Got Cash, need deals! Advise?

Question

Hey BP Community,

I need help! My father and I stared real estate investing in Southern Ca (San Bernardino and Riverside County)as it’s been something we have always wanted to do and now that he’s retired we’ve got time. We got our first property at a trustee auction in Palm Desert, CA. It wasn’t the smoothest deal for us but we got it done and we made some profit.

We’ve been going to auctions still and the process just sucks. We do all our due diligence and then all our potential properties end up getting postponed. We have a good amount of cash and are looking for some quicker methods to get properties, either to flip or wholesale.

Any recommendations or advice is much appreciated. Or if you have deals in our area let me know.

Lee Ripma · Answer

So I'm no expert but here are some things I know and have thought about: try networking with some of these wholesaling companies. Networth Realty, New Western Acquisitions, (also can try local wholesalers). You can also buy leads from someone like leadgeeks (trying right now). I would consider outsourcing facebook marketing to a company like silver street marketing (http://silverstreetmarketing.com/), having investor carrot do your website and have them all your content, outsource your SEO to investor carrott or another company. Marketing is crucial, but if you don't want to learn all the marketing you can always buy it. You can also look for a young hungry agent who wants to make offers and close deals (or get your own licence). Deals are available on the MLS occasionally. Deal flow is huge and marketing costs a lot. However, being that it is crucial you either need to set a budget for it or develop the systems yourself!

Chrissy Parsons · Answer

@Brianna Salas One of the big rules in direct mail is that you DON'T indicate that you have any personal knowledge of the person based on the list you are mailing to.

A good way to get someone defensive is to let them know that you are contacting them because they are in distress.

Instead list some of the challenges of ownership - why they might want to get out (unexpected expenses, taxes, maintenance) and how you can help (quick, cash, as-is, don't have to fix up to have strangers walk through your home)

You should consider working with a list broker to find some off-market seller leads. Seniors with Long-Term Ownership and Low Financial Stability Scores is a good one. You will be reaching people before the bankruptcy cogs start grinding.

I have a blog that talks about the type of message that you might want to send.

https://www.biggerpockets.com/blogs/10944/74462-you-want-to-buy-their-home-but-how-do-you-get-the-attention-of-senio

Matt Schuberg · Answer

Hi Brianna,

Everyone here has given some great advice. Finding properties right now is extremely difficult with how competitive it is, but there are definitely deals out there. I work for New Western Acquisitions and I'd love to talk more with you to try to help you out. I think we could be a great asset for you to find deals.

Scott Rogers · Answer

Dont rush into a bad deal. It either makes sense or you keep looking. But dont talk yourself into a marginal or bad deal because you feel its taking to long for a good deal.

Charles A Munk · Answer

@Lee Ripma Thank you for the advice.  I appreciate you taking the time to share your experience.

Lee Ripma · Answer

@Charles A Munk

Terrible. They never delivered a single lead and they had to give me a full refund. So I wouldn’t recommend.

Charles A Munk · Answer

@Lee Ripma  I read in a post that your tried (trying) LeadGeeks.  I wonder what your experience with them was?  What do you think was your closing rates on those purchased leads?  Thanks.

Emre Görü · Answer

Hey @Brianna Salas I just saw your post. Actually talking to a local realtor / agent would be very helpful for you to find deals. I know a great realtor in Palm Desert and surrounding area, she closes a deal almost every week. So that she knows almost every activity in that area. Even just talking to her would give you a massive  idea about your plans and projects. Her name is Ahu, you can find the contact details in the link below. I wish you the best with your investing.

https://www.bdhomes.com/agent_profile.asp?id=2101

Got Cash, need deals! Advise?

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