All Forum Posts by: Rick Pozos

I send out about 1000 cards per month. I also drive for $$. Also, I have my sister and a few friends text me pics with address of houses that look vacant. I track down owners and talk with them or send a card. I know some of the BIG BOYS send out 5k or 10k postcards per month. They must be getting several deals per month.

Results: I consistently purchase at least 1 home per month. I know that doesnt sound like that much, but I am bumping up the marketing and my goal for this year is 30 rehabs, but 15 would not be so bad either. If you are buying right, you will make 10-30k per rehab. The houses that I sell are usually in the 100k-150k range, so 15k net is the norm after realtor, closing costs, etc.

You do get the truly great deals by direct marketing for yourself. 

It sounds like you need to stay on the sidelines on this one.  See who buys it and ask the new owner if you could learn from what they are doing. Ask them how much they paid for it and what they think the rehab will be.  Drop by every few days to see what they are doing. Use it as a learning experience that you dont have to financially be a part of.  It looks like a project that should NOT be your first. Some mentors charge 1000s just to be a part of something like this that you can get for freeeeeeeee.

There are and will be other deals out there. You dont want your first one to be such a huge monstrosity that can go REALLY bad quickly on you. Stay on the sidelines, but keep looking.

Sorry to be a downer, but YOU the person is what is important. I talk with lots of people everyday about their house. They rarely ask me what my company name is. They ask what MY name is and how I can help them. That is the important part. When talking with the owners of homes, it is more of a personal, face to face business. Lots of emotions, history, memories are involved where the seller wants a sympathetic person who can come in and help them out of their problem. When you are friendly, knowledgeable and ready to help, that is what is remembered. 

When marketing on a larger scale, yes you want to get the name out there. When you go across the state, or even across the country with marketing, you want a flashy name that everyone will remember.  But it is more for name recognition than for being catchy or cool. Microsoft, Coke, IBM, not "cool" names, but you know them because of the constant marketing and longevity of the company.

PS You can get a name, if you dont like it anymore, change it. Use a different entity to do your business. Close one down and start a new one.

vrbo or vacation rental by owner dot com is where I would look. When it gets a little closer, and they think they have found a place, you can always call, email or text me. I know the city quite well. I can even give them some knowledge of the city and what I know about investing here. Contact me or have them contact me anytime.

I have done a couple in the last few years, but there are so many more rules than before. Interest rate rules, no balloon, if you do more than 3 per year you have to get a loan originator to go through, and on and on.

It is still a viable option, but many rules that you NEED to know about in order to stay within the law. There is an atty who does closings in Austin for wraps. He seems very knowledgeable. The next one that comes my way will definitely be closed with him, T. Alan Ceshker.

You can not be shy. Meeting investors in your area is the most valuable resource. They will be able to help you and you can take them to lunch or hang out after the meetings.

if your seller is going to do 90 or 100% owner financing, your private lender should be ok with being in the second position if they are only lending 10 or 20% of the purchase price. 

I would let the seller do most of the financing and try to pay most or all of the rehab out of your current funds if you can. 

While I love to do the no money down thing, the seller financing thing is great, especially if it is at no or 3 or 4% interest. I dont think private money is going to be below 10%.

Partner with someone who has the big bank statement. If it is a great deal, you will only make half the profits, but half of a great deal is better than all of a deal that did not get done.

Realtors usually deal in the Retail market, not the wholesale market. 

Marketing. Driving for dollars. Friends and relatives, let them all know you are looking for someone who NEEDS to get out of their house. Who would sell you a house at 60-70% of market value?? Only someone who is feeling some kind of pain. It is your job to find the owners who have some pain so that you can be the one to give relief.

Private lenders are almost always acquired through networking. Friends or friends of friends. The more you are out there networking with other investors at the local REIAs, the more chance you will come across someone.

Ask some of the lenders that you already have if they know anyone else who has money to lend. People with a bunch of cash usually have friends that have a bunch of cash.

I would definitely let all your friends and family know what you are looking for and spread the word.