Received a response/threat from one of my mailers

Wholesaler · Katy, TX · Member since 2016 · 4 posts · 0 votes

I am a new wholesaler in Texas and sent out my first direct mail campaign last week. Today I received a phone call from an angry lady in California who received one of my letters and said that I am defrauding people and that what I am doing is illegal and that she is going to report me to the Texas Attorney General's Office.

I obtained my mailing list from the county directly and my letter states that I am interested in purchasing her property. Is this something I need to be worried about?

Thank you,

Larry

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Greg H.Pro Member

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Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes

You must have told her that you want to tie up her property for months and then bail unless you can find a buyer because you do not have the money to close ! Sorry, I had to say it

No issue at all but scratch her off your list

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Jeremy Pakalka
Houston, TX · Member since 2016 · 349 posts · 142 votes
9y
@Larry Murray Do not worry at all. I get angry phone calls all the time. Their house is on a list somewhere and they have received multiple letters and this is their way to make it stop (it wont stop it though). I even had a letter mailed back to me cut up into a hundred pieces. I laughed when I opened it because they had to take the time and money to send it back to me. I almost mailed them another one but I didn't. If you are not getting angry phone calls and having people laugh at your offers once in awhile, you are doing something wrong.
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Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
9y
You must have told her that you want to tie up her property for months and then bail unless you can find a buyer because you do not have the money to close ! Sorry, I had to say it
No issue at all but scratch her off your list
6 Reply
Larry Murray
OP
Wholesaler · Katy, TX · Member since 2016 · 4 posts · 0 votes
9y
Jeremy and Greg, thank you for taking the time to respond my my post. You guys put my mind at ease.
0 Reply
Cornelius Garland
Wholesaler · Charlotte, NC · Member since 2015 · 398 posts · 680 votes
9y
Larry Murray Like the others indicated, this happens all the time and I wouldn't take her seriously at all. You got her address the same way that all of the other companies who send her mail did. The only issue is that your mail piece is so personal that some people view it as a violation of privacy even though property information is public. Just laugh it off. I have a folder on my computer full of angry voicemails that I listen to when I need a laugh. At least you're getting a response from your mail unlike some people on BP recently!
2 Reply
Andrew Johnson
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Greg H. Well played, sir...well played...
0 Reply
Dutch Andrews
Investor · Portsmouth, VA · Member since 2015 · 16 posts · 6 votes
9y
They read it! Good job
, don't worry, there is not a do not mail list! Yet!
0 Reply
Dutch Andrews
Investor · Portsmouth, VA · Member since 2015 · 16 posts · 6 votes
9y
They read it! Good job
, don't worry, there is not a do not mail list! Yet!
0 Reply
Jeff Sprunger
Lockport , NY · Member since 2014 · 265 posts · 124 votes
9y
you should, of course...mail her an apology letter!
0 Reply
Michael Ablan
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
9y
I wouldn't worry about it. Soliciting via the mail has been around forever. You're not doing anything wrong.
I once had a woman call me up and accuse me of stalking her and her children on the grounds that there was NO WAY I could have possibly known she wanted to sell her house. It took a good 10 minutes on the phone to assure her that I couldn't pick her, her kids or her house out of a lineup of people or houses. I think people watch a little too much Lifetime and start assuming all sorts of crazy ****.
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Joshua Howaniec
Contractor · Indianapolis, IN · Member since 2016 · 267 posts · 144 votes
9y
Being hated is part of progress so thats no biggie. Also, I do want to encourage you to be careful about what the mailer reads. If in fact it states that YOU buy houses for cash when in reality you assign it to somone else who does, that could be considered fraud. Fraud's most basic definition being "lying". Again, I dont know that you could get in real trouble in court but I am speaking from other cases that are now going on against wholesalers.
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Bob B.
Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
9y
At least you know someone is taking the time to read your mailer.
I get at least 4 "yellow letters" a week and while it's a waste of my time I don't go postal on the sender.
Carry on and good luck.
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Peter TverdovBusiness Member
Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
9y
People are rude. Don't sweat it. I have gotten yelled at by people or hung up on. We all have. All part of the chase.
