Real Estate Investor · boston, NH · Member since 2014 · 401 posts · 32 votes
so i hate to be annoying because i have asked this a few times. BUT! i just got my envelopes, stamps, and my yellow paper and before i write up 400 letters i want to be make sure i am doing it correct. so one last time!!!
"Hi (name)
My name is Derek LeBlanc and i am writing to you because i am interested in buying your house at 88 jingo rd in houston texas.
Please give me a call 555-555-5555"
should i leave my email too?
should i tell them i am a RE investor?
should i tell them i am wholesaling?
am i lying when i say i want to buy their house since i am really wholesaling?
anything else i should know?
I have never done a deal, this is my first time doing anything related to RE
I would use key words, like cash, pay all closing costs, can help you through any situation, help them move even ect ect ect. This is a people business, not a house business.
E-mail might be a good idea.
Don't mention wholesaling, you are a cash buyer.
Make it a bit of a pitch but not too aggressive. Tell them you want to buy 3 houses in the neighborhood and for them to call you this week for a no hassle cash offer.
Just my thoughts, we use yellow letters, post cards and type written letters. Reach out of if you get hung up on anything.
I would use key words, like cash, pay all closing costs, can help you through any situation, help them move even ect ect ect. This is a people business, not a house business.
E-mail might be a good idea.
Don't mention wholesaling, you are a cash buyer.
Make it a bit of a pitch but not too aggressive. Tell them you want to buy 3 houses in the neighborhood and for them to call you this week for a no hassle cash offer.
Just my thoughts, we use yellow letters, post cards and type written letters. Reach out of if you get hung up on anything.
can i say that i want to buy all cash even though i dont know if i can? i dont have a buyer set up yet so what if the buyer wants to take out a mortgage. a little confused on that. also with closing costs, if I am not buying the house can i say i will pay all closing costs? what if the buyer doesnt want to?
If you tell them you "can" pay cash, it doesn't commit you to doing so. Perhaps the leads you get from the yellow letters don't give you the types of deals you were hoping for... you should have several backup strategies as well. Start with a hierarchy depending on your specific business: 1. discounted price to do a traditional wholesale deal. If that doesn't work then 2. subject to, and if that doesn't work then 3. lease option assignment.
No, not at all. I don't invest a single penny into any of the lease option deals I do. There is a difference between putting a property under an assignable "hard lease option" vs. an assignable "soft lease option." There are advantages to both depending on the situation.
Never be a one trick pony. Your strategy should change depending on the list you're targeting. What kind of list are you mailing to? And what is the frequency you plan on mailing that same list?
You are a wholesaler and you are not buying with cash but the end buyer MUST buy with cash. Conventional financing will not work.
Your end buyer will also be paying all the closing costs, so nothing to worry about there. Once assigned this does not fall on you.
I also suggest you reach out to a hard money lender to get pre approved. This will remove any doubt you have about being a liar. If for some reason you need to purchase it, then you can.
Reach out to Noble Mortgage, or Jet Lending in Houston. I have no affiliation and have not done business with them, but they have the best reputations in town.
i targeted absentee owners in NH. i dont know how often i can mail to them. maybe send my 400 mailing list once every 2 months or so? i dont have the much money to send 400 every week. i may be able to do 400 every month.
so i dont need to worry about my buyer being a cash buyer or closing cost is what you are saying? rehabbers will be cash buyers?
do you think i could get a hard money lender? i got denied on a student credit card haha i dont know if hard money lenders would give me anything.. i will go and check though.
also i am not from texas i just used that as an example. i am from NH
400 per month will work. Target the same list 3-5 times. Absentee owners can be any of the following (high equity) rehabber deal, (high equity) landlord, (low to mid equity) subject to, or (any equity) lease option.
For the subject to niche, there is another group if they have little equity, you can assign the subject-to deal to another buyer and offer "seller financing." Phill grove talks about this niche extensively in his AMPS program.
thank you. i am going to save that on my tips document. i am going to learn about them before i send my letters so i dont sound stupid when they call me
so i dont need to worry about my buyer being a cash buyer or closing cost is what you are saying? rehabbers will be cash buyers?
do you think i could get a hard money lender? i got denied on a student credit card haha i dont know if hard money lenders would give me anything.. i will go and check though.
also i am not from texas i just used that as an example. i am from NH
Could u fill out ur profile so we don't confuse u w texans?
@Donald Baptiste, it primarily is the difference between an exclusive, and non-exclusive lease option. I use non-exclusive lease options in my business because I only work with FSBO, and the chances of them finding a cash or conventional buyer quicker than I can find a lease option buyer, are almost 0%. Joe Crump, and Joe McCall both teach this form. The soft option tends to only be 1 page long, and doesn't require you to put any consideration down up front. The hard lease option is a long form option which grants you the right to assign your option (also in a hard lease option, you can do a sandwich lease option if you ensure that the seller gives you permission to sublease the property, but I don't recommend ever doing a sandwich lease option... they can get very messy very quickly.) The hard option can and usually require you to either open escrow, or bring it to a real estate attorney. If you are super concerned, you can record your option on the deed as a "memorandum of option," but then you can bring the due on sale clause into the picture (even though the odds of a lender calling the loan due are extremely low with a memorandum of option recorded). I recommend using hard options if you find a landlord. Which form you use (hard or soft) depends on the types of sellers you're working with. FSBO = soft (or hard, but you can get away by just using soft options). Rental ads = hard, because the seller will always find a renter quicker than you can find a lease option buyer. People who teach the "hard" option, are Wendy Patton, and Josh Cantwell (middle man income).
Thanks Donald. This niche is relatively untapped. I see competitors pop up here and there, but they rarely take their business seriously. They come and go (and this is just in the 1.5 years I've been focusing on this niche). If you treat this business as a hobby, you won't see results. Treat it as a real business, and you'll thrive. Coming from someone that lost his butt on two rehabs and made a small fortune on my last rehab, I like businesses that don't make me lose money if a deal goes south.