All Forum Posts by: Steven Leigh

 I wouldn't have put it so harshly, but I have to agree with the sentiment. I can't believe the negativity toward the automation of a business. Yes, it's a people business, that's why he's trying to automate so that he can spend less time stuffing envelopes and more time with PEOPLE!

To the OP, you're on the right track. As soon as you can afford to automate the mailings you should do it. Using a service like yellowletters.com is great, and if you want something more personalized, they can even do that. Think of your time as worth about $500 an hour. Would you be paying someone $500 an hour to do what you're wasting time on? No.

Others mentioned hiring a VA in the Philippines. I haven't pulled the trigger on that one yet, but I know others who have and it was a game changer. You have to screen and test people a lot, and you may go through a few before you find one that works. You need someone who is extremely detail-oriented. They will all say they are, but you can even test them in your screening process, like asking them when they apply for the job to include three quotes about X subject, with the quotes in italics but the name not in italics, etc. I know that sounds crazy, but what you will find is that you'll get a lot of people just blasting your ad with their resume. The really detail-oriented people will follow your instructions exactly.

Then it's a matter of tracking EVERYTHING you do into EXACT steps. You need to break your entire business down into repeatable steps and documentation so that if I replaced someone in your business I could be up and running in an hour and follow the clear manuals to know how to handle every situation. What happens when voicemails come in? What happens after a call? How does the VA set appointments for you? How does she contact you about your appointments? What info goes into your database? etc.

It's a process, but if you get all of these things running without you you can focus on the things you personally need to do. And eventually you can hire acquisition managers to do your part as well if you want. Then you have a BUSINESS and not just a JOB.

I don't really do bandit signs either, but I've heard that "I Buy Houses" tests better than "We Buy Houses" and apparently the guy who started the We Buy Houses brand is trying to sue a bunch of people for using the phrase. 

Not that I'm recommending or not recommending this site, because I've never used them, but Dirt Cheap Signs has a lot of different formats and ideas.

http://www.dirtcheapsigns.com/Custom-Yard-Signs.ph...

I've also heard that handwritten signs get a better response, but I would think it's pretty similar to handwritten versus professional letters. Some people are drawn to one, while other people are drawn to the other. Some would rather deal with a scrappy individual while others want a professional business. That's also why my marketing includes both types. ;)

@Benjamin Barredo That's a tricky question. It really depends on how you plan to drive traffic to it. Are you going to do pay-per-click of Facebook ads to drive potential buyers to your page and then try to get them to sign up? Or a Craigslist ad advertising discounted investment properties? Then yes, it's a good idea.

If you're just planning to put it up so that people might stumble onto it from Google or something like that, don't bother. No one will EVER see it. I don't mean that to sound harsh, it's just that there are so many websites out there. People think if you just put a website up people will find it through Google. Your site will end up on page 45,782 when people search for the terms that fit. :)

However, like I said, if you have a plan for how you're going to reach potential buyers and you want to give them a place to land, yes you should absolutely have a landing page.

Do a search for "squeeze page" on Bigger Pockets and maybe on Google and you'll see what people generally use for buyers lists. Here's an article from REI Tipster about one:

http://retipster.com/squeezepagethatconverts/

For now, though, your time may be better spent reaching out to local investors at your networking meetings, getting their info, etc. And you can try to connect with people here on Bigger Pockets who work in your area. Keep in mind, most investors really want to be on your buyers list. They would love to see as many properties as possible in a week, as it's really hard to find deals right now! Some of them won't be serious cash buyers, but that's okay. You can weed them out later.

Also, realtors can be a REALLY good source of cash buyers. And the cash buyers who work with realtors will often pay more than seasoned investors, because they are used to looking at MLS properties that are 90% of retail and considering that a great deal. Seasoned investors want 60-70%. If you come to those people used to 90% with a deal that is 80% you like a rockstar!

Call a few realtors in your area every week and tell them you are an investor who sometimes have more deals than you can handle, and they are great deals for investors. DON'T mention the word wholesaler at first, because realtors seem to run in fear from the term for some reason. :) Tell them you are only interested in cash buyers who can make quick decisions, and the realtor can simply add their commission fee on top of your price when they market it to the buyer. You want to make sure they always get their full commission on each deal. They love that. :) Some will bite, some won't understand what you are doing. And you may have to sort of train these realtors a little bit, as they are not used to working this way, but eventually you will get some that see the value in what you're doing, and that they can make a few commissions a month from your deals. All of a sudden they are your best source for buyers! They'll be jumping in the car as soon as you send them a new deal.

Also make sure you look at the link for cash buyers I posted above. Work your way through a few of those ideas a week and just keep building your list. Never stop building it. The wholesaler with the biggest buyers list always wins! After a while, your list will be so hot that you can go around to other wholesalers and be like "do you have any deals you can't move? If I can bring the buyer would you want to do a 50/50 split on the fee?" Pretty soon you are doing a few JV deals every month and you don't have to do much work for them.

