Help me NOT over analyze, please...

[Jessica Gourdine]

Ok, so, I've been reading the books and blogs, searching Bigger Pockets, listening to the podcasts, doing my research and I'm more than fired up to finally launch my investing career by first learning and gaining success in wholesaling. There's only one thing that's holding me back.....ME! I guess I'm nervous and, for some reason, I feel like I need to know EVERYTHING before I move forward; the dreaded analysis paralysis. But I'm determined to make this happen so I'm hoping that, to help remove some of this anxiety, you guys can give me your expertise on a few questions I have. I'm sure there will be many additions to this list, but here it goes:

1. What info goes on to a postcard that doesn't go in a yellow letter?

2. How often should I mail to my lists and how much is too much?

3. Is the same info sent in each mailing or should there be different info in, for example, each yellow letter or post card? Or is it best to alternate between letters and postcards?

4. I want to make sure I understand ARV and how to come up with an offer price? If a house I'm interested in is valued at $100k, I'd take 70% of that ($70k) and then subtract whatever repairs are needed (say $10k), and that would be the price I offer to the buyer ($60k); so the price I offer to the seller would be less than that (say $50k) and that's where I would profit?

5. What does it mean and why is it a plus side to have a high equity owner?

6. As a wholesaler, what other costs do I need to factor in when I'm setting the price I'm presenting to a buyer? Does the wholesaler usually pay any closing costs or title fees, etc?

7. What are a few questions I should always ask sellers when they make that initial phone call?

I believe that's all for now. Thank you guys for reading this long post and for the great help I know you all will give me!

[Eric Black]

Hi Jessica,

Welcome to BP and congrats on getting started! There are no right answers to a lot of your questions and you can find answers to many of them by searching BP.

1.) If you have a business name or website, typically this would go on a postcard but not in a yellow letter. Again, this is not a "right" answer and others may disagree. The general contents are the same though. Check out www.yellowletters.com for some examples of both.

2.) Again, people will vary on their opinions. Some people will say every 1-2 weeks. Some will say every 3-4 weeks. Some will say something different. You just need to try what you are comfortable with, and what's within your budget, and see what works.

3.) You'll get differing opinions on this as well. I typically have 3-4 letters that I use that I rotate through. Not major changes but just so it's not exactly the same each time. As with the others, try one approach for a while, then mix it up and see how your results change. I haven't tried using postcards yet so I can't comment on that.

4.) ARV is what you can sell assume to sell the property for if you're selling it on the retail market. So if ARV is $100,000 then that's what you would hope to sell it for. You use the 70% rule to determine your offer to buy the house. You make your money when you buy, not when you sell. If ARV is $100,000 then you offer $100,000 - 30% - repairs - your fee (assuming you are wholesaling the property). So $100,000 - 30% = $70,000 - $10,000 in repairs = $60,000 - $10,000 for your fee = $50,000. So your offer to buy the house would be $50,000, or possibly $60,000 if you were going to flip the property. Search "70% rule" on BP and you'll see a lot of posts and articles.

5.) If you have a seller with little to no equity then you have to buy the house for what they owe (typically) which leaves you little room for profit. If they have 40%+ equity there is a lot of room for negotiation.

6.) If you follow the 70% rule then you'll have plenty of profit built in to cover any costs you incur as part of the sale. Those costs will vary depending on how you are "selling" the property. If you are assigning the contract then you don't have any fees. If you're flipping and/or selling retail then you'll have closing costs.

7.) Search for this on BP as well and you'll find a lot of tips and suggestions. The questions will vary depending on what you know about the seller and the property.

Again, these are not the "right" answers or the only answers, just my answers. Others will have more to contribute and other suggestions.

Good luck!

Eric