All Forum Posts by: Lucas Machado

Welcome @Michael Carrington!

@Akialah Ansar It depends. We rarely traditionally wholesale anymore. Our two current deals are moderate level rehabs, and the prior one that closed in April we purchased, took ownership, listed on the MLS after clean-up and securing the property. If it is out of our farm area / skill-set, a traditional wholesale would be the primary option.

Why not a run a split test? 50% postcard 50% other option you are considering.  Run that for 4 months and you should have a reasonable sense about cost per lead.

I purchased my latest absentee owner list off ListSource.  However, I use PostcardMania as a vendor for postcards and they have a list vendor with access to similar lists.  I now purchase my lists through PostcardMania.  For whatever reason, the list I purchased from PostcardMania was more effective than ListSource (I thought they would be identical; but there were in fact differences even using the same criteria; 2 deals I got off my PostcardMania list weren't even on the ListSource list; no idea why).  It is also helpful for me to keep my mailing needs "under one roof" if it can be feasibly accomplished.  The price was approximately the same.  PostcardMania also has better customer service than ListSource (for the most part, ListSource you are on your own it seemed).  To be clear, I have no financial stake/interest in PostcardMania but I have found them to be a responsive and helpful vendor.

@Dominique Littleton

When I hear "pre-foreclosure", particularly with regard to properties purchased from 2003-2007, my mind jumps to underwater homes and short sales.  We have successfully assigned short sale contracts for marginal profits, but it did not work well.  It is substantially more difficult as banks commonly have restraints on re-sale and requirements to disclose agreements/understandings.  In that case, a wholesale is either impossible or unethical.  Moreover, banks can take months if not over a year to process a short sale.  We just waited on a short sale rehab project for over a year delay after delay, only for the bank to come back with a new appraisal and offer price for over $40,000 more than our contract.  We cancelled.

We have been successful when a homeowner is simply behind on their mortgage and/or other payments (but is not underwater).  It creates additional seller motivation.  We did not find those leads as "pre-foreclosures" per se - we found them as part of out-of-state absentee direct-mail, probate direct-mail, and online marketing.  Perhaps targeted pre-foreclosure direct-mail leads can be effective, though, I haven't tested it.  If you do try, take detailed records and share!

I wish I could be more specific - but you didn't outline your financial resources, time constraints, goals, interests.  Whatever you try, be meticulous about testing it and pivot based on your findings.

Welcome to BP and the wonderful world of real estate @Troy Jones! Let us know how we can help you on your journey! 

Anthony Herbert Both direct-mail marketing and SEO/pay-per-click are profitable when done right. Like anything else, it will vary market to market and you need to test your approaches to maximize results. Note however, as far as SEO, the pay-off is 6-months to 12-months down the line when your site ranks up, unless you can pay for advertising at the start. You will not have much immediate profit via website. The key is in testing, follow-up overtime with your leads, and ability to execute. That goes for direct mail and online. You need all 3 to be successful at least in South Florida. Rarely is it a simple matter of getting a call and closing an easy deal.

@Isaac Kessler - There is SO much wholesaling going on down here. Any sign you see along the road while driving around was likely put up by a wholesaler - call them. I find that the vast majority of people at the REI meetings are wholesalers, so attending those is another good way to find them.

BREIA and DREIA are the two biggest meetings in the Dade/Broward/Palm Beach area. BREIA is tonight (first Wednesday of every month). 

@Account Closed hard money lenders are typically going to want you to bring around 30% of the cash needed to do the deal. Some advertise that you won't need to bring that much, but that may be for more seasoned investors. I suggest focusing on activities that are less cash dependent while you are building up your capital, ie working as an agent and/or wholesaling. 

Welcome @Jacques Menzel! Best of luck in your journey - let us know how we can help!

Welcome @Josh Darville!