All Forum Posts by: James Stockton

First 40 Mailers sent out 3/5/16

(3/12/16) 40 Mailers sent out

(3/13/16) 1 Call from a seller, will update when a meeting has been made. 

Hello All!

I've been starting up my wholesaling business here in Delaware. I've seen a few people new starting out that would like to know how the results are of direct mail marketing. I know I am one personally who wants numbers and factual information before making decisions. This thread will be updated probably monthly or as needed as my current results. I've never seen this done, but If anyone can point me to a post, I'll gladly revise that statement. 

Basically for all the newbie wholesalers I'll show you what a direct mail campaign will look like in my area. This is not only to track my personal results for a better bookkeeping, it's for all those who may be stuck. This post may be the one that pushes them off the fence into action. If anyone would like to add their stats on direct mail marketing or results they have had, it would be greatly appreciated! *RESULTS WILL VARY* 

Originally posted by @Joel Ortiz:

hey Marcos, I don't have an answer to your question, but is it better to mail to evictions that just straight absentee owners? 

 Joel, It's a great strategy to use Both. Evictions will possibly get you rental properties at a great discount because the landlords are more motivated to sell. Also, there is more chance of them selling with creative terms (i.e. owner financing) since they are investors also. Absentee owners are a volume game. If you're into flipping, I think absentee owners will be more beneficial. If you're going for more cash flow, eviction records will be helpful. If you're a wholesaler, marketing to both is where you want to be. 

As for how long you should go back, I would say within the 6 months is the farthest I would personally go back. If you were having bad tenants and management issues, that one eviction could be the last straw before you sell off. 

Happy House hunting!

Be careful wholesaling in FL! Some wholesalers have been fined in Florida for wholesaling because it's considered real estate transactions without a license. I would research the laws in your county and state before proceeding. However, driving for dollars is a great one. List source can be good for absentee owners and out of state owners.

Oops I completely missed the mark on my last post. I thought you were asking how to get a mentor. My bad! I have a few people I use as backup calls, no mentors really but I met them either at the REIA meetings or at the pub after.

Hello there! One of my biggest mentors is someone who said "I don't mentor" simply because he is too busy with his volume. He gave me a few hints though on how to find a great mentor. -go to every REIA meeting within 3 hours of you (that one seemed crazy to me, but I did it when I could) -come early, stay late Most people don't look to mentor people. The best mentors you'll find are experts that do it their way but you have to seek them out. Most of my best meetings have been an hour after the REIA meeting ended at the bar nearby. -Bring deals to the table! Who wants to come to dinner with no meal prepared? Find a deal or a potential deal and ask investors if they will walk you through it. Offer them commissions or profits. I'm not sure how far you are in the process, but these have been the most helpful to me. I'm hopeful they can help you too!

I'm very interested to see this outcome, I have a friend working on a similar deal. I was suggesting if the area is flooded with 2/2s it could be worth being advertised as a low priced 3/2. Hope all works out!

I would factor in vacancy to your formula as a con being in the red. That's a hard question to answer because I think it depends on how aggressive you are in REI. Would cash flow from your other properties be able to sustain that loss if you had a tenant move out? Or if you had a capital expenditure? Personally I'd be one to find another deal that can actually cash flow. Possibly wholesale that deal to a local investor who can secure different financing that would give you more capital for that next down payment. Not sure how far you are in the process but that's my opinion.

I don't think anything should be bought on the premiss of it appreciating. Coming from the financial markets, I can tell you that's a foolish play. It does happen on times, but don't bank on it. That's only a small part of it. I think the best deals are based on intrinsic value of the home. That's where you'll find the best ROI if you can get a property around that area. Any appreciation will be bonus.

That's motivation for sure!