All Forum Posts by: Jerry Puckett

This being Texas and the "Wild wild West", you're going to see all kinds of hokey mom and pop side deals like that. You dot have to participate.

A "non refundable deposit" is a contradiction in terms. In most cases, landlords have no intention of ever giving a "non refundable" deposit back. (hence the phrase "non refundable" ). Even Business friendly Texas would have a hard time with that when the tennant pushes the issue.

Texas law (Section 92.006(a) of the Texas Property Code) voids lease agreement provisions that attempt to give away tenant rights regarding security deposits found in the statutes; thus, it is a little unclear if a "non refundable deposit" is actually enforceable. It would be an uphill battle to say the least.

I know you are certainly not intending to keep this PM or that arrangement, so in negotiating, say it with your contract. 

Paragraph 9B(5) of the "1 to4 Residential Trec Contract" states:

If you are not using the trec, borrow this language and write it in as a special provision, or use it as part of an "Exhibit 1" along with some language to empower it. 

Hope that helps!! 

This is a trend. I did two deals last year with couples on either end of town who simply wanted enough money for a nice RV, and they were going to hit the road. Both wanted the money sooner rather than later and willing to trade some equity for the speed and ease of the transaction.

The first one I thought interesting, the second coincidence, but now a third....trend :-). 

@David Wurzel

Congratulations! Or should I say "Well done, you have passed within the Third Circle"

Hmmm...I guess congrats because the other sounds creepy....

But it is absolutely a benchmark. A couple more to go:

• First Time Law Suit Threatened
• First Time Police Called
• First Time Physical Violence Threatened (Did you listen to those calls Michael Posted?)

And the Grand Daddy of them all....

• Getting your letter published on Facebook along with a very public rant inciting others to violence and mayhem and a request for Guido

When you've done this, you know you've arrived!!

I'm surprised it took so long for you to get that call David....your letters must be much friendlier than mine and  @Michael Quarles. That's some rough stuff man!! 

In speaking of opportunity cost, meant more along the lines of time spent with family and friends. My time is precious to me...ESPECIALLY the weekends. Folks who know me know that Real Estate simply funds my first love:

Just in case you were curious.....yes, that IS a 2017 SG Gold Custom....plays like a dream :-)

Just thought I would chime in here since this is a thing that comes up every so often. You have not calculated the cost of your time into your cost per piece. 

I bill my time at $100+ an hour. That run of 400 would cost me $800+ (in addition to the 63 cents per piece) and that's just for the time itself....but what about the things I may have missed spending my weekend working?

But let's say $20 an hour...it costs more than $150 in addition to the supplies to produce 400 pieces. People in this business, especially the newer ones often forget to pay themselves which is one reason so many fail.

Your time is your most important asset....the opportunity cost of your time is very high. Using those hours to better understand the market, talk to sellers, network with your team....all likely to produce higher returns. 

On the other side of the closing table, cashing that big check, trust me, you're more likely to say "wow that was a lot of work, how can I make this easier?" than "woo-hoo, I saved $100!". Just sayin'

Unlike money, which there is always more of, once your time is gone, it's gone. 

As to the paper jam, regular 20lb paper should work in just about any desk top printer. If you are using actual yellow sheets torn from a pad, that's 16lbs at the most, and I have terminally jammed many machines....I'd suggest switching to regular yellow paper and print the lines on it before blowing up a printer.

Most DM companies will be willing to use any sort of envelope you are willing to pay for. Looks like a pack of 500 costs about 8 cents per piece.

Hope that helps!

Hi @Neil Sinha

Lesson number one, and it's a biggie. Wrap your brain around it first and then I can be more specific.

You CANNOT motivate a non motivated seller.

No matter how good you are, which "pitch" you use or whatever your personal beliefs on Seller psychology, you cannot motivate someone who is not already motivated by their own situation.

You can however CONNECT with their motivation, whatever it may be. Triage every incoming lead, determine the best exit strategy for that situation and their cash needs, and then move them towards what is already their best option.