@Pedro Recarey I wouldn't necessarily recommend the BP Wholesaling Calculator as I find that thing to be a total mess.

I keep posting this comps video in so many threads people are going to start thinking I'm a shill for Sean Terry, but he absolutely nails it with this system. Say what you will about how simple it is, and lots of investors have the opinion that wholesalers are supposed to be experts in repair costs, but I can tell you that almost every one of my deals closes for almost the exact numbers I estimate with this spreadsheet calculator.

Wholesalers waste WAY too much time on valuation and repair costs when they could just do ballpark figures and then get out there and do more deals!

https://www.youtube.com/watch?v=Cqgz5OpqvNU

@Darius Gill and @James Syed making your own list is a great way to go, or filtering down from a massive list, which is what I do with tax delinquents in my area. It starts with 35,000 entries but I can get it down below 1,000 in no time.

But don't forget that once you have a little more budget and better deal flow going, you can hire a Virtual Assistant or a local assistant to do some of that list prep for you. Find someone who loves data-driven repetitive tasks (they are out there!) and hire them to do it every week for you.

I wouldn't say it's overrated, but in any hot market there is always a LOT of competition for direct mail. Sellers sometimes show me huge stacks of all the yellow postcards they've received. It's a mystery why they happened to call me, but they did. Of course, I use a custom letter that is a little different than the norm, but it's still just a mystery why my letter might work with this seller but your postcard might work with that seller, etc.

That being said, any kind of marketing you can do outside of direct mail usually has the benefit of much less competition, so if you can find a niche that no one else is doing, or things like driving for dollars you may be hitting sellers that no one else is marketing to. If you're just getting started these are great things to try because they cost less and they are more targeted. 

@Ryan W. It's a hotly disputed topic.

Some say wholesalers need to be experts in valuation, and need to know how to do really accurate repair cost estimates down to the board, etc.

I actually go the other way. I make sure my numbers are tight on my end and just go with a broader, blanket repair cost based on square footage and condition. I document all the repairs that need done, and pass that on to the buyers with a broad estimate, but it's up to them to do a walk through and do their own repair estimate. My buyers share this opinion and they always do their own walkthroughs and estimates. Why would they trust someone else anyway???

If I were buying a property, I definitely wouldn't trust someone else to make all of the repair estimates, unless they worked for me. And every buyer's estimates will be different anyway. One rehabber will do a roof for $8k while another can do one for $5k because they have a roofer who cuts them volume deals, etc.

As a wholesaler my job is marketing for deals, providing good info to the buyers, and letting them decide on a price that works for them. 

Here's an example of how I do comps and repair values, which I got from Sean Terry. It makes it easy to estimate all the numbers in about 10 minutes or so and then you can modify your repair estimate once you've seen the condition of the house.

https://www.youtube.com/watch?v=Cqgz5OpqvNU

I do assignment fees that come out of the closing so I get paid by the title company from the buyer's funds. So it goes like this.

$100,000 value house that I get under contract with the seller for $50,000 because it needs repairs, they are motivated, etc. We sign a purchase contract that says I have the right to buy it at $50,000 and we close on or before 30 days from now.

The buyer agrees to buy it for $60,000 though they are actually buying the contract. We sign an assignment contract that is assigning my full rights in the previous contract to this buyer for a price of $60,000.

We go to closing, and I make sure the title agent knows I get the difference of $10,000 as an assignment fee. The buyer wires in the funds of $60,000 plus whatever his closing costs may be, so say it's $64,300 or whatever. The HUD (a breakdown of the whole transaction and all the fees) will have all of the buyer's fees, all of the seller's fees, etc. The seller gets their $50,000 minus whatever taxes and fees that come out of it. The buyer gets the house.

The title company makes out a check for me for $10,000. 

Does that make it clearer?

PM me if you need any extra info, contracts, or I could even send you an example HUD.

@Benjamin Barredo A word of caution. Don't just start sending properties out to the 50 people who were at the meeting. You're just going to piss them off.

You're better off sending an email introducing yourself, tell them you are a wholesaler, etc. and would they like to be added to your buyers list?

Good tips and links above. I'll just add one more.

http://retipster.com/buyerslist1/

Work your way through all of those, and then repeat!

I agree with "quality over quantity" to a point, but the wholesaler with the largest buyers list always wins! The larger your list, the faster the deals will go, and for a higher price.

Another tip: Send your deals to everyone on your list at the same time! Don't let buyers talk you into showing it only to them first. There is no benefit for you, and they just want to try and get it at a lower price before there is a "bidding war". Guess what? The bidding war benefits YOU.

Build relationships with some local buyers for sure, and if you have a property with a tenant that is hard to get into, for example, you might just show it to one or two buyers who can make a quick decision. But in general, don't let buyers talk you into giving them deals first as it will drive your prices and profits down.