All Forum Posts by: Joshua Martin

Hey gang,

  I thought I'd put this up to the trusted BP community, ask you guys to tear it down, and then I'll build it back up. (I also apologize in advance if this gets just a little long - I'll do my best).

 So I'm planning to start a marketing campaign with my partner in exactly a month's time. We first want to wholesale deals before we put other tools in our kit. We have a budget to send out 1500 pieces of mail each month for six-seven months, and in my head these are the steps between here and there for the next 30 days:

 1. Legal coverage. We are both real estate agents, and he is also an attorney though he doesn't specialize in RE law. We need to first figure out how we operate as a licensed person assigned to a brokerage because we want to do this whole campaign separately from that (for marketing reasons).

 2. Choose a list. This is where I could use some advice. I understand the basic options, and have listened to the podcasts with Michael Quarles as well as the ones with the other wholesalers, but are there strong reasons you would recommend new wholesalers choose one particular list? We are thinking about working probate. He has done a bit of legal work in this area, and I've gone through the process personally. I know there are some hoops to jump and processes to learn with any strategy, but it's all doable. Also, everyone on the podcast says absentee is over worked, do you guys think that is because it seems like the easiest list to mail?

 3. Marketing pieces. I like everything I see on yellowletters.com, and might just use that for all the pieces, though we are looking into other avenues (my friend knows a local printer, for example). Would everyone be kind enough to maybe throw out list sources as well as marketing platforms that provide these services? (In addition to listsoure and listability).

 4. Set up lead capture. What services are available in addition to google voice for bouncing calls to my cell phone during the day and my partners at night? As well as a prerecorded voicemail if none of us are able to take it? (As well as saving the number for quick call back?)

5. LLC? I'm not sure it's necessary at this point, but it only takes 20 minutes to do and it might be worth it because then when either of us signs a contract we can just use the name of the LLC rather than our own.

 6. Design scripts so we can standardize and systematize all of this and how we deal with sellers.

 7. Systematize.

 8. Close deals, scale marketing, and hire VAs.

I believe we already have the contracts covered. In WI its just the WB-11 'and/or assigns' clause with a separate assignment of contract that my partner is currently drafting. 

Additionally, what metric tools do people use for tracking response rate, lead capture, etc, etc.?

If you read to the end of this I heartily thank you, whether or not you choose to respond.

Thanks in advance, I wouldn't be doing it without BP.

Best,

JTM

P.S. I'm not sure this was the best place to post this, so sorry if you see it again elsewhere.

@Will Barnard

Thanks for the insights. I plan to start a marketing and wholesaling campaign shortly in the Milwaukee area, and these are valuable insights. I've even thought passingly about calling it realdealz or something cheesy like this, because of the common complaint I've heard that wholesalers just aren't bringing actual deals to the table. Not at all my intention, and going in I believe it's important to conduct oneself in an intelligent and honest manner, overestimate rehab and underestimate ARV.

 With my aims I hope to be among the successful and trusted crowd you're talking about.

JTM

Money Mustache is the man, but I can't consider myself a true 'mustachian' because I don't ride a bike everywhere (for crying out loud). That said, MMM, the MadFientist podcast, getrichslowly.com, and earlyretirementextreme.com have all revolutionized my views on money and what I do with every dollar. Like @Scott Trench, I'm combining the frugality of the early retirement community with the wealth building power of real estate.

And I plan to retire in 10 years ;) Seriously, I'm going to make it happen.

Best of luck,

And luck up 'the surprisingly simple math of early retirement' on MMM. Also listen to the mad fientist, he might be my favorite.

JTM

@Scott Schultz

All good inputs and bonuses that I'm sure I'll encounter down the line.

But I wanted to ask about your market: you don't see wholesalers up there? And why not? Market share too small? Deals still sitting on MLS? Or do the investors market directly?

I'm pretty sure there's market share and room for this in Milwaukee. In fact, every REIA meeting I go to I encounter several cash buyers, but they're looking for actual deals, meat on the bone.

From what I gather down here, MLS is much, much tougher than it was a few years ago, and if flippers don't want to market directly, it seems like it makes sense.

There's also several people doing it successfully, Rebecca Holmes and Captain Save a Home seem to be kicking ***. 

Best,

JTM

@Dylan Haywood

listsource and listability are the two big names, and you can create accounts and tweak lists and see what they cost on both. I'm doing the same right now. There are probably others, but those seems pretty helpful and straightforward, but will of course require diligent research as to what parameters you want to use for your leads. 

Best of luck,

JTM

What are your aims? Why do you want to get it at all? I say this as someone who plugged in this way, is waiting for the state (of Wisconsin) to approve mine, but now I want to wholesale. I have an attorney doing some research for me, but I'm not even sure it was necessary. I decided after enough research and networking that working as an agent in a traditional sense is not how I want to get into this business. To be quite frank, it seems like a waste of time. But your aims could be entirely different. Best of luck either way, but just to say quickly and lastly, having your license in all 3 states before doing deals sounds very expensive, you will likely have to pay realtor association fees for each. JTM

Hey @Akialah Ansar,

  If you plan on using subject to then I assume you plan on holding these properties as rentals? It's a niche I'm yet to read anything about, but there was that podcast a while back with that wonderful woman who has done great building crazy wealth for her retirement with this strategy. 

  But specifically, it depends on what you want to do with those leads. If you want to hold these as rental properties, then where do they cash flow? What are the B/C areas? What are you comfortable working as a landlord? 

 Based on my research (just this evening) list source allows you to get fairly specific in terms of municipality, zip code, and I think there are even mapping features you can use, but I think those end goal questions would be important first of all. 

 Very likely someone understands what you're trying to do and will be of more help than me. 

Best of luck!

JTM

@Daniel Elijah Richardson

Hey Daniel,

  First off, way to get out and do some mailing (I'm assuming, if you have the lead, but maybe not), I'm in the same boat and looking to starting direct mail in a month's time. 

 But next, what I'm already putting in place is a bit of help with the initial deal or two. I've been networking for a bit and so already have people that will walk through it with me and I'll be happy to split the wholesale fee (really at any percentage they want, but I assume 50/50). That is what you need. Call some local wholesalers in the morning, tell them you have a lead, and offer them 60/40 because of the short notice and the help you need. 

If you don't have comps and know the ARV then you really have no business writing an offer.

JTM

And prices over there are so low there is certainly potential for appreciation, but I wouldn't bet on it. Definitely not an emerging market.

I would call that a C- area. Plenty of city owned foreclosure all around there.