All Forum Posts by: Dev Horn

Hey Tom Lafferty - you are asking excellent questions. I bet you can find 2-3 deals per year just building and working your social network. But you're right, finding deals on MLS is tuff when everyone else is getting the same info. One of the biggest advantages to doing your own marketing is getting calls directly from motivated sellers who are NOT in the MLS; i.e., they're only talking to YOU. My business is providing marketing systems for investors - I will refrain from pitching our services here - but just say that a small investor can look and act a lot bigger by licensing a great brand/system. Wishing you much success!

David Brauner - I remember this well, and really enjoyed this article. Thanks for sharing.

Great perspective on how direct mail works:
"The direct mail I sent was a series. Instead of sending one letter to a mailing list (in this case expired's) I created a series of 6 letters to go out every 2.5 - 3 weeks. Interestingly, I just sent out the third letters to the first group and the third letters have netted more call backs and appointments than the first two combined."

Thanks for sharing your experiences & results, Marty M.!

Welcome, Brian Lane. Sounds like you have a solid approach; wish you much success in REI!

Great letter! I think you covered all the bases there... Hope you are successful!

Integration with MLSs for comps.

Think about this - why will an investor pay a "bird dogger" $1000 for a solid deal?

Because it costs hundreds in marketing to find a solid deal. It could cost $800 or more to generate a good deal at the right price.

You may be able to generate a few deals thru social media and your personal networks, but if you want to create a SUSTAINABLE flow of revenue, you need a system that is fueled by marketing.

How much does it cost to generate a decent lead? Set a benchmark of $100. How many decent leads to find one good deal? Let's say 1 in 8. That gives you an estimated marketing investment of $800 to bring that deal to the table. Sure, you can generate a few bucks flipping those to an investor. But set a course to capitalize on those deals yourself, so you can make $10K off the deal, rather than the $200 you'd get for just being the bird dog.

Make sure you create and verify a Google+ page for your business address. Place a link to your main homepage from our Google+ page. In addition to your URL, you are able to define business related keywords on your Google+ page. It's no surprise that Google likes & indexes this content.

SUCH A GREAT DATA POINT:
"I just listened to the BP Podcast 012 with Sharon Vornholt and it gave great insight into her strategies behind her direct mailings. She said 81% of deals happen from the 5th letter/postcard sent."

That's good stuff!

How many people do you know that will do ONE, maybe TWO direct mail runs and then bail out due to not enough calls??

I like the formula that J Scott and others use where you back into what you'll pay:

Expected ARV
- Rehab Costs
- Fixed Costs
- Desired Profit
-------------------------
= What you are willing to pay

If the ROI is not high enough, and you find problems you didn't anticipate, that additional cost can only come from one place - your profit. It is hard to play the REI game at 80%+ -- the chance of losing your shirt on a deal is substantial.

I'm sure in a market where inventory moves so quickly and homes can sell above list price, it might be easy to get emotional about the deals. Try to stay objective. Man, CA is C-R-A-Z-Y compared to most other markets. BEST OF LUCK!!