All Forum Posts by: Dev Horn

There is nothing wrong with selling leads that you generate from your marketing efforts. We have one company where that's all we do.

It makes total sense to monetize these leads. Agents will pay $100+ for them in good markets.

Hey Robert Joiner - Go Dallas! With mortgage banking AND marketing, you have a great background for this business.

>>> Sending positive vibes your way >>>> =)

Mason Valenzuela I don't think you get into "below retail" in a marketing letter. I actually like your statement re: "a fair price". If a house is super nice and in a desirable area, it can easily sell for retail price in a reasonable period of time. Homes that are in a state of disrepair, that need some TLC, would not sell for "retail" or "ARV", because they need work to get there. Those are your targets. You aren't low-balling people, you are actually offering a fair price because most of these people will not get a "retail" price unless they put thousands into repairs. The only way someone like you is willing to take that risk is if there is a profit motive for you. That's reasonable. See what I mean? Some people think we take advantage when we buy houses at 60% ARV, but there is real risk being taken in these deals. Money only likes risk if it is off-set with reasonable reward. Enough preaching. You're a business person, and the plumber, painter, or carpet cleaner do not explain their profit margins to you. They give you a number, along with an explanation, and you take it or leave it. Same thing in REI. If they don't like your number, no one is holding their feet to the fire. Be proud of what you do in this business. For many sellers, this is there only option.

Addiel Flores made a great point - be a BUYER. Most home sellers will not know what you mean by "wholesaler". That said, I appreciate the spirit of your letter, in that you are trying to be "up front" with people, but I agree with others that true motivated sellers really don't need that level of detail.

One thing to consider tho - if it sounds like you are just a guy looking to buy A house, you are going to get calls from people that assume you are willing to pay full retail for their house (with them saving the 6% Realtor commissions!). Sounds too good to be true! And... it is. By mentioning "no need to make repairs", etc. you can target motivated sellers with property that can sell at a discount. I assume that's what you want...

(Of course, if you are also a Realtor, you may want just about anyone with a house to call you... I assume you are not a realtor.)

Yellow letters can be very effective, and you have two of the masters advising you here in this thread.

Hey Timothy Gillette - actually I like your 4 step plan there because you emphasizes RELATIONSHIPS. You are only looking for 2 SFRs this year and I bet you can find them thru the relationships you have now + people you'll meet on BP or in your local REI club(s).

If nothing is coming in, you could try a few bandit signs or some other form of marketing. Direct mail requires a multi-touch approach to the same list so a lot of new people do a little and then bail out before they get any leads. Reading in BP can definitely help you avoid making newbie mistakes.

But you sound like you have a good understanding and plan; you should easily reach the goals you've set in the short term. WISH YOU THE BEST, BRO!

Hi Leslie B. - I like to say, "you may be able to buy real estate without money, but you can't do marketing without money". Many people are attracted to wholesaling because it seems "easier". It may be easier than a full retail/flip, but the hardest part is finding deals and that's true whether you wholesale or rehab/flip/rent. Just like starting any new business, you'll need to have a marketing budget and strategy.

The other key aspect of wholesaling is creating a buyers list - someone needs to buy that property that you find - who will that be? You should have a pretty good idea of that before you purchase property or make offers. Sounds like John above knows some people - use BP and local clubs, etc. to start building your buyers list.

Wishing you much success!

Michael Quarles: RESPECT. =)

P.S. When I provide a postcard benchmark price, I should note that I'm speaking of 8.5" x 5.5" full-color both sides. I also speak in term of fully loaded cost - List + Printing + Processing + Standard Postage. The postcard itself is only about 11 cents from a vendor like imageMEDIA in qty or 2,500.

I'm always looking for better deals/vendors.

Good plan - direct mail works but just think about this - 80% of your calls will come after you've contacted people THREE TIMES. And 80% of new RE investors do one or two mailings and bail out before they ever get the benefit. The first two contacts are really just generating awareness. After someone sees your message several times, they become more comfortable with the idea of contacting you. It's pretty much a relationship building process. Most people don't get that. They do one mailing, get disappointed, and move on to some other method.

Check out Click2Mail.com - they have good filters for the mailing list and their cost is about the best you can find (especially with those filters). But I think their printing & mailing is too expensive. Consider a vendor like imageMEDIA for the printing and mailing. You can do postcards for about 60 cents (total); the "yellow letters" cost about DOUBLE that, so I'm not a huge fan of letters. I also think they generate calls from people thinking you're some guy that might pay full retail for their house.

One last thing. Everyone thinks that the best list is Absentee Out of State Owners. They are right - that's a good list BUT I talked to one of those owners yesterday and he said he gets 3 to 5 postcards and letters EVERY WEEK from investors. That's like fishing in an area of the lake where 20 other fishermen have their lines in the water. You can either try to beat those guys with "better bait", or try looking for a good place to fish where there is not so much competition.

Let us know how it goes for you Jason!

Bandit signs are the cheapest and fastest ways to get calls. BUT, be aware of the local regulations - they violate city ordinances in most areas. However, if you put them out on Friday night and pick them back up on Sunday night, you'll probably be fine.

Direct mail works - but it takes time. It can take 3 weeks just to print and mail using standard postage (10 cents cheaper than 1st class, which is much faster). And direct mail really works only when you plan to send multiple mailings to the same people - you'll get most of your calls after the 3rd "touch".

Newspaper, in my experience is not very productive, but it's also not too expensive so 1 deal could easily pay for a month of ads.

I wish you MUCH SUCCESS Jason Badke!