fee?  How do you go about doing this?  Is there a better way to turn this into additional revenue?

Thanks so much for your input in advance!

Jason Hirko · Answer

@chris

@Chris Hill great problem to have - get it under contract with an assignment clause and then sell it to an investor to seal the deal

Andrew Herrig · Answer

@Chris Hill Depends how much work you want to do. If you know you can get it under contract for a great deal, you can wholesale it yourself or partner with a local wholesaler to make an assignment fee (e.g. you get it under contract for $100k and find an end buyer willing to pay $110k, making you $10k in the middle).

Alternatively, you can birddog the lead to another investor/wholesaler for a set referral fee (usually $500-$2000) that you get paid if they end up negotiating and buying the deal.

Erik Drentlaw · Answer

Wholesale them with an assignment contract! Post it on Bigger Pockets or Craigslist. Or partner with a wholesaler who has a huge list of buyers. It should be easy to sell it if its a reasonable deal!

Chris Hill · Answer

...and putting this thread to bed, finally.  Closed on a property (my first) .  Have created my own buyers list and have processes in place for handling leads I can pass on.  This approach is a ton of work, not to mention capital intensive but so far so good.  Onward.

Thanks all for your input and direct messages. :)

Chris Hill · Answer

Hey folks

Quick update - while nothing has panned out yet, I'm getting far more comfortable in parsing the responses, filtering the tire kickers, determining who could be a contact to actually wholesale to in future and better refining potential deals from no-deals.  Actually, several landlords not looking to sell but actually buy have responded - so I'm building out that buyers list too as a side project.

Mostly though, my early respondents are mainly tire kickers or 'get-me-off-your-list' types - and they are all getting many, many pieces of direct mail from investors.

Made a couple of offers but no bites.....yet.

So.....in it for the long haul - just hoping I start getting offers accepted at some point (curse you, highly inflated market, hah!).

:)

Chris Hill · Answer

Hey @Chance Housos

Good idea, thanks!

Chance Housos · Answer

@Chris Hill

Make sure you let the seller know you will be expecting a discount for buying in bulk. This might help with your negotiation. If he expects them to be sold together then it comes at a price.

Chris Hill · Answer

Excellent ideas all, and thank you again!  I'll definitely keep you posted - just waiting on answers to my questions from the seller. :)

Breynan Hammons · Answer

@Chris Hill I agree with #Andrew Herrig post - "Alternatively, you can birddog the lead to another investor/wholesaler for a set referral fee (usually $500-$2000) that you get paid if they end up negotiating and buying the deal."

Abel Curiel · Answer

Please keep us posted Chris.

Looking forward to hearing about this success story in the making!

Have a great day!

-Abel

What to do with leads from direct mail in DFW area I can't use?

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