[email protected]732-289-3823
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Larry Murray
OP
Wholesaler · Katy, TX · Member since 2016 · 4 posts · 0 votes
9y
Thank you everyone for responding to my post. I didn't think I was doing anything illegal, like she accused me of doing, but being new at this I started to get a little worried that maybe I had missed something. I'm going to keep moving forward and try to get some deals under my belt. Thanks again!
0 Reply
Sam Shueh
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
9y
Take her name and address remove her from your mailing list. There is a realtor since 1983 trying to sell my home. I finally met her in 2009 (26 years later) thanked her for the little gifts as we are from the same re office. She said what?
2 Reply
Larry Murray
OP
Wholesaler · Katy, TX · Member since 2016 · 4 posts · 0 votes
9y
She said that I was defrauding people and that what I was doing is illegal, and that she was going to report me to the Texas Attorney General. She then hung up before I had a chance to even respond to her accusations and threat. I obtained my mailing list from the county tax assessor and my letter is from a course I purchased, which had nothing in it that should set someone off. I figured I was okay, given that there are probably thousands of wholesalers who send these letters, but since I am new to this and it was my first direct mail campaign, I got worried that maybe I missed something. Thanks for your comments.
0 Reply
Josue Vargas
Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
9y
The only thing she could do to you is put your sender's address on a holding list.. even thought, this is more applicable for other promotional mails such as credit cards companies, "free-type" magazine, etc. I doubt your mailing address will ever go banned from getting to its final destination. You are doing a good job, people are getting these letters and reading it!
Best regards,
Josue Vargas, PE
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Michael Bracken
Investor · Garland, TX · Member since 2015 · 110 posts · 43 votes
9y
This is a great exercise for your business. Where I operate a state controlled board is mandated to review all customer complaints. Some people are actually just crazy. They do their part and you do yours!
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Al G.
katy, TX · Member since 2011 · 12 posts · 7 votes
9y
"said that I am defrauding people"
Sorry to rain on the parade, but isn't this exactly what you (and other wholesalers) are trying to do ?
Aren't you attempting to purchase the property at a significant discount from the fair market value, resell the property quickly and pocket the difference for yourself ? Your profit is coming out of the owner's pocket.
There are two types of owners that will sell at wholesale prices:
- Owner attempting to harm another party, such as a divorce.
or
- Owner does not know the property FMV.
In the 2nd case, the wholesaler attempts to convince the owner the property is worth far less than the FMV so they can purchase the property at a discount and make a substantial profit for themselves.
I just encountered an example of the 2nd case. An elderly couple had to move into an assisted living home due to health issues. Money was tight. The lady contacted a "Buy Your House" ad and was offered approx. half the property's FMV. She was going to sell the property at the highly discounted price. Lucky for her, I spoke with her and convinced her to advertise and sell the property in a public listing. The property sold for approx. twice the offer from the wholesaler. Even after deducting her selling expenses, she was far, far better off then selling to a wholesaler. The owner was thrilled. I slept well that night. Judging from the posted responses, most responders would not hesitate to pad their pocket at the expense of the elderly couple and would not have a problem sleeping that night.
Kudos to the owner who challenges a party attempting to defraud the owner out of their FMV equity. All owners should become more knowledgeable to avoid being taken advantage of.
Fyi, untruthful and deceptive ads are illegal according to the FTC. Under the Federal Trade Commission Act: "advertising must be truthful and non-deceptive . . . advertisers must have evidence to back up their claims . . . Advertisements cannot be unfair". I fully support prosecuting anyone involved in this type of illegal activity.
1 Reply
Charlie MacPherson
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
9y
@Al G. There are other reasons a property owner may want to sell below market value. Here are just a few:
1. Inherited property in another state. Too far away to maintain or even to visit on a regular basis. Unfamiliarity with that state's landlord / tenant laws can make renting hazardous. If you don't believe me, investigate rental laws in MA, where a "professional tenant" can tie you up in court for a year without paying you a cent.
2. A property with decades of deferred maintenance. Sellers don't have the money to do repairs and the house has no shot of surviving FHA / VA / USDA appraisal.
