Rental Property Investor · Allentown, PA · Member since 2009 · 79 posts · 5 votes
I started with a simple yellow letter to absentee owners 3-5 bedroom and chose Equity % 40-100 on listsource. I had great responses except they were all wanting to sell retail. My guess would be they have no motivation yet and if they were to sell now they would retail because of all the equity they have. I chose this equity group hoping that if they were to sell then may consider some kind seller finance or subject to. I did this for a month now and I'm getting ready for the second time around to send them letters. I know this is suppose to be a 6 month run for a list of properties.
Was my equity choice okay? Do I just keep going with this list and possible somewhere a long the line someone will need to sell the property? Do I need to restructure my list of properties?
Investor · Saint Louis, MO · Member since 2014 · 113 posts · 43 votes
11y
It has been my experience that most people with that much equity don't need to do a subject to or lease purchase. I usually find that the people willing to do a subject to or LP are in newer homes, but that is not always the case.
Flipper/Rehabber · Easton, PA · Member since 2013 · 224 posts · 36 votes
11y
I think the equity amount is fine. How many letters did you send out? It is a numbers game! Were you also offering cash? and did you actually go to the homes or give them a ballpark amount on the phone? Be persistent.
Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
11y
The problem is not with your list (audience) which seems fine. The problem may be your MESSAGE. If you use letters, don't fall into the old "My wife and I love your house.... " trap. That message - which does not explain an investor's offer of fast cash for those with distressed properties - usually generates what you got: tire kickers looking for retail... or BETTER (because your wife LOVES the house, remember)?
You can use letters with handwritten envelopes to get good open rates, but make sure you are telling people what you do and who you do it for. With the right message, the right sellers (distressed property and/or situation) will self-select and contact you. IF you've hit them enough times.