Investor · Waynesville, NC · Member since 2014 · 408 posts · 121 votes
So I have gone several months now in my home market without finding a decent deal to fix and flip, and I finally decided enough is enough. I have read so many stories here of folks who have successfully implemented direct mail to build their business, and I have decided it is time to join their ranks. Today I put my order in for 550 yellow letters using Michael Quarrles' yellowletters.com.
The list I generated had about 1100 names, so I decide to break it in half and target the first 550 for the next 5-6 months with a monthly mailing. The list included absentee owner, in and out of state, 10+ years of ownership with values under $200,000.
I am nervous and excited about what comes next. I'm not one to love talking on the phone or negotiating, but it is time to overcome that and take the bull by the horns.
The point of this thread is to keep me accountable and to hopefully document some success stories along the way. I am also hoping to get input from people who have been down this path who can share their wisdom.
@Account Closed - "didn't like the property"???? I haven't met a property for sale at the right price that I didn't like. I would think you could figure out how to make money on any property if you got it for the right price. You might keep that in mind. Even if you pass the lead to someone else and get $500 then that pays for some marketing for you.
Bill, I definitely understand what you mean. To add a little perspective, I live in a very rural area and at the moment I don't have much of a buyer's list. I am primarily looking for properties for me to buy either as fix/flips or rentals. When I get a lead that is a doublewide 2 miles up a gravel driveway on top of a mountain, I generally pass. It doesn't make for a good rental or flip. I have two other investors who I'm passing leads to if I don't like them, but I've learned they aren't interested in those types of properties either. Now, even properties like that are fine IF they are cheap enough. But, I'm being selective because I am the only person marketing to this area, and I think there are better deals to use my funds on. I don't want to get tied up on a marginal property and potentially lose a good deal as a result.
@Account Closed looks like from your pic that you are a wolf pack fan. I attended NC State for 2 semesters on an exchange program. It was a great year.
Anyway, the best cash flowing rental property is typically a mobile home on land. I know of several people who swear by them. If they were in my area I would be all over them. The folks I know typically pay about 70% of retail land price for the MH and land. They then rent them out for about 70-80% of a SFH and watch the cash stack up. Typical payback is a couple of years, 5 years max. Some sell them with owner carry to cut down on management as well.
Bill, I am a Wolfpack grad and big fan! Its a tough life, but what can you do?
As for the MH and land deals, I totally agree. That is the reason I included mobiles in with my mailing list. I own 2 and they are cash cows. But, I am trying to be very selective in what I jump on right now since I'm looking for a flip more than a rental. If I could get them in slightly better locations, I would buy them and watch them cash flow.
Bill, I am a Wolfpack grad and big fan! Its a tough life, but what can you do?
As for the MH and land deals, I totally agree. That is the reason I included mobiles in with my mailing list. I own 2 and they are cash cows. But, I am trying to be very selective in what I jump on right now since I'm looking for a flip more than a rental. If I could get them in slightly better locations, I would buy them and watch them cash flow.
Just curious here about mobiles since I never even considered them from an investment standpoint. Are you talking about buying a mobile that's in a lot in a park?
I own 2 mobiles in parks. Both are great cash flow investments. They are cheap and there is always a demand for low price rentals. They are not "sexy" investments that you will want to brag about to your friends, but they make money. Owning the home and land is even better because you have a true asset with the land. Mobile home parks are also a great investment.
@Jim Meloche I am not an expert but the people I know who do this say the only way you want to do it when the MH is on it's own land. Owning in parks is a huge step down since you have carrying costs when it's empty. That can eat into profits very fast.
@Jim Meloche I am not an expert but the people I know who do this say the only way you want to do it when the MH is on it's own land. Owning in parks is a huge step down since you have carrying costs when it's empty. That can eat into profits very fast.
Thanks Bill - I thought a bit about that after I posted the question. You are right, lot rents at, say, $400 /mo mean that if it's empty, that's a huge drain on profit....