What would you do with $1,000?

[Ben Roberts]

Background...

I'm in Memphis Tennessee and I've done a fair amount of research, enough to know that I need to jump in already. I have a little knowledge of my market and a little knowledge of real estate. I have a degree in Finance and a background in Data Analysis, Marketing, and Sales, and I currently work for a REIT.

Plan...

I think my best move is get started wholesaling.  I love the marketing, negotiating, and analysis (of both deals and marketing campaigns). I have my personal finances in order ( emergency fund, checking, savings, monthly budget ), and I only have $1000 to get started.  I think my first move is to buy some business cards, setup a website, get a list, and send out postcards (since they appear to be cheaper than yellow letters). I'd like to put half my earnings back in to generating more leads, and half in savings to pay cash for my first rental property.

Expected outcome?

The way I figure, I'll learn a lot about my market, as I go.  I'll sell properties to other investors, figuring out who is really killing it and what they're doing.  Watch and learn from them while providing them value.   

Does this make sense to anybody? What would you do with $1,000?

[Julie Clark]

@Ben Roberts  I love your question. It's a good one.  I am a full-time wholesaler in Seattle, WA.  The #1 key to success is volume of leads and your ability to convert them to deals, or none of the other stuff even matters.  Spend some of your up front education time learning how to effectively speak to sellers rather than focus all on the real estate part. Also focus on just getting a deal (lead) and the rest will fall into place.  If you get a good deal, everyone will be here to help & guide you on the next steps.  If you get nervous when you speak to a seller just do the best you can and say you will review with "your investment team" and get back in touch within 24 hours with an offer.  Then throw out your questions to the BP universe and to your local investment club network and you will get answers/help on how to proceed.  Here's what I would do with $1000.

• Create a Property Radar account so you can pull lists for direct mail ($50)
• Buy some Post It notes / drive for dollars and door knock or leave a post it note, also track those addresses to send direct mail  ($50)
• Create a Podio account to manage your leads and do follow up - Free basic acct?
• Get a phone number to use off Vumber or elsewhere / don't use personal # (cheap)
• Buy some bandit signs ($100) - time block and put them out
• Buy some direct mail supplies: paper, envelopes, stamps $150
• Spend the rest on direct mail postcards (go for volume)  Check out yellowletters.com or other services to do it for you.  Get it done efficiently and out the door.
• Spend the monthly cash flow you can afford on more direct mail that you pay someone else to send out.  Don't over think this, just do it consistently
• Spend your free time door knocking, putting out bandits and sending out direct mail letters your write and mail out yourself
• Pick 2 or 3 local investment club meet ups and go to them consistently. 
• Find a successful lease option investor in your local market and network with them so they can teach you that investment strategy as well.

Other Tips:

• Be yourself.  If you are a nice, genuine person, just speak that way to others and be patient with Sellers.  Don't just scratch the surface in finding out what the Seller's wants & needs & hold backs are.  Go deeper if you can as this will be your road map on how to make an offer they will accept and how to compete against other offers.
• Hand write and mail out direct mail letters to the driving for dollars or balance of names on your list that you pulled 
• Learn creative financing strategies from guru's like Joe McCall so you can identify different deal structures and have a solution for every lead type that contacts you.
• Don't set your expectations low on your wholesaling fees to start.  Find out what the top wholesalers in your market are getting and set your expectations at no less.

Happy Holidays and best wishes for a successful 2016!