All Forum Posts by: Yu L.

thank you Jerry Puckett and K. Marie Poe

Michael Quarles What's the rationale to market to group #2?

2) Owner Occupied
40% equity or better
15 year ownership or longer
SFR
3-5 Bedrooms
65 years or older of deed holder

I understand they have equity and
they might want to downsize because of old age.
However, they don't have a bad tenant to
make their life miserable.

It seems to me that it is a group realtors would
target to in order to get listings
instead of investors trying to get a deal.

Any deals that you have done in this category
that you can share the story behind why they want
to sell at discount?

Sabrina Carapia, as mentioned in the previous reply, my call back rate is about 0.5%, I put out 300~350 letters last Fri. and I got 2 calls this week.
1 guy told me that his property has been put on the market and sold recently.
The other guy told me that he is not selling the one I mentioned in the letter and wanted to sell me another one, he is not motivated at all, he wants market price.

Alison Miller, the response rate is ~ 0.5%, for the calls I got recently, it is mainly from the new areas that I started marketing to after I revamp my campaign. For those who have been receiving letters from me for years, I don't get that many calls from them.

Raquel Baranow thanks for the advice, usually when a letter bounce back, if USPS put a new address on it, I'll just put the letter in a new envelope and send it to the new address, if there is no further info. I would just skip. What services do you use to find the address in that case? I have heard of Merlin skip tracing but never use it.

However, Michael Quarles mentioned in another thread, it makes more sense just to skip those and focus on a good marketing campaign and that is my question on this thread. What is a good marketing campaign, what do I need to do?

Wayne Brooks and Ned Carey the numbers are different in my market comparing to yours. The entry level SFR w/ 3 bedroom in my area can easily cost > $500k. A typical reasonable SFR or townhouse for professional is from $700k - $1M or more. The realtor can make $10k ~ $30k on commission on a typical sale, so being an investor, it doesn't make sense to make less than the realtor.

Because of that, a typical deal could easily cost 6 digits to acquire.
Let's use the entry level SFR to do the math. ARV $500k, 70% - repair ($50k), it could easily cost $300k or more to buy a flip, if we put up $300k just to make
$10k or $20k, it is not a very good investment at all.

On my last 2 deals, the net on each one is more than $50k.

However, if there is any other way to make $10k or $20k easily on the "non home run" deal, I would be happy to hear.

I need help to improve my marketing system to generate
more deals. I learned this system from my mentor,
he is able to generate 3-12 deals per year using
this system, after trying it out for the last 2.5 years
and average 1 deal / year, I believe I need to modify
the system drastically in order to get more deals. I am looking for properties to flip, profit in each deal needs to be $50k or more.

Here is the old system:

I have been consistently sending out roughly 1500 letters
to absentee owners.
(letters with hand written envelope and signed).
I have list of nearby cities that I target, I'll run
through the list every 6 months. i.e. the absentee owners
will get my letters roughly every 6 months.
(My targets are SFR absentee owners who have owned for over 12 years
and didn't re-fi in the last 12 years)

I have revamped my system a bit this year
and the new campaign kicked in since April.

Here is my new system:
This year I also market to condo / townhouse on top of SFR.
For far away (>2 hrs away) absentee owners,
I mail them monthly instead of every 6 months.
(However, for absentee owners within 2 hrs distance,
I still mail them once every 6 months, I also eliminate absentee owners who
live in the same city of the subject property.)

I am marketing to the following groups as well:
-people with federal or tax lien
-delinquent property tax
-landlord filed eviction
-divorce couple
-probate
-inheritance list

I am sending out 2000 - 2500 letters each month.

I have found a little success with the modification,
I am in contract with a lead I got from landlord who filed eviction.

My goal is to improve my system so that I average 1 deal or more per month eventually.

My focus is target marketing (that's why I eliminate landlords who live
in the same city of the subject property, I believe those are low potential leads)

Any suggestion would be welcome.

Thanks in advance!

Burt L. This might create a similar list but not the exact one.
You can go to Listsource.com and try these criteria:

1. equity %: 91-100%
2. Total Assessed Value: pick a number that is 50% or less comparing to the median price in your target area (I am not sure about your market, in my area, as long as there is no "real sale" happening, the county can't bring up the assessed value to market value, thanks to Proposition 13 in CA)
3. pick all the absentee owner

Sharon Vornholt, thanks for sharing. There are some useful articles on Sharon's website regarding probate:

http://louisvillegalsrealestateblog.com/category/probates

Russell Ponce,yes, you should use the decedent's name to check if they own any property, don't just rely on the petition file. Usually probate investors drop the case with surviving spouse. I don't know about surviving children though.