New to Wholesaling. Question on Direct Mail

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New to Wholesaling. Question on Direct Mail

Zeshan Choudhry
Investor · Toronto, Ontario · Member since 2017 · 28 posts · 4 votes
Hi everyone,  I am a new wholesaler and I am ready to start my very first Direct Mail campaign in Orlando, FL. I just had a few questions regarding how to structure the leads criteria: I am focusing on Absentee out of state owners to find motivated sellers and I have narrowed down the list to those who own SFH, min 1000 sqft, 3beds, 2 baths in Orlando. I have an option to select Loan to value % as well. Does anyone have any recommendation of a minimum % I should use? I was thinking to use minimum 50% LTV. Also I have the ability to filter on last sale date, was wondering how far back should I go on this? up to 5 years? My final question is regarding frequency of mailings. I have the option to do bi-weekly or monthly mailings with up to 5 touches. Does anyone have any suggestions? I am leaning towards monthly mailings with a 3 touch campaign for my first campaign. I know this a lot of questions, but any feedback would be greatly appreciated! Thank you!
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Ethan Summers
Austin, TX · Member since 2015 · 223 posts · 185 votes
9y

@Jose Castillo I started with 1000 yellow letters. If you remain consistent you will win!! 

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  • Neil Da Silva
    Investor · Toronto, Ontario · Member since 2017 · 116 posts · 20 votes
    9y
    Originally posted by @Zeshan Choudhry:

    Hi everyone, 
    I am a new wholesaler and I am ready to start my very first Direct Mail campaign in Orlando, FL. I just had a few questions regarding how to structure the leads criteria:
    I am focusing on Absentee out of state owners to find motivated sellers and I have narrowed down the list to those who own SFH, min 1000 sqft, 3beds, 2 baths in Orlando. I have an option to select Loan to value % as well. Does anyone have any recommendation of a minimum % I should use? I was thinking to use minimum 50% LTV.
    Also I have the ability to filter on last sale date, was wondering how far back should I go on this? up to 5 years?
    My final question is regarding frequency of mailings. I have the option to do bi-weekly or monthly mailings with up to 5 touches. Does anyone have any suggestions? I am leaning towards monthly mailings with a 3 touch campaign for my first campaign.
    I know this a lot of questions, but any feedback would be greatly appreciated!

    Thank you!

     Hey I'm a Toronto resident and Florida investor as well!

    With respect to direct mail I haven't done any of that, I firmly believe that the right relationships are truly the key to success in this business. PM me let's chat.

    0Reply
  • Marshall Copley
    Port Saint Lucie, FL · Member since 2017 · 1 post · 1 vote
    9y

    Any suggestions for websites to find motivated sellers?  I have already started a direct mail program and have about a 2% success rate with it.  In the book Are You Dumb Enough To Be Rich which can be found online for free it gives you a great template that I've been using.  BTW I live in West Palm  Beach FL.

    1Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    @Zeshan Choudhry

    Do you intend to close and then resell. If you intend to only put properties under contract and the advertise the properties that is ILLEGAL under FL law. See 475. There are several people that have got cease and desist letters for operating this way. They could be charged with a 3rd degree felony for brokering without a license. You CAN do this in several states but is prohibited in both FL and OR.

    0Reply
  • Zeshan Choudhry
    OP
    Investor · Toronto, Ontario · Member since 2017 · 28 posts · 4 votes
    9y
    I don't intend advertise the properties online of any sort, I plan to assign them over to a select group of cash buyers or do a double close.
    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    Strictly using contracts to broker is illegal however you find your buyers. Closing and then reselling is legal. I filed complaints on five crooks today for brokering without a license. 

    0Reply
  • Rafael Norat
    Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
    9y
    Zeshan Choudhry great job getting things going! 50% equity is a common number. But if you have enough leads around 70% equity then don't water it down too much. I usually prefer higher equity and less leads than fielding more calls where owners have a higher payoff. Also sometimes the 2nd mortgage doesn't show up and adds to the amount as well. Trial and error on your frequency my friend. Pick one and see how you like it. I prefer to send them out all at once so I field most of my calls within a short timespan. Then usually have some stragglers along the way. But can only do what your call team (if only yourself) can support. Bi weekly may have you answering the phone every day. It's pretty much up to you and what you prefer. Maybe consult with other wholesalers in your area as well to get their local opinions. Hope that helps.
    1Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    This guy was using contracts to broker without a license:
    https://www.myfloridalicense.com/sto/unlicensedact...

