All Forum Posts by: Dev Horn

In a typical market - with Direct Mail - our cost per call might be $150 to $200 (advertising cost divided by # calls).  Those are good leads because we only sent them to/re: houses we want from sellers with equity.

Via Google AdWords, a web lead might cost from $75 to $125, but you get leads from anyone, and even get out-of-area leads from Google.  Cheaper the direct mail, but not targeted.  Still, web leads are often very good re: motivation because the seller is actively seeking a solution.

With Bandit Signs, I've seen guys spend $400 and get 20 calls over a weekend - a $20 cost per call.  Sure, they may not be qualified - but they are similar to those expensive web leads in that the motivation (of someone calling via a bandit sign) can be very high.  These people are interested in selling and seeking an alternative to listing with an agent.

So, on a cost per call basis, NOTHING beats bandit signs because they are so freaking CHEAP to deploy and people call from them!  And the lead quality can be similar to the more expensive leads you get from Google AdWords.

Hope my illustration helps to put it into some perspective!

If they never delivered that service to you, absolutely report this to your credit card company...

It's hard to say real estate guru offerings are "scams", as they offer a service and provide some real content and they have some (a few) who have had success with their programs.   They are pretty good at knowing how to package and upsell their programs and yes, their goal is to get everyone to the $20K event.  So, yes, it is a lot like internet marketing - it's ALL ABOUT THE UPSELL to the next "level".  At each level, the content offered has some value, it's just not worth what they are charging.  There are alternative ways to getting that training.

I don't like those paid course.  They have a 95%+ failure rate.

I prefer COACHING PROGRAMS with reputable coaches that train you but also work with you for the first year, helping you with negotiation and evaluating deals, etc. etc.  I think that is what most new investors benefit from the most.

That said - I like a flat rate coaching model - one fee that covers one year of coaching.  I don't like sharing deals 50/50 with a coach.  If they want that deal, tell them to put in 50% of the advertising.  Signing a 50/50 split deal with a coach can end up being a LOT more expensive that guru courses if you actually end up buying houses.

So, seek a great COACH, not a training mill guru that runs people thru those programs at the hotels.

"I don't believe you have to be better than everybody else. I believe you have to be better than you ever thought you could be..." ~ Ken Venturi

When I speed, I do it INTENTIONALLY.  If you want to take responsibility, then take it.  Breaking ANY law is not an "accident".  It's what we do when we don't feel like following the rules.  And there are so many freaking laws now, pretty much all of us are, in fact, law breakers are some point.  I see no moral high ground on that.

This is "one of those issues" that rarely is resolved here.  I have seen some (who shall remain nameless) compare bandit signs to selling meth or some other obviously far worse offense.  I understand the underlying sentiment, but such a comparison is foolish and just offered here for shock value.

Personally, I don't use them and they are not allowed in my city.  But given that there are people who've made tons of money using them, you are always going to get passionate defenders of them.

All that said - back to the OP ~

Any real investor (cash buyer) that I know will take a deal from a wholesaler if the numbers work.  The seller is happy, the wholesaler is happy, the investor is happy.  Exactly who in that scenario is complaining about the use of a plastic sign?

If you're making good $ buying from others, perhaps not.

The problem for many is that doesn't scale up to a larger business.  To really ramp this up and do some volume, you probably need to go direct to the homeowner (marketing for non-listed properties).

Buying thru others means you are paying for that privilege; there is higher competition for deals on the MLS and auction sites, and wholesalers will take a part of your margin. That's the other consideration - can you go direct to the sellers and make more than you would working via intermediaries....

We've moved many a house with just paint and carpet cleaning or replacement.  Paint smells like "new house".

I don't think you need to fire the agent, just re-price the house.  But Brian is right - the listing is stale - however it will get attention when you drop your price.

EVERY unlicensed investor needs a licensed "partner" to provide accurate information, namely, a Comparative Market Analysis (CMA) of the subject property, which includes "comps" based upon recently sold comparable properties.  Sometimes, it takes an agent with some years of experience in the area to know which properties to include as "comparable" - to address that issue that Mark mentioned above.

My agent partner, Angela with Keller Williams, loves me because I give her all my warm leads of people that really want to list (i.e, get a retail offer), and she does CMAs for me all the time, employing her 8 years of experience in our market here.  She is probably the single most important person on my team.

You don't need Zillow.  You need an agent partner!

You could use either a letter or postcard, but either way you'll want to customize the text to speak to their situation - delinquent taxes that have resulted in a lien on the home.  Letters can seem more personal; postcards are less expensive and don't have to be opened.  Either could work, but this might be a case where a well crafted letter is more effective.  Consider a vendor like YellowLetters.com who can create and mail customized letters for you.

You can simply say "we will pay off your delinquent taxes, freeing you from this burden and putting cash in your pocket, allowing you to get on with your life!" etc etc.

They have a problem and you are the solution!

For the love of all that is holy, please kill this thread!

Sounds interesting - thanks for keeping us all updated.  Still seems a little fishy now learning that the projects being done by their own construction company.

Yes, those should be liens on property and the title company is responsible for ensuring that existing liens are satisfied before anyone else is paid from the transaction.  This also ensures that you (or the ultimate buyer) get a clean title.