All Forum Posts by: Nancy Conrad

I'm not sure I can help, but I'll throw in my two cents as an investor and someone who's spent a career in marketing. The response you got to your mailing was realistic although not at all satisfying. I spent a good deal of money on Yellow Letters and we got angry calls, rambling weirdos, and one woman who assumed the letter came from a 'special needs' person. "Sweetheart, you can't afford my house," she said in her best condescending tone. 

In the end, no one wanted to sell their house to us because of the Yellow Letter. People were more suspicious than curious. 

Marketing can sometimes produce great results but you never know what's going to happen. Success comes because you keep at it.

Let me suggest that Yellow Letters don't lend themselves to a followup campaign. I prefer to send several pieces - 4-7 letters or postcards that let people get to know you through dependable regularity. If you keep mailing something every month, eventually someone is going to call you. Even better, drive people to your website where they can sniff around you and what you do without ever calling first. 

If I were making a HML then I'd want skin in the game too. However, it sounds like you should be looking for funds from an investor-partner who might be happy with a straight 12% and some kind of negotiated bonus when you sell the property on the flip. Why not go to self directed IRA investors?

You did great - but I'd be looking for a higher ROI.

You can sell and get two more at half the price, OR, you could sell it at the increased value with owner financing. That way you're off the hook for HOAs, taxes and tenant issues. You get all the income without the responsibilities. You can later sell all or part of the note, and the accumulating income can go to buying the next property.

The downside is that you lose some tax benefits, but if you buy and hold properties in an IRA, you already get tax benefits.