    Once you get that "badge" it never goes away:)

    There are hundreds more..and several are under investigation as I write this post for brokering without a license. Sorry charlie...people are not entitled to break laws they don't agree with!

    There is one term you should also consider: FRAUD BY INDUCEMENT.

    I know someone being sued at this time not only for fraud, but victimizing an elderly person (over 60 in the State of FL).

    "Wholesaling" defined is breaking laws to broker without a license.
    If you FLIP...that is LEGAL.

    0Reply
  • Zeshan Choudhry
    OP
    Investor · Toronto, Ontario · Member since 2017 · 28 posts · 4 votes
    9y

    @John Thedford Thanks for the heads up and good advice.

    0Reply
  • Zeshan Choudhry
    OP
    Investor · Toronto, Ontario · Member since 2017 · 28 posts · 4 votes
    9y
    Rafael Norat Thank you that was extremely helpful. I will definitely use 70% equity to get those quality leads! Yes, so far I am a one man team so I will be answering the calls directly. I am thinking about using a voice messaging service just so they can record a message and would allow me to review the property beforehand. I do like your approach of sending them all at once so I will give it a try. I appreciate the feedback and great advice!
    0Reply
  • Bill Dickson
    Investor · Colorado Springs, CO · Member since 2017 · 17 posts · 3 votes
    9y

    what is the difference between flipping and wholesaling??

    0Reply
  • Account Closed
    New York City, NY · Member since 2016 · 420 posts · 172 votes
    9y

    @Bill Dickson flipping you own it, wholesaling you don't. 

    1Reply
  • Rafael Norat
    Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
    9y

    @Zeshan Choudhry I would recommend NOT setting up an answering service at first and instead fielding your calls.

    Why? This will give you invaluable experience interacting with the customer you will be getting to know. That will then provide good data to put into your systems. Start out slow, field your calls, learn, and then build.

    Just my 2 cents. Plenty of ways here..

    1Reply
  • Ethan Summers
    Austin, TX · Member since 2015 · 223 posts · 185 votes
    9y

    @Zeshan Choudhry when sending out direct mail a great message/ call to action along with consistency is key id send out your 5 mailers over a span of time then calculate your response rate/ closure rate. If your message and consistency brought you a deal keep the same systems in place and add more great marketing strategies to your tool built. In terms of marketing omnipresence is key! Hope this helps feel free to connect! 

    2Reply
  • Jose Castillo
    Flipper/Rehabber · Springfield, MA · Member since 2016 · 641 posts · 204 votes
    9y
    Ethan Summers would you think 1000 postcards a month would be enough to make it in this business? 'I've sent out my first mailing a week ago and plan on hitting that list AT LEAST 6 times. Making that once a month for half a year.
    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    @Zeshan Choudhry

    FYI
    I have friends that buy LOTS of property and do NO marketing. Both buy off the MLS as well as foreclosure auctions and other avenues. They have the money to close, and don't play the games many unlicensed brokers play. If you plan on marketing, and have money to close, I would use that as a buying factor by enclosing POF with the marketing. If you don't have funds, get them first.

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    9y

    @John Thedford

    Still preaching to the choir, hey....

    Oh boy, using the mail to to say you're buying when you never do, oh what fun!

    I doubt this bunch has ever heard of the FTC either and they are busy trying to dodge state investigators, LOL.

    Good luck.......  :)  

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    @Bill Gulley

    The local case where the "buyer" dragged through all the inspectors, seller found out they were being played, and defaulted on sale, and then "buyer" sued is playing out. "Buyer" has sued and seller has counter sued for...FRAUD BY INDUCEMENT among other claims. "Buyer's" attorney has filed for an extension after receiving a copy of the counter. Included with the counter were very pointed questions such as;
    1. provide 3 months banking statements during this period (maybe "buyer" had no funds??)
    2. how many houses have you assigned over the past x years. How many have you purchased?
    3. identify all the "inspectors" you brought through the house...

