So...I've been told and have been hearing you have to work a million times harder than any other month during December. Well, to say the least, it has been a killer for me. I have sent hundreds of letters with literally barely even 10 responses. To make it worse, those few responses were all tire kicker, "make me an offer!," etc. types of people.
As a new wholesaler, this sort of thing makes one want to give up, hibernate for a few months, and pop back up later on. I refuse to do so though, but it feels like I am just spending money (that I don't have much of) on something that seems impossible right now. I need any suggestion I can get.
A lot of my leads I bought on listsource.com and it seems as though quite a few have bounced back. I am trying to focus on absentee owners out of state at the moment. I live in Rhode Island, so it's tiny to begin with and I seem to have limited names that keep popping up. I am trying to focus on the cheaper inner city areas but am looking all over the whole State.
If you're working on wholesaling, avoid the cheaper inner city areas that are landlord dominated. Look to areas that have first-time homeowners, and move-up houses.
How so? I'm not sure I quite understand. How will first time home owners be willing to compromise their home for a smaller all cash price? I am trying to get a grip on this to make a career out of investing. Elaborate? Thanks :)
Hey do not give up! Especially if its your first DM campaign. Maybe you should try to diversify your leads list maybe try high equity and seller carryback leads and track which ones work better. You also gotta understand absentee is highly saturated with other investors from RI( at least a couple of the investors i know locally all do absentee from listsource) And also Im from RI and i get tax lien lists for free online so you can use zabba or something like that to get their numbers maybe addresses. Full disclosure I havent done my own DM campaign yet so take everything i say with a grain of salt. Also if you read a little bit more or listen to jerry puckets podcast almost everyone says it takes 3-6 touches before most people get good results and tbh if you havent sent out 1000 letters yet and you got more than 10 calls thats actually better than i hear from most on their first try. Good luck and stay motivated!
First, don't think of it as "compromising", You're there to help them solve a problem that involves the house.
In those neighborhoods, you'll find a larger percentage of people where getting the top price is not their #1 priority, solving the problem is the priority. Then, iIt's easier to find the rehabbers to buy the properties in those neighborhoods, and for you profit on a bigger margin.
In cheap neighborhoods, landlords expect cheap prices, and you get a smaller margin.
Keep in mind often keep mailers for a long time before they call. Also it is often the second or third contact that gets them to call. You are planting seeds. Just because they don't sprout in December does not mean that they will not sprout at all.
Be persistent and tenacious. Good things will come. I agree with @Darrin Carey that you must be a problem-solver. You will be a lot more valuable to the marketplace and have the opportunity to close a lot more deals.
One personal example is when I had a motivated seller on the west coast who had a property in the midwest. The owner's sibling was currently living in the home, and the owner's concern was the relocation of the brother. I found a place for her brother that was affordable and in their preferred location. I was able to solve the problem for that family and I made a better deal than I anticipated.
More importantly what area are you targeting? Meaning what and where are investors ACTUALLY buying in your state. Even if you do get a wholesale deal who's gonna buy it? Knowing where they buy and for how much leads you to be able to target your dm.
I disagree with staying out of cheaper inner city areas. My first deal was in a place called Camden... Ever hear of it? Top five worst cities in America! packed with landlords.
You're gonna have to do several mailings before you know if it works or not. Always reevaluate you're business. Daily, weekly, monthly... Nothing is perfect and nothing lasts forever. What works for me might not work for you.
Remember it's a numbers game.
Listen to my man Aaron here.
I know you don't want to hear this but repeated mailings is the key to successful direct marketing. I get more and more calls with each mailing. It's always surprising when after 6 mailings to someone they call and act like it was the first letter they ever received from me!
You might want to try mailing to a different list. As others have stated, the absentee owner list is easy to get and a lot of other investors are mailing it. You might want to consider vacant properties, tax delinquent, code violation or other "motivated" situations which fewer investors target simply because it takes more effort to build the list.
Keep at it though!
@Salvatore Lentini after mailing X amount of times to a certain list wit frw responses, it can definetely get frustrating. Posts like yours give me the hope I need to keep on truckin' on.
with* few** ugh to bad spelling!!!
@Nathan Paisley Thanks so much for the input, and yes, I used to live in North NJ so amongst the other cities that are on Camden's level, I am very familiar with it! Not the best of areas but thanks so much for sharing your experience and input. Any bit helps!
@Salvatore Lentini I see you are from Pennsylvania, as I am originally from Lancaster, PA. I have tried to mail at least 3 times thus far to every person on each of my lists, but thanks for sharing, because now I will make sure to continue on to 6 or more times. I always wondered if people would hold those letters for a later date or if persistence was really the answer to this situation I'm in.
@Mike Sumsky great advice! However, when I've bought my past lists, I've never seen any options for the things you've mentioned, as far as code violations, tax delinquencies, and vacant properties. How do I get this information into a list? I'm assuming a City or Town Hall would be the answer that you would give me. It seems, though, that when I go into those Hall's, that they look at me like I have three heads and that I am speaking a language from a far away world. I feel confident when I walk in that I know what I am asking for, but when they tell me they don't know what I mean and that they cannot help me, I get frustrated and hit that roadblock of not being able to go further in my search. Any thoughts on the entire process?
Thanks everyone who continues to post!
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