$1,209.54 to Invest - San Antonio, TX

[Matthew Allen]

I've spent the last few weeks reading & listening to stories & wisdom to get my start in real estate investing. My simple plan is wholesale 3 houses, flip 1, then see where that leads. I have peeled aside $1,209.54 to start. Any suggestions on the best use of funds? I've initiated operation driving for dollars (wrapping up a project 4 hours away, so limited time currently) and I'm open to mailing to lists, but don't want to just light money on fire and call myself an investor. Any tips on the most effective place to start would be helpful.

[Eric Moore]

@Matthew AllenI suggest you peel away around $3,000 to begin.  This will be for marketing costs.  For me, postcards are the most effective.  Although you receive less calls then yellow letters, the calls you do receive are motivated.  I'm an investor in San Antonio and I just put a house under contract in the Lavaca Historic District that I am going to rehab. Assuming you've had the necessary education and are ready to go, here's my suggestions.

1. Identify "hot" areas in the SA market. If you know a realtor ask them to research in MLS where there have been a lot of cash sales. Or you could also find that information via www.listsource.com (just a little more difficult).  You can match that info up against the Trulia area heat map to see the hot areas.

2.  Once you identify where the hot action is, I recommend you find a reputable marketing company.  I go through Michael Quarles www.yellowletters.com.  Give them a call and they can advise you on what marketing material Michael is currently using in his business. 

2(a).  You could print your own postcards instead of buying them.  You can get Rick's system; http://flipwithrick.com.

3.  Then get your list of sellers on

4.  Once you send out mail be prepared to answer phone calls live or at the very least return phone asap because competition is high.

Hope this helps.  Good luck!!