All Forum Posts by: Andy Cross

Hey Carlo, there are definite advantages to closing with cash, and then refinancing once you own the property. The biggest advantage is the ease and quickness of the transaction when you purchase it. 

You'll have to shop lenders, but I know many banks will refinance before the 1 year mark- you'll just have to call around. When you get a refinance, there's no money down you have to come up with. Lenders will give you a refinance based on the Market Value of the property. So if the value is $150,000 and your lender says they will refinance it 70% LTV, that means they will give you a check for maximum $105,000 (70% of $150k). The result will be $105k in your pocket (less any closing costs, fees, etc) and a loan on your property for $105k.

Happy to help with any other aspects! Jake 

I have been mailing to absentee owners for about four months now, a total of about 2300 mail pieces.  We made about 150 offers and closed one deal.  Not great numbers. We are continuing to mail around 1500 pieces every 6 weeks or so, many to the same owners we have already mailed to, as I have read and heard the same thing, that you need to touch them at least 4-5 times.  Motivation requires a change in your life situation, and that may not happen over a period of just a few months.

But the majority of the offers we made were in nicer suburbs with good ARV's, most had no mortgage and had good long term tenants and good cash flow. So there was no distress, no urgency and no life circumstance that was forcing them to sell. We have begun to cull the nicer suburbs and focus more on middle class areas where the motivation might be higher. And the fact that prices are rising is another reason that owners/sellers believe they can do better with an agent. And many of them may be right. But consistency and persistence are very important.

I have been writing my letters by hand to cut down cost, but sacrificing volume at the same time because working full time and balancing family life doesn't leave as much time as I wish.  I have been using a very generic message so I will take a look at postcards to see if it is feasible.  Thanks for the help, advice, and encouragement.  Now that I know that I'm on the right path I just have to be patient and keep moving forward.  Thank you everyone!