Chicago investor in need of tips

7 Replies | Chicago, Illinois

Hey BP community. so I tried the direct mailing to sellers and realized that it's a lot of time and work since I did all the work in house, and only got back one phone call from that the list that was only of 400.

since last time I've posted I've managed to save more money. I'm at 45k saved now, my moms flip is in escrow now and hopefully it will close soon. we have been putting offers on on market deals cash and raised the EDM and waived inspections except for foundation and major water damage and still get out bid. 

so taking everything into consideration I feel like I should spend more money on marketing and start to cold call while also sending more direct mailing and texting and getting a bigger list to do so. I don't know if cold calling and sending text messages in Illinois is legal so if somebody is already doing it let me know. and I also wouldn't mind interning or work for free for a wholesaler or real estate agent so if anybody needs help I am more then happy to help and so I can grow more skills and learn more how everything works. 

any feed back or ideas on if I should do something different I will appreciate it. any wholesalers also can add me to their buyers list send me a message so I could give you my email. looking in the south sub of Chicago for a flip under 150k thanks guys!

@Julio Aguirre - As far as your question about mailing to a list. It will all depend on who you are mailing. Expired,canceled, Probabte, People with equity that are pre foreclosure, Low or no equity list. Vacant properties and so on. We have 2 lists that we mail to and stick to that. Minimum of 7 contacts on those lists. 

$ 700 intital  mailing

Then $ 300 for skip tracing and phone text. 

Then sort out people who say don't call or text. 

Keep following up with the rest with 2 mail pieces and text again.

THen again clean and sort and 3 mail pieces and text and clear and sort again. 

You have to first narrow down the area, Then which list and then your exact strategy. 

Bandit signs, driving for dollars, mailing, cold calling or marketing for leads on internet or other media they all work and depends who you talk to you will get confusing answers. 

So the way I set this up is. 

Initial investment of $ 5,000 (That was the total budget allocated for mailing and text campaign)

1. 1st Mailing $ 700

2. Text Followup $ 300

3. 2nd Mailing $ 1000

4. 3rd Mailing $ 1350

5. Text $320

So on...

1 deal closed Gross profit 25K. Net 21K after expenses (This was Wholesaled)

7K allocated back to Marketing (14K put aside as profit)

2nd Deal Kept as rental 

3rd deal in process will keep as a rental 


Chicago is too big an area. Get it narrow down to your areas and then start marketing. Make sure you stick to what strategy you pick. The more you read and listen online. Every new thing you hear about will seem like to magic answer. The money is in consistency and repetitious boredom activities. 


Only do flips that are in your area and you can easily manage. A lot of people are overpaying for properties so wholesale the stuff out that you don't want or outside your market. Best yet you can keep some as long term rentals that are really good and fit your criteria. 

@Andrew Holmes

Thank you for the feedback yea I’ve seems that targeting the same list from different marketing methods is probably the most efficient way to use a list since different people respond to different methods. My plan is to get 2 flips then 3rd a rental and just cycle from flip to rental after that.

I strongly  advise you not to text. Recipients pay for receiving your garbage/spam, so you have already irritated them. The message is too short, so it looks like a scam. I wouldn't text/e-mail until AFTER an owner has contacted you AND the owner has consented to texts/e-mails.

Originally posted by @Julio Aguirre :

Hey BP community. so I tried the direct mailing to sellers and realized that it's a lot of time and work since I did all the work in house, and only got back one phone call from that the list that was only of 400.

since last time I've posted I've managed to save more money. I'm at 45k saved now, my moms flip is in escrow now and hopefully it will close soon. we have been putting offers on on market deals cash and raised the EDM and waived inspections except for foundation and major water damage and still get out bid. 

so taking everything into consideration I feel like I should spend more money on marketing and start to cold call while also sending more direct mailing and texting and getting a bigger list to do so. I don't know if cold calling and sending text messages in Illinois is legal so if somebody is already doing it let me know. and I also wouldn't mind interning or work for free for a wholesaler or real estate agent so if anybody needs help I am more then happy to help and so I can grow more skills and learn more how everything works. 

any feed back or ideas on if I should do something different I will appreciate it. any wholesalers also can add me to their buyers list send me a message so I could give you my email. looking in the south sub of Chicago for a flip under 150k thanks guys!

 

My feedback:

  • Invest in systems to automate your business
  • Stop texting people you don't know- Texting should be used after they have opted in to receive information from you
  • Continue the direct mail but w/ systems in place to automate your response to sellers
  • Invest in web presence 

@Julio Aguirre going directly to sellers is all about the follow up. As an agent, I have people in my pipeline that are there for years before they transact. I am ok waiting for them and I just keep following up on the listing until it comes to fruition. Now the hard part for you is that your message is a bit different. My message is that the market is up and I can help you maximize your returns, while your message will be that you can help someone fix a problem, close fast or get out from under a burden, etc. 

The tricky part for you is that an even lower percentage of people will respond. A lot of people on the lists you pull will be legit, but only a small percentage will be motivated and you have to find a way to keep hitting the list to build up a track record. Essentially, if someone calls you, texts you or emails you they are probably legit. Never stop calling them back and put them in your CRM for continued follow up. 

@Julio Aguirre - You've definitely got some great advice above from @Andrew Holmes .  His step-by-step process is right on, he's done it thousands of times and it works.

In my opinion, there are two keys to off-market deals.  1.  Consistency 2. Follow-up (as @John Warren mentioned).

I didn't hear you mentioned where your list of 400 came from?  If it's a good list keep at it and a deal will come through.  

One of the earlier mistakes I made was not being aware of exactly who I was mailing.  Like any marketing, you need to know your customer and how you can help them the most.