Chicago investor in need of tips

[Julio Aguirre]

Hey BP community. so I tried the direct mailing to sellers and realized that it's a lot of time and work since I did all the work in house, and only got back one phone call from that the list that was only of 400.

since last time I've posted I've managed to save more money. I'm at 45k saved now, my moms flip is in escrow now and hopefully it will close soon. we have been putting offers on on market deals cash and raised the EDM and waived inspections except for foundation and major water damage and still get out bid. 

so taking everything into consideration I feel like I should spend more money on marketing and start to cold call while also sending more direct mailing and texting and getting a bigger list to do so. I don't know if cold calling and sending text messages in Illinois is legal so if somebody is already doing it let me know. and I also wouldn't mind interning or work for free for a wholesaler or real estate agent so if anybody needs help I am more then happy to help and so I can grow more skills and learn more how everything works. 

any feed back or ideas on if I should do something different I will appreciate it. any wholesalers also can add me to their buyers list send me a message so I could give you my email. looking in the south sub of Chicago for a flip under 150k thanks guys!

[Andrew Holmes]

@Julio Aguirre - As far as your question about mailing to a list. It will all depend on who you are mailing. Expired,canceled, Probabte, People with equity that are pre foreclosure, Low or no equity list. Vacant properties and so on. We have 2 lists that we mail to and stick to that. Minimum of 7 contacts on those lists. 

$ 700 intital  mailing

Then $ 300 for skip tracing and phone text. 

Then sort out people who say don't call or text. 

Keep following up with the rest with 2 mail pieces and text again.

THen again clean and sort and 3 mail pieces and text and clear and sort again. 

You have to first narrow down the area, Then which list and then your exact strategy. 

Bandit signs, driving for dollars, mailing, cold calling or marketing for leads on internet or other media they all work and depends who you talk to you will get confusing answers. 

So the way I set this up is. 

Initial investment of $ 5,000 (That was the total budget allocated for mailing and text campaign)

1. 1st Mailing $ 700

2. Text Followup $ 300

3. 2nd Mailing $ 1000

4. 3rd Mailing $ 1350

5. Text $320

So on...

1 deal closed Gross profit 25K. Net 21K after expenses (This was Wholesaled)

7K allocated back to Marketing (14K put aside as profit)

2nd Deal Kept as rental 

3rd deal in process will keep as a rental 

Chicago is too big an area. Get it narrow down to your areas and then start marketing. Make sure you stick to what strategy you pick. The more you read and listen online. Every new thing you hear about will seem like to magic answer. The money is in consistency and repetitious boredom activities. 

Only do flips that are in your area and you can easily manage. A lot of people are overpaying for properties so wholesale the stuff out that you don't want or outside your market. Best yet you can keep some as long term rentals that are really good and fit your criteria.