Direct mail help, Oregon first timer

[Steve Dunford]

Hello everyone, I recently sent out a few direct mail letters to a specific neighborhood I would like to invest in. I’m searching for my first BRRRR home in Portland, Oregon area. I have received 2 very pleasant home owners telling me they are interested in selling possibly. I’m not sure the best way to approach the topic of wanting to buy there home for investment purposes and under market value. Some questions I have. 1. What point do I get a realtor involved to handle the process? 2. Is it really possible to purchase a home lower than market value? 3. Tips on what to say or do next after some one calls you back from your letter? 4. If the numbers don’t work for cash flow, can I wholesale it since I have found an off market seller? 5. I’m currently preaproved for $150k conventional loan, but the homes are in $200-$250k range. Any tips to not let an opportunity pass by and negotiate closer to $150k or am I dreaming? I am surprised that only 11 letters sent out resulted in 2 call backs of interested sellers in the 1st day. I feel like I may be close to something but don’t want to waist it. I’ve been studying up the last 9 months and glued to the BiggerPockets podcast. First time posting hear, thanks for any support or tips. Steve

[Mike Dorneman]

You’re in the right track, you identified your target homes and sent the letter, good work!
As for next steps, you’ve got many options. Direct mail campaigns are how I bought may last 3 houses. I never use a realtor, mainly because the whole idea of a direct campaign is to identify off market opportunities that you can purchase below retail value.
You can ask your title company for a genetic sales agreement. After they sign it and the deal is under contract, you have title pulled and insurance prepared (Roughly $700.00).
Once the clean title is returned (usually 2 weeks), you are ready to close the deal. It’s all handled at the title office and no additional cost to you...
Keep sending those letters, we just closed on a house last month from a letter I sent back in November! Peoples situations change all the time, you never know when they’ll go looking for your letter.