Finding owner financed multi family through direct mail?

Question

i finally have enough cash for a downpayment on a property. i cant take out a loan from a bank though because i dont have 2 years of tax returns... finding an owner financed property i figured is my next best option...

Is direct mail still a real good way to find good deals? What is your opinion on managing a multi family out of state?

Is direct mail still a real good way to find good deals?  What is your opinion on managing a multi family out of state?

Ray Lai · Answer

Direct mail is a great way to find good deals with a few caveats:

1) The target market size is big enough2) The campaign is sustained - responses typically come after many mailings due to people throwing out the first few3) The message is correct for that market type - beginners have a tendency to put too much information on their postcards/yellow-letters4) How competitive is the market? If you are in a competitive market and you simply by a list and mail to that list, someone else is likely doing it. You need to work hard in our industry, doing the same thing as everyone else doesn't really cut it.

There are more points but you get the drift, these are some of the big ones.

For your other question, managing a multi family out of state is a high risk activity. You must have trustworthy boots on the ground. It's a tough enough job with it being in your city. Definitely do not recommend that if you are just starting out. On one hand you don't want analysis paralysis for your first deal, on the other hand you do need risk reduction activities because nothing sucks more than losing a lot of money on your first deal. There is a great recent success story of a guy that waited for a homerun while passing up on some other viable deals.

If you need help with direct mail, feel free to add me and message me.