All Forum Posts by: Dev Horn

I agree with John and Daniel that mostly your efforts should be focused on finding deals, but you do need to start building buyer relationships right away - you definitely need buyers, and finding one with no time to spare (after you get a contract signed) can be challenging.

Google the typical REI phrases like "sell my house fast" etc. and call the top ones - tell them you have a deal IN THE WORKS (typical 3/2/2 blah blah blah) and you just want to see if they will be interested if you get it under contract. Ask "Are you a CASH BUYER or a WHOLESALER?" - you only want cash buyers. Collect the names, email addresses, and phone numbers of those guys. This will get you going with at least a short list of buyers.

Point is - you need BOTH sellers and cash buyers.

 I agree with all of this!  Except I'm not sure what you mean by "run an algorithm".  =)

Just telling your Circle of Influence (COI) can be the best way to find your first deal or two.

There are 3 areas where you should consider placing your marketing dollars:

1) Direct Mail - Absentees w/ Equity is my go-to prospect pool.  Max that out before spending on other groups.  I also like Sr. Citizen owner occupants and probate.
2) Google Search (AdWords) - You want to spend all can here (on a properly structured search-only AdWords account).  It can be your best cost per lead, it can start producing quickly, and you can get leads from it throughout the month (vs. the burst of activity you might get from direct mail).
3) Outdoor - Signs work.  The leads are often unqualified, but good signs generate calls.

"You can't get there from here."

=)

We don't rush probates.  We like to mail to the PR/Executor once after the probate is filed, then again in 2 months, then a 3rd time 2-3 months later.  The probate process can drag out over a number of months.  Hitting them early is fine, but realize that they can't sell you anything until the process is complete and the deeds are changed to the names of the heirs.

You mail to the PR/Executor, not the heirs.  Mailing to the attorneys is also not a bad idea, but we don't do it (currently).  They can't sell you a house.  Some say they can recommend you as an option to clients - but developing relationships with the attorneys is a different marketing track IMO.  And yes, it might help if you play GOLF ;-)

You know what happens to a "probate lead" once the process is completed?  They often end up in our ABSENTEE OWNER list.  That's another reason I love absentee owners and recommend you mail to them before you consider probates.  If you are hitting all your absentees with equity, then probate is a good strategy to add to your marketing arsenal.

“When you walk with purpose you collide with destiny.” ~ Bertrice Berry

Use postcards in addition to letters.  Postcards are HALF the cost to print & mail.  Letters are fine I might do them every third mailing and postcards on the other 2.  Mix it up.  You might also check into the ZIP LETTERS at YellowLetters.com - I think those are very cool and different.  Yellow letters themselves are an older strategy.

Don't worry about CRM.  Your spreadsheet is simple and works fine for now (and the price is right!).

COACHES - where you have on-going support for 6 months or a year - are WAAAAAAY better investment than ANY 2-day, 5-day or whatever length GURU COURSE.

We recommend coaches that are not cheap, but they charge a flat rate for their training and mentoring, such as $5,000 per year.  Actually it IS cheap if it helps you REALLY get started making money in real estate - and that kind of professional is MUCH less expensive than a $25,000 weekend course which features a bus trip with a smelly long-haired burned-out reality TV star.

And you don't want to give 50% of your profits for the next 20 years to some info-marketer based in Phoenix.  That, my friends, is a CRAPPY DEAL.

If you want professional help getting your REI business launched, go for a real COACH and leave the GURUs and INFO-MARKETERs out of your life and out of your BUSINESS.

(Sorry for all the CAPS!  I am just passionate about this topic after seeing tons of VICTIMS, many here in BP...)

And regarding the OP, I avoid condos in general, and HOAs are a contributor.  Condos just don't sell like SFRs in most areas of Texas.  And comps on condos are often unreliable.

You didn't mention if your $110K price was at a significant discount to full market value (the "ARV"). If you're not getting a huge discount to market value, you're just acting as a retail buyer. How do you make money? Just off the cash flow? If you're paying full price, RUN FOR THE HILLS, MAN, there is no deal there and the risk is MUCH higher than the risk on SFRs here in Texas.

Not true.   @John Jackson is the king of lease options, based here in TX, trains people all over the state and across the county to do it.  He has a team that supports people all over TX who offer lease option solutions.

Sub2 is simply one way go & foreclosure is simply one form of motivation, so your marketing is the same as any other RE investor pitch, except you may mention the "we can take over payments" message in addition to (or instead of) the "we pay cash for houses" message. Direct mail is a better fit to this group but out there in Bude I bet you could rule the market with bandit signs.

I echo Brian in that you need to check your laws.  In our marketing, we mention foreclosure as one reason people might call us, but we don't pitch our offer as "Stop Foreclosure".

Sub2 is probably the best strategy for people in foreclosure because most of them have no equity in their house, otherwise they would sell it and get that cash rather than let the foreclosure happen and lose the equity.

Personally, I don't like foreclosures for that reason.  No equity + complicated situations = potential to waste an enormous amount of energy.  But if your goal is to do Sub2s, then go after them with that "we can take over your payments" message that will appeal to someone who might otherwise lose the house entirely.