Sending Out Postcards/Letters Questions

[Laurie Falk]

I have a few questions about sending out postcards and/or letters....

A little background: I am in search of my first investment property and leaning toward a single family flip. Based on what I have read and heard from BiggerPockets, I'm better off finding something not on the MLS. However, I'm hesitant to send out postcards because I'm not in the position to buy for cash. I have a specific area in the Richmond, VA area in mind and know of at least one house that's been empty for a while (I think the owners are in their 90s) and potentially others.

1. Should I just send "personalized" letters to each address within the area I have in mind? 

2. Would I be better off sending a generic postcard to a broader list of homeowners?

3. Does it make any difference that I can't offer a cash-quick close? Should I try to get a pre-approval on a mortgage before sending anything out? Am I pretty much stuck to the MLS until I have cash?

4. As this is my first flip, I don't have a business name or anything like that. Does that matter for either of these?

Thanks!!

[Lucas Machado]

Laurie,

You are absolutely not stuck on the MLS until you personally have cash.

I can't speak for your area, but at least in the hot market of South Florida you are not going to (easily) get a strong flip property using a conventional mortgage.  Two reasons: you have to offer value to the seller, and typically that is you have fast cash for easy closing; you are buying the house as-is, which usually means in poor shape and in many cases won't qualify for conventional.

I would begin lining up hard-money lenders and deal partners. Meet people are your local REI and I'm sure soon enough you will find hard-money lenders and deal partners/mentor. Hard-money lenders may ask you to put 20% or more down, so perhaps that is not an option. With the mentor, you bring them the contract and they will handle it, for 50%+ of the profit. You are paying for your education and their skills/network. Of course, they will expect that you brought them the deal (cause that's really all a newbie is bringing to the table). Experienced real estate pros are more than willing to work with a hungry young investor. I've mentored multiple newer investors that had no experience on deals that I was experienced on.