All Forum Posts by: Matthew G.

@Philip Bashaw I've heard good things about https://oncarrot.com. Carrot's feature set seems to be more data driven. It allows you to track what campaigns are working so that you can improve your conversions. Of course this only matters if you are actually diligent about tracking your marketing campaigns. If you just want a site and will rarely check your dashboard and analyze metrics, then either site would probably work for you.

@Chris Perrin Whatever you decide to write on the letter, make sure you have a way of tracking and measuring which copy (marketing lingo for advertising text) you used that you got responses from. If you want them to contact you by email for example, use different emails for different letters.

Once you know which copy is working the best, you can retarget people who didn't respond the first time around.

@Brent Zande My understanding was that AirBnB has their own host insurance protection up to $1 million if any damage happens to your home during a guest stay. You would just need renters insurance or something for days when the home isn't rented out and something might happen.

You'll be alright.

Keep in mind you are purchasing an asset and not a liability. Unlike a car purchase that loses value once you drive off the lot, you are purchasing an asset that should increase in value over time. There are risks in real estate like any other investment, but with proper due diligence, you can minimize those risks. Getting proper inspections and appraisals can help you feel more at ease. You will at least know you aren't buying a house with many pre-existing problems and that you are buying at a reasonable price within your market.

Again, you'll be alright.

@Charles Kimber The important thing is you keep on networking and learning. Think of starting a real estate business as a marathon rather than a sprint. It takes time to develop relationships, so don't get discouraged that you haven't landed any deals yet.

As a wholesaler, your biggest efforts will be in marketing. Constantly test different marketing strategies to see what works best. Don't just follow the herd and do what you've read in books or heard on podcasts. With the internet, there are new advertising channels popping up all the time. Experiment, collect data, and analyze the data to react appropriately.

Once your marketing strategy starts to work, focus on building relationships with your leads. They found you through your marketing, now it's your turn to show them why they should be working with you instead of someone else. Show compassion for their situation, try to be helpful (since they are most likely a distressed seller), and follow up with them.

There isn't really a shortcut to this business. Just hard work and persistence.

@Nicholas Lemmond Welcome to BP.

Without any savings and with both of you starting new jobs/business, I would recommend you wait. Just keep learning and networking. You can start planning how you are going to get financing a couple years from now. If you have friends and family that can loan you money that would be helpful. If you have to go a more traditional route, make sure you save money and try to get a W-2 job so that it will be easier to qualify. Best of luck!

@Albert L.

1) HML wouldn't take a 2nd position to lend you a downpayment plus they wouldn't allow an owner-occupied property.

2) It doesn't look like you've include MIP required for FHA loans.

3) As for rehab costs, it's hard to guess without any pictures of the interior. The house might just need new paint and flooring or it might have major structural and fire damage.

4) Rental prices are absurd in the Bay Area, so I'm guessing someone will pay it.

5) What do the comparable say the ARV is worth? If comparable are around $875k then why are you doubting yourself?

@Seth Gendron If you don't have the funds to get financing from HMLs then you'll need to work on finding a partner that can provide the capital. Try contacting more HMLs because you should be able to find a lender that only needs 10% down + origination + fees.

You probably won't qualify for a business line of credit if your business is new. 

PM me and I can send you a lender that offered 100% financing. They might have ended the program recently though.

@Or Basan There is no average conversion rate from google ads. Conversion statistics will be highly dependent on your sales pipeline. If your webpage just asks for their info and doesn't give them anything in return, you will probably have a low conversion. If instead you offered a market outlook report or some other thing of value in return for their email address, then you have a lead capture system that you can nurture over time into a sale.

@Satch Bernhardt I've never done cold calling, but I've done other marketing before unrelated to real estate. Imagine you are an archer. Right now you are shooting an arrow blindfolded. If you happen to hit the target, it's mostly luck. Even if you had more arrows (higher volume) you are still relying on a lot of luck to hit the target multiple times. Rather than using more arrows to hit your target, you should remove the blindfold.

The point of the analogy is that you need to focus on increasing your conversion rather than your volume. If your conversion isn't great, more calls won't change that. Are you cold calling and not getting any additional information from the recipient? You might want to try to get an email address so you can send them additional info and touch back with them multiple times after your initial call. If they weren't interested when you called, they might be a few months from now. If you kept in touch and nurtured the relationship, they would be more receptive when they are ready.