3. Seller is in a circumstance where they are willing to trade time for money. 75% of fair market value in the next 10 days may be far more useful in their circumstance than 100% of fair market value 60-90 days from now. Especially if those funds are going to help them to keep their primary residence out of foreclosure, to make a very profitable investment or to pay for emergency healthcare.
That said, it seems to me that wholesalers in general are looking for distressed people, properties or circumstances. That does create opportunity for those who are less ethical to take advantage of people.
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Stanley Parsley
Investor · Chandler, AZ · Member since 2015 · 409 posts · 214 votes
9y
all these are great posts
Ill tell you a little story that happened to one of my buddies
he did the mail thing
low and behold someone got a letter that was an attorney that worked for a civil rites group
the attorney turned around and found every fraudulent claim in the letter and went after buddy
after tying him up in court over a frivolous claim, he lost his shirt and also ended up with a record for fraud
fair warning if you are going to send out bulk letters claiming something, you better have an attorney look over what you are claiming
"the risks fools take to make profits"- twain
enjoy
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
9y
I got something in the mail from home vestors trying last week trying to buy my house. Local guy looks like trying to use their system.
I just throw it in the trash. Everyday I go through my incoming mail in about 2 to 3 minutes over the trash can.
I do think it is misleading when someone says they can pay cash for a house and really cannot.
That kind of thing has put a stigma on that kind of strategy over the years.
Investors need to be authentic and 100% clear on what they are trying to do then let the owner decide if they have interest or not. The problem comes in with the investor promising one thing and then manipulating or doing another (bait and switch). That is unethical and not a way for long term success with a business.
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Ed Perez
Cleveland, OH · Member since 2016 · 42 posts · 12 votes
9y
If you have the available funds to absolutely make a legitimate offers, by all means, go for it. But if you're new to this and just testing the water and really have no funds (from your own or from lenders), you're just wasting your time and money and the people who are really interested in selling their homes.
I wouldn't worry about the Attorney General Office. They have better things to do.
0 Reply
Jeff Filali
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
9y
I love when others post that homeowners are being taken advantage of when investors or wholesalers buy a home below value... So, are you telling us that if a homeowner called you and said they needed to sell their home and are willing to take X for it, that you would say NO, let me pay you X + Y????? My clients who I've purchased homes from all knew their own situations, many times I didn't even have to make a lower offer, they made the offer and I accepted. I've never forced anyone to sell to me, they chose to based on their situation and many of them have referred other clients. So, I guess I'm also taking advantage of the banks when I buy a foreclosure from them. You're not going to be successful in real estate investing paying retail.
3 Reply
Eric F.
Real Estate Investor · Raleigh, NC · Member since 2012 · 427 posts · 297 votes
9y
Two pieces of advice.
1) Get a PO Box. I had someone threaten to come to my house and attack me one time. It was the first mailer I ever sent. I got a PO Box the next day. 3 years later and I never got a threat again but better safe than sorry!
2) If sending direct mail to consumers was illegal the CEO of Dominos would be doing 25 to life. Just make sure you do not claim anything you cannot do in your letter.
If your letter says "I want to buy your house cash" and you do want to buy it cash then you are OK. If you have no intention of actually buying it you are probably doing something illegal. I'm not a lawyer but other people who are also not lawyers in this thread agree.
I can't get the @ to work but Ed said "I wouldn't worry about the attorney general's office. They have better things to do."
Attorney Generals love news coverage. When someone gets defrauded out of their house it hits the news, every time. The AG will be there the next day. This is a dangerous assumption.
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Pratik P.
Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
9y
@Al G. I'm going to take a guess and say you've never wholesaled or flipped a house because your 2 reasons are very limited.
Anyone trying to flip a property has to get it at a discount mainly because 1. The property needs rehab. 2. It has to be a cash transaction since a bank wouldn't approve a loan.
Do you expect people to invest their money into marketing and rehab to make nothing or lose money on the deal? This isn't volunteering or charity.
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