All Forum Posts by: Arthur Garcia

HA HA HA HA!!!!!!

The send might get a strong response rate Dev Horn - lol!!

@sean - center of influence marketing is actively marketing yourself to the folks you interact with most frequently - family, co- workers, relatives of friends, etc.

What often works well is a few letters to family/ friends letting them know what you are up to these days regarding Real Estate. Typically you'll want to mention you offer referrals on any leads you end up buying. My wife and I send out holiday cards to everyone and aren't shy about mentioning our business at soccer games, birthday parties, etc.

AG

Jimmy Hong - Bako is my home market and YES, it is mega competitive.

Dion DePaoli - actually, that makes perfect sense. The loan would be a simple interest loan of roughly 10% with a balloon due in 5-10 years.

Based on what you're saying, I can deposit the interest payments directly into their account. I guess they would need to discuss taxation with their accountant.

I just got tripped up on who would pay the taxes on the interest payments if they don't have a social security or tax ID. In the past, I've been able to issue the private lender a 1099 for the interest I've paid on their capital.

Dion DePaoli - when I do my taxes and I write off the interest paid to the foreign investor, how do I handle the 1099 situation? Does that even apply? Say they make $8000 over the course of a year.

Do they have to form a corporation here in the states so I can tax their C-corp? Essentially, they're C-corp would pay taxes here and they would pay taxes on the balance?

Sorry - I'm not sure I'm making sense.

Also, I agree hiring a lawyer to handle a portfolio tax exemption might be cost prohibitive on such a small amount of capital (the lawyer fees might soak up all the yearly profit).

Dion DePaoli - Thanks for the detailed response. I REALLY appreciate it. I agree with everything you've said, in fact, I've used an mortgage servicer before. However in this particular interest, I was curious see if anyone had any experience with invest foreign capital - I.E. pounds.

Hey BP,

I have a property under contract for ~80K.

I have a family relative who is interested in a trust deed investment (1st position). However, I'm not sure how the taxes and interest payments would be calculated or accounted for.

Does anyone have any experience in this matter? I'm open to hearing the community's thoughts....

Best,

AG

@Al - here are a few resources that I have found helpful:

The no BS guide to writing a sales letter Dan Kennedy ( title is something like that)
The ultimate marketing strategy Dan Kennedy ( title is something like that)
Outrageous marketing for outrageous results bill geyser or something like that
Duct tape marketing don't know author's names

I'm a big Dan Kennedy fan - yes he up sells in his books, but the content and psychology insights are well worth the cost. If I were you I would Drop 50-60 bucks in used books on Amazon and study the craft of sales copy.

I hope that helps.

AG

Lance H. - Yellow Letters are just another marketing medium, like postcards - so yes, they can work. The bigger question is - would sending a Yellow Letter send the right "message" about your company to your potential customer.

The main reason investors use YLs is to come across as a "mom and pop" or want the marketing piece to seem "informal". This may or may not be the message you'll want to send to your prospects.

Which ever direction you decide to go with - make sure you go with a campaign (multiple "touches" over a period of time) vs a shot gun (1X mailer) marketing strategy.

As an out of town owner who outsources property management - I'm never 100% satisfied with any of the PMs I use, so in a sense, I'm always LOOKING for someone better.

That being said, I probably wouldn't switch PMs based on one mailer. HOWEVER, if I've received a few pieces of mail and one happened to end up on my desk as I was trying to fill a vacancy - I would probably give you a call.

I get quite a bit of mailers from various PMs and I can tell you that NONE of the them have ever sent me more than 2 pieces over the last 3 years.

Here are a few things I that would make me take a second look at your company:

* Multiple mailers - I've already explained this above

* Professionalism - I probably wouldn't respond well to YL. However, you can still avoid getting tossed in the trash bin immediately if you have the outside of the envelope hand-addressed. I'd also scan in a few highlights (w red pen) - underling your call to action, a quick note like, "looking forward to your call", and circle/star any important pain points - tired of dealing with non-responsive PMS or something like that.

* Pain points - here are a few "hooks/pain points" that would cause me to look elsewhere: incompetent mgmt, non-responsive personnel, no help with coordinating "rent ready" process, don't send before an after photos for any contractor-related work, a very difficult to read monthly income statement and finally, non-accessible MGMT (don't return phone calls, forget to do things, etc.)

Purchase some marketing books on Amazon - take a look at a few of Dan Kennedy's books. Another book I really liked was "duct tape" marketing.

I hope this helps!

AG

Karen Margrave - yes, I have a story.

Last year I partnered with Steve L. on flip. We bought the home for 265K, drop 60K in repairs and resold it for 455K. I need more friends like that - lol!