All Forum Posts by: Melodee Lucido

Hi Frank and welcome to the funnest crei place online! You're going to love it here.

I like Quickbooks also!

Best of success to you

Hello Glenn,

Welcome to BP. It's a great place to be. What @Dean Letfus said is the truth. Have you considered direct mail? It is probably the best way to get leads. You can learn a lot here by typing it into the search bar.

As far as price point; if you are buying in lower end areas as Dean mentioned make sure you are buying even cheaper than you would normally. Run the numbers by someone here that actively works the market.

Let me know if you need any help!

best of Success to You.

I have talked to a couple of BP friends about this post I wrote last night. They thought I was a sales person for Michael---I am not. And they thought that I was narrow in my views.  So I am writing some addendum and stuff that should have gone in the above post. 

I said that about the yellow letters because I get so many junk callers with them ---people that I feel are time wasters. (my impatient flaw showing up). I know that there are other types of yellow letters than the basic ones. If I were to do a yellow letter campaign I would use one of the more targeted letters out there.

I like post cards better because the ones I use I created myself and they are cheaper than a letter. I am still a newer investor and wholesaler and make every penny work hard for me. Those who are new to DM really should work with an expert in the industry.

Let me clarify another thing ----> Yellow letters do get the phone ringing and bring good leads---I just am not patient with the "crazies" that call along with the good sellers. This is my problem not the yellow letter's fault.

As I was writing the previous post----flying through it way too fast----I forgot to mention a dear BP acquaintance that I admire and respect. @Jerry Puckett has been a huge help (really) to me and I know he has DM services also. He is very personable, and knows this industry well. He is one of the rare breed of very experienced, hugely successful investors that answers the phone and takes time to talk---wow. I am just getting ready to order a large list from him. His prices are amazing too. Jerry, if you happen to read this please forgive my error in not mentioning you n the previous post. 

A good business person does the market research needed, finds out what the options are, talks with people he/she might want to work with and decides what direction to go. Then the learning process begins :-)

Best of success

Josh,

I know a lot of people say that buying and holding out of state is risky but it just isn't true if you pick the right people to work with. I moved into the Memphis market to invest and to wholesale 15 months ago and have had a wonderful experience there. This isn't a sneaky pitch to get you to work with me. There are several great turnkey providers here on BP.

IMHO business plans are made to be edited, expanded and re-written. Don't stress about unforeseen things that make you adjust your course. It's all part of business . . and life.

Since you don't have a lot of money to work with maybe you can look for some seller finance deals. They are out there.

My advice is to start having conversations with people one on one. Look at their inventory; compare with others' inventory. Ask questions and verify everything. 

Best to you

Hi Brandy and welcome to awesome BPLand (better than Disneyland!)

I have just expanded my market to Nashville. If you hear of any yummy deals let me know.

Oregon is so wonderful. I am very ready for a nice vacay there.

Best of success to you and your partner!!

Hi Luke,

Welcome to BP! You will love it here.

I love DM and have used it for generating leads for years.

So you have your budget all set---very good. To get the most bang for your buck I would go with pcards. @Michael Quarles has a great site where you can choose which one you like best---and he has some super choices. if you go to his profile here on BP you will see the link.

He also sells lists ;-) I love OOS (out of state) owners and free&clear lists.

Some people use the same postcard every time; others will use the same one for 4 consecutive mailings---over a period of 4-6 months and then switch. The reason for this is tracking. Another word for marketing is, wait for it, TESTING. Everything s a test to see what works best in your market.

You sound like a good goal setter. One possible deal is a reasonable target. I like to send out no less than 500 per month to start. The most important part of DM is REPEAT mailing. It is 100x better than mailing to 2k names and then not mail again for 3 or more months. I recommend mailing to your list every month or at the very most 6 weeks. If you can mail to 1k names every month so much the better!!

One other thing. DM is kinda like going to Vegas and playing the slots. Well, ok, it's a bit better than that. But I have had some mailings of 2k pieces that brought me zip, zingo, nada. Sheesh, that wasn't fun. It's all about timing and consistency.

You didn't ask but I'll say it anyway.  like more targeted mail pieces---so I reeeealllly don't like the standard yellow letter. I mean really. I like handwritten name and address rather than labels too.

And if you have other questions I'm sure Michaels people will steer you right.

Best of success to you

Josh,

Welcome to BP!

It takes time to learn areas to invest in. I wouldn't go jumping on a plane to travel and see cities at this point----just pretend you're in a 1st class airplane seat as you do your research from the comfort of your home.

You could do a search here for "cash flow properties" or "best cities for cash flow"---something like that---and see what comes up. See what people are talking about. Maybe choose 3 cities and then do a search on those to learn if they might be what you want. Talk to some people here that invest in those cities.

Memphis has lots of properties that you could buy at that price point and cash flow, mostly in C+ - areas. I would strongly advise that you check with investors in any city you consider. For instance in Memphis you may find something that looks like a KILLER deal (especially coming from a Ca viewpoint) but with more detective work find out that it is surrounded by boarded up homes or is one street over from the war zone. I'm not joking or exaggerating. This is where having a strong network you trust will, literally, pay off.

Above all, it is SO important to take your time, study much and make some friends here. Ask lots of questions. You will find the "just right" property if you do these things.

Best of Success to You

Derek,

As @Dean Letfus mentioned you can set up marketing for the properties with all of the important data. The buyers will find you because they are actively searching online for cash flowing properties that they don't have to worry about.

You can decide what you want your margins to be based on the comps in the area and what your prospective buyers are looking/asking for. I like to give my buyers a bit extra by selling under market comps---about 80%ish.

With our turnkeys we provide excellent referrals for PM, contractors etc. As @Ryan Mullin said it is a lot to handle yourself. That's why many partner up with others to get the job done.

Delivering excellent service on very nice properties at great prices keeps the buyers coming back for more ;-)

Best of Success!

Ryan,  am happy you got your rentals!

Saying this might not make me popular but I do not play the old time negotiation games and I tell potential buyers that right up front. I am building a business of credibility and trust. If I say I want a certain price and then snicker under my breath knowing I'll take a lot less it makes things more time consuming & stressful for all and breaks down any kind of win-win relationship that could be possible. 

I know many try to get the very last penny out of a deal---on either side. For me, if it is a good enough deal, as you stated, at $50k and the numbers work for me I say, why not? This works well for my buyers because they know that I am not playing mind games; that i am a straight shooter.

When dealing with sellers I am equally straightforward. I know what number I need to be at---usually---unless repairs are much more than disclosed up front.

This biz can be stressful enough by it's very nature. I work to simplify it as much as possible. Just my 2 cents ;-)

Hi Sam,

Welcome to BP. You're gonna love it here ;-)

How are you finding your deals? Are you working with wholesalers? Direct mail? MLS? Sometimes Summer can be a bit slower but I haven't seen it this year. Memphis is still the hottest of my markets right now.

Are you working with a PM for your tenant apps? 

Best of success to you!