All Forum Posts by: Brenden Mitchum

Hey @Richie Thomas! First off, thank you so much for the input! I knew there was something I was getting wrong because quick calculations in my head were not matching up at all with what the calculator was spitting out. The calculations and numbers make much more sense to me now. My issue was just lack of knowledge with the specifics of the hard money aspect there and how this is properly put into the calculator. 

And I 100% agree that one month rehab is unreasonable. I was just trying to change all kinds of numbers and figured if I still could not get a decent return at this mythical 1 month rehab time there was definitely something up.

I now have all the numbers right and the cash flow and ROI look much more realistic. In fact that ROI kind of blows me away. Guess that's the power of BRRR investing!

Thanks again!

@Frank Geiger that makes a lot of sense. I recalculated with private money and it turns out to be a pretty sweet deal. So now just to find some pm! Thank you for the advice and information!

Thank you, @McKinley Crowley! I will be sure to add the addresses in. I agree that this makes it a little more personal and feel less like a mass mailing campaign.

Thank you, Erin! I'll check out that site ASAP!

Thank you for the advice, Jonathan! 

The "not to low" is not in the actual letter. That is just a placeholder for where I would insert the offer amount. 

I will definitely add some more information about how I can help them and why they should choose to go with me rather than someone else. 

Would you expand on that urgency idea? When do you choose to utilize this technique in your mailings?

Oh also do people typically list the address of the property or leave this open to encourage the owner to reach out regarding any of their properties?

Great point! Thank you, Jeremy!

Dear [Owner Name],

My name is Brenden Mitchum and I am a new small business owner in [area of interest]. My business is buying houses! I specialize in homes some may call “ugly,” but I see the potential beauty beneath just waiting to be uncovered. I am NOT some big house-flipping company trying to make a quick buck off your home. I am a long-term investor looking for property to improve and hold on to, thus ensuring a long-term improvement of the area we both live in.

Perhaps you are tired of being a landlord; dealing with vacancies, finding responsible tenants, repairing damages, etc.? Maybe you just don’t have the time or money to fix up the property and list it with an agent? If you’re interested, I would love to buy your home. I can offer you [$$$, hopefully not too low] CASH and a quick closing with no repairs needed on your part. Please feel free to contact me by phone or email at any time of the day to discuss your home and its future!

Respectfully,

Brenden Mitchum

Brenden Buys Houses

[my number]

[my email]

I am also debating adding some more personal information about each property, specifically. I am not sure if this will help or put off the owner who may think I was out snooping around their house without their permission.

Any advice is much appreciated!

Any thoughts on how to make this a better deal?

Really my goal here is to determine the profitability of my market and how much I should be offering to buy homes in my direct mail campaign for the area. I'm willing to accept that this may just not be a great submarket at the moment, but only after thoroughly looking into it.

Can you please explain why I would need to bring 20% down and 20% of rehab to a HM lender? I have not yet spoken directly with a lender yet but I was under the impression that with the market where it is, getting a HM loan with low down is quite doable.