Its been a while since we've checked in. It has been a very busy 2 months. For those that do not know we are located in Raleigh,NC, the #1 housing market in the US, fact not fiction. We found that out and started wholesaling IMMEDIATELY. With absolutely no experience, no money or job, my partner and I started a company. In 3 days we formed an LLC, in August 2012 and 60 days later we have reached an agreement on 3 wholesale deals totaling over $40,000. We are days away from closing and it is exciting. The ease of wholesaling only motivates us to do more deals. 10 deals before 2013 is a goal we are striving for as a company. Without goals your company has no vision nor path. Last 60 days we've met some incredible people and networked with knowledgeable investors. The TIME is NOW is a common theme talked among all investors we speak to. Now is the TIME to be investing in Real Estate, no matter what your strategy is, we just chose to wholesale. See you at the top!
Stephon and Ed
Hey Stepon (and Ed!) Congrats, this sounds awesome! Would you be willing to share some of your strategies for finding deals? Are you using direct mail, door knocking, etc? And are you selling to retail buyers or other investors? People love hearing success stories! Thanks!
Thanks! Of course we would be willing help anyone looking to get into real estate investing. We are currently using direct mail, flyers, bandit signs(if u dont use them, dont expect to be successful) and other creative forms of marketing. We are selling to CASH buying investors/builders/rehabbers who are investors. Our 6-8 month company goal is to build capital and start rehabbing to sell to retail buyers and make a bigger profit. Hope this helps!!! See you at the top.
Stephon and Ed
Just one question. You said you started with no money. Please share how you purchased all the direct mail, flyers, and bandit signs. I would love to know how you managed this with zero money.
Hey Josh, great question. I got creative man. I had a yard sale one Saturday afternoon. Made about $250 selling old comics, video games, teddy bears, man it was all kinds of stuff out there. Turned out and ends into profit, instead of making an excuse, I made it happen. By the way, all those things I still purchase from Dollar Tree.
Stephon I like your enthusiasm, and I have to agree that the dollar store is a great place to buy direct mail supplies.
I do have some questions. Who are you targeting with your direct mail, and how did you compile the lists? Also, how are you finding your Cash Buyers?
Congratulations on your early success. But I do have a question; You titled this thread "Hottest Market in the US!!!" How many markets have you done business in? This year alone, I have sold in Virginia and California and bought in Texas and Tennessee. I am checking out Las Vegas next. I also own property in Colorado, Arizona and Oklahoma. I have been a Real Estate Investor for about 35 years now. I have made money and lost money, in hot markets and cold markets.
I have heard that NC has been a good market for a couple of years now and that is wonderful. But as your business grows, remember to always keep an open mind to the many possibilities with regards to markets.
Great questions! Our direct mail letters target owners of distressed and vacant properties. Probates/Estate owners as well. We get our lists from driving around(be economical), probate list at courthouse and my realtors (must have a power team everyone). We mail out the letters using a script on yellow notebook paper, attached our business card, and send away. A new tip from an investor we got was to put a $1 bill inside the envelope(dollar bill showing in window of envelope) and inside a statement saying "there's more where that came from, give me a call!" with your card and letter. Creative and has helped him with good solid leads. Finally we find cash buyers with bandit signs(must use), ghost ads, and REI meetings. GUYS u must go to these meetings!!!! Dont listen to the non believers. Ed and I traveled to Charlotte from Raleigh this morning to attend a $3 meeting and we met 3 CASH buyers looking for wholesalers to work with. Self-explanatory. SEE U at TOP!
So if I understand correctly you are at almost $1.50 per letter with the $1 bill and postage? Seems a bit high per letter and that's not including the other costs involved that I left out such as paper, pens, envelopes, your time, etc.
What is your response rate using this method and how many and how often are you mailing?
You are 100% correct. I send out about 40 letters/wk. Spend about $50 give or take. You'll get about 4 solid leads, 5-10 returns, and the rest no answer. Out of those 4 leads you close 1 deal, profiting 5-10K. Was that $50 investment worth it? Warren Buffet says "focus on the what not the when". Everything takes risk. Don't contemplate, take action. Yiou want to mail out weekly, create a system, so your business and money can work for you
You are getting a fantastic conversion ratio, Stephon. Kudos. How many deals have you closed?
Thanks! We've been inc. since 8/23. 3 Deals in first 60 days. Awaiting 2 closings next week and one in December. But that's not enough. 10 Deals before 2013 is the goal. Its fun, its exciting, and its really easy! No money, no credit, just patience and determination is all you need. I never thought I could sell a 300K house with less than $5 in my bank account. Only in America! See U at the TOP!!!
Hey great for you!!! keep up the good work..
Thanks! Whats going on with the Eagles?
Keep up the good work Stephon!
See you at the Top!
Thanks! I promise we won't stop. See U at the TOP!
Stephon & Ed
RM Equity Investments LLC
I LOVE your enthusiasm and resourcefulness. Those two qualities alone are enough to stack the deck in your favor no matter what you decided to do for a living.
Best of luck,
Stephon: congrats on a busy and productive 2 months. Loved hearing about your marketing. None of the deals have closed yet, but are days away from closing, correct?
In your OP you say that others will not be successful without bandit signs. If bandit signs are working for you, that's pretty much all you know....that they are working for you in your area. I know a lot of really successful investors, including some in NC and they don't use bandit signs. In some areas, using bandit signs would put you at the top of the list for code enforcement action. It might be helpful to remember what you don't know or can't be sure of when making suggestions to others.
Wow! Thanks man. My partner Ed and I are the same way. Motivated to succeed and willing to help ANYONE who is looking to do the same. Thanks again
Stephon & Ed
Hey! Thanks for the post. Your right. I totally agree! I know quite a few investors that are very successful without using bandit signs.
We are days closing and we are excited! As far as WHOLESALERS, which we are, I said "don't expect to be successful" not that you can't be". We've met numerous wholesalers and Investors who started in wholesaling and at some point they've ALL used bandit signs. We use all forms of marketing, so I disagree that bandit signs is all we know.
As far as code enforcement, its not really enforced on the weekends, so our signs go out FRIDAY night about midnight-2am, while everyone else is partying, and we pick them up SUNDAY night. So during the week, the "code police" never see our signs. Hope this helps! See u at the TOP!
Stephon & Ed
i like your enthusiasm but can you chill on the "see u at the TOP!"?
Hey! For what reason should I stop saying "See you at the top?" When we get to the TOP, that's when we'll stop. And honestly we probably wont stop then. See u at the TOP!!!
Stephon & Ed
This forum is the help, inspire, and motivate others. We are not here to argue , downplay, or disrespect anyone. If you have something to say or ask please do, we respond to all, but from this point forward, if its not about RE investing or how to better yourself, it really doesn't matter. See U at the TOP!!!
Stephon & Ed
I'm a new Real Estate Entrepreneur, as well. Literally just jumped into this within the past two weeks. I have a strong list of leads, but no houses under contract just yet.. very soon, though!! My husband is my business partner, and we have the EXACT same enthusiasm as you do! It's great to see someone as excited as you! I got a bunch of great tips from this thread, so thank you! I wish you nothing but success, and I'll see YOU at the top ;-)
ok, i'll see you @ the top then! :)
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