Sometimes that is going to be a retail listing, but not always. Sometimes it will be a sub to, lease option, or even a short sale. You do not have to master every strategy if you do not wish to, but network with at least one master of every strategy. Monetize as many leads as you can by becoming an information broker....transactional engineer, or whatever the current guru buzzword happens to be.

Point is if they called you, they have a need. Figure it out and fulfill it. The "pitch" will come naturally if you are really trying to help.

@Brie Schmidt, you said this was a "This is a no-pitch, no ******** event" so I'm excited about telling the truth on what it takes to find deals in the current market. So much misinformation out there.... and most just MAKING STUFF UP.  

We're going to keep this real world and sustainable.

I'm also looking forward to meeting back up with @Dave Van Horn and @Bill Exeter. (and Brie of course....always informative, inspirational and just FUN :-)  I've always wanted to meet @Joe Fairless...I'm a fan.

And if there is anything I'm looking to learn, I'd like to fully understand short term rentals, AirBnB and other platforms. So looking forward to meeting @Syed Lateef 

(I also like @J. Martin's model. Maybe we'll see his flip flopping self and hear that ukulele....)

Good stuff man. So, how much time did you invest in the getting of the permit, the webinar, the learning curve? How much for the permit? I hear "time, nothing to it"....but how much of your time does it actually take to produce 1000 letters?  Just hand stuffing and stamping letters on average goes at about  200 pieces per hour....so 5 hours just for assembling (not including print, etc). That's after hours or weekend family time....

All @Mitch Messer and I are getting at is that it's important to consider the whole cost including your time. Unlike money, which there is always more of, once your time is gone, it's gone. 

BTW, the Epson Workforce R4640 has large tanks of refillable ink and we figure the cost at roughly 2 cents per page. 

I'm not fond of the results I get through bulk mail. In general, I'm not fond of tripping over pennies on my way to dollars.

Hey @Scott Graham,

At the risk of sounding like a letter salesman, you're actually offering up a very costly alternative from the perspective of a serious Investor or Wholesaler. Let me explain. What follows is largely an excerpt from what was essentially the same conversation a couple of years ago. It cycles back around every so often.

How much time did it take you to complete this task start to finish?  I suspect that even at 500 letters it likely took more than 5 hours. For a run of 1000, even with all supplies on hand,, a minimum of 8 hours...that's a full day's work! What is the cost of your time? What do you make in your day job?

I value my time at $100+ an hour. That run of 500 would cost me $1500+ But let's say $20 an hour...it costs more than $100 in addition to the supplies to produce 500 pieces. People in this business, especially the newer ones often forget to pay themselves which is one reason so many fail. 

Your time is your most important asset....the opportunity cost of your time is very high. Using those hours to better understand the market, talk to sellers, network with your team....all likely to produce higher returns.

So in the end, which would you prefer? Spend your time marketing, or making deals? 

On the other side of the closing table, cashing that big check, trust me, you're more likely to say "wow that was a lot of work, how can I make this easier?" than "woo-hoo, I saved $100!". Just sayin' 

Yes, more than once per month is obnoxious and will produce diminishing returns. I generally mail to evictions 3 times. In my experience, the Seller's are at peak motivation after the eviction is filed, but before the case is heard. This is a moment that makes or breaks some Landlords....they want something done NOW, but are waiting on the Court. Sometimes it seems like the wheels of justice turn slowly.

In Texas, they certainly don't. Texas is extremely business and Landlord friendly, but the emotions still play out. I offer to take over and handle the eviction for them, mentioning that I have a really good lawyer. I mail the week the eviction is filed, one month after that, and then a third follow up six weeks after that. 

Once the Court has made it's decision, and the big headache is gone, most Landlords go back to being pretty happy with their asset rather quickly.

Your observations on timing and motivation are very astute, but I have found more than 3 touches to be a waste and accelerated mailing to be non productive, even harmful.

One other note....I RARELY hit a home run with this list. But it's good for a few base hits per year.