Using DM to get started in REI

[Kim Stofan]

I was wondering if someone could answer a question that I have about direct mail marketing.  I'm definitely a newbie trying to figure out how I can get started in the competitive market of Northern California.  Forgive me if I sound naive or uneducated...  I'm spending all my free time learning as much as I can.  It sounds like most investors who use DM state in their letters/postcards that they can pay in cash.  Is this required for finding deals with DM?  I have some cash, but not enough to pay for a property outright (esp. in my market).  Can you finance a deal that you find using DM?  

[David Cowan]

Kimberly Stofan

Whoever is going to buy your contract from you will pay cash for the property.

Or, if you are going to flip the property yourself, you can find the deal with hard money lenders(professional), or with private lenders(every day folks you may know who have money to invest)

There is also transactional funding which is basically a loan that you get at closing to purchase the house yourself, and then immediately sell it to your buyer. This is called a double close. Wholesalers often use this method when dealing with sellers will take issue with the fact that they are making money on the deal.