    There are many more> I bet the "buyer" damn near had a fit when they saw the interrogatories:)

    There ARE avenues for sellers to SUE these FRAUDS...all they need to be is educated on the game...and I am working on that:)

    I had a call from DBPR yesterday and their EXACT words were: Bigger Pockets and Cragslist are HOTBEDS of illegal activity!  

    I have ONLY sent in FIVE complaints this week for illegal activities...:)

    BTW---saw an article on Yahoo this morning: ST Louis PD or SO is selling off a bunch of guns including several Tommy Guns from 1921 or 1928. They are probably worth 35K each+..but sold them for 22K to a dealer in Kentucky. I wish I had been given the opportunity to bid on them!

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    https://www.biggerpockets.com/forums/93/topics/438...

    Game players should read this. It is playing out now in the courts in Collier County, FL.

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    9y

    LOL, "hotbeds of illegal activity" yep, it sure is! 

    Josh said long ago that they can see the sites of visitors who come and lurk, (so can I with  GREA,) and that law enforcement and government offices have been here. 

    It's not like they don't know who and what, their issue is investigating with "cause" and what is suggested or even admitted to on the internet doesn't meet "just cause".

    But, when a complaint is filed, watch out, and what was said may then be applicable.

    I assure you, your law suit case will be followed by criminal action.

    Entrapment is another issue for regulators, they can and do pose "undercover" but they don't post on the internet, doesn't mean they aren't here.  

    I see that attorney asked for audit documents as rope to hang that guy with, he can get more than that through the court later on, so if he pulls anything dodging the request, it's just more nails in his coffin. A simple name search at the Recorder's office will tell them how many filings he had, not rocket science.

     In recent years, the FTC has become more active in advertising matters in real estate, claims made and inducements, those fines are not cheap!

     Mail fraud is something that is usually tacked on to real estate and finance violations,  use the mail to further an illegal activity,, that gets serious.

    There are too many clowns in the center ring and  the gurus know a sucker is born every minute, there's no shortage of folks wanting to get rich the  easy way.

    Just selling to buyers you know doesn't cure any issue, it's the buyer's side and it takes some effort to be properly educated, too lazy or too naive to know the difference between an education and guru hype or a real estate site that needs traffic for advertising dollars.......it's beyond me, especially when you hand them a basic education for free! 

    Well, there's my rant for this week!   Good luck :)

    0Reply
  • Ethan Summers
    Austin, TX · Member since 2015 · 223 posts · 185 votes
    9y

    @Jose Castillo I started with 1000 yellow letters. If you remain consistent you will win!! 

    3Reply
  • Jose Castillo
    Flipper/Rehabber · Springfield, MA · Member since 2016 · 641 posts · 204 votes
    9y
    Thanks Ethan Summers . I really appreciate the motivation and positive energy.
    1Reply
  • Ethan Summers
    Austin, TX · Member since 2015 · 223 posts · 185 votes
    9y

    @Jose Castillo Anytime my brother there is plenty success out there for all of us! 

    2Reply
  • Jose Castillo
    Flipper/Rehabber · Springfield, MA · Member since 2016 · 641 posts · 204 votes
    9y

    See you up top my friend @Ethan Summers, ill keep you posted on my success

    1Reply
  • Zeshan Choudhry
    OP
    Investor · Toronto, Ontario · Member since 2017 · 28 posts · 4 votes
    9y
    Yes Ethan Summers thank you for the awesome advice. Glad to have had your input before I started anything. Will definitely connect!
    2Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    9y
    John Thedford , you come across as such an ahole. I say this as someone that tries to only provide helpful kind words on this site. Were you a hall monitor in school? Did a Wholeseller kick your dog? I do so many transactions a quarter with a variety of buyers and sellers and brokers and other professionals (even Wholeseller. i'm happy to pay money to for bringing me a good deal). Everyone I come across is typically very casual and agreeable. You seem like just the type of person that I hate coming across in business. The type who would run and try to sue me if I contract had a miss print somewhere on page 1000, paragraph 300, subparagraph B, sentence a.1307z If someone wants to hustle to find down and out properties that otherwise would not be listed on the MLS, and provide those deals to rehabbers that can fix them up and sell it to a family looking for a turnkey property, more power to them. No one gets harmed. Everyone does their transaction of their own free will. Believe it or not we all don't need big brother government to protect us. Trust me, I had second thoughts about posting this but I get so irritated reading your stuff that I couldn't help myself
    3Reply
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