FSBO'S?

Question

I read on a post that 99% of FSBO's are a waste of time to find a wholesale deal. What should I be concentrating on.

Jeff Warner · Answer

Ok, enough rambling. Here is a sample of the letter that is working for me:

Dear Property Owner,

We are Real Estate Investors in the -(insert your area)- area and we buy houses for CASH! We noticed your property located at 123 XYZ St. and wondered if you have considered selling it?

We are not some giant corporation with an 800# that forwards to some other state. We are residents of the (insert your area) and we're looking to buy a few homes in the (insert your area). We've seen the home and we know it needs work, which is just fine. In fact, fixer uppers are what we're after.

Like I said we can pay CASH so there is no time wasted waiting for bank approval. We are genuinely interested and are eager to speak with you. Please call TODAY! We look forward to talking to you.

Sincerely,

Your Name
Your #

Keep in mind that I use my cell phone #, not an 800# and I answer my phone: "This is Jeff", not "Thank you for calling ABC Corp." The reason I point this out is because the content in the letter doesn't support a BIG company approach. In my opinion, the key to business is to be consistent with your message and how you present yourself. You need to find what works for you, for some people having a GIANT image works great, for others being the small guy is better. I've done both in business and I honestly don't have a preference. For Wholesaling, it just seemed like being the small guy would be better.

BTW, that letter is word for word and not modified in anyway.

Jeff

Jeff Warner · Answer

With that info I'll figure out comps and pick the absolute best deal and send them a letter. I'll send letters to the other ones too, but I send a different letter. Everyone goes about things differently and you will to once you find what works for you. In the last 2 weeks I sent out 4 letters, not 400 but 4. Of those 4, i've already received phone calls from 2 owners. Of those 2 I will get one deal which I'm VERY happy with.

Another option is to buy a list (list source dot com or other sites have them). With that list you can send them a letter or postcard and try to find a deal. The key is to hone in to a list of sellers that NEED to sell. Out of state owners with boarded up properties NEED to sell in most cases while out of state owners with average homes that are vacant may not NEED to sell, but may call anyway to see if your deal is worth their time. By sticking with distressed properties I find that the level of motivation is much more real and the sellers NEED to sell asap.

Sorry for the long answer to your short questions, hope that helps.

Jeff

David Wolvington · Answer

Thanks guys I can use all the help I can get right now to make it work
thanks 
david

Jeff Warner · Answer

The numbers I posted are real (4 letters sent, 2 replies) but not likely to continue. I feel that my success rate with these letters is not a matter of luck but a matter of how I came about the homes in which the letters we're sent. They we're all sent to homes that have been vacant for a long time (one of them has been vacant and boarded up for at least 3 years, another one more then 5) and 2 of them had owners out of state (my favorite).

I think my letter, if used properly could give other people success as well but it is by no means the only letter you should be sending. Even with the success I've had with it, I still continue to try other methods to find something that works better.

Jeff

Scott M. · Answer

1-2% is a pretty standard response rate for any type of mass mailing and those rules hold pretty firm if you call or go door knocking - although I have seen a higher rate of return on the door knocking - assuming you present yourself well!.

3-4% is pretty rare and not really sustainable.

So assuming a 1% return isn't the waste of time that you might think it is - what can be a waste of time is:

- dealing with homeonwers who are not really motiveated to sell
- homeowners who are talking to 100 of yoru competitors
- homeowerns who lie to you (tell you there isn't a second but you find one - what else are they lying about?)
- homeowners that are getting divorced and they care more about hurting each other then working out a deal 
- tracking down an absent homeowner (meaning spending hours and hours and hours on this)
- lonely people who just want to talk

And on and on and on - lots of time wasters in this biz but 1% isn't.

Use the letters that Jeff posted - make your own - use a combination - and test test test - see what pulls better for your area.  Send out 4 different letters and see which one gets the best response rate.

Post cards are a double edged sword - I have had many complain to me about their privacy - but they are the cheapest - so it is give and take.

Jeff Warner · Answer

David, I don't mind as long as Josh doesn't. Go right ahead and give it a try.
          
          I agree with Scott, there are a lot of time wasters. I have never used post cards but I have considered them because of the cost. 
          
          I gotta say I don't think any one letter is going to always work and I agree that you need to test multiple letters and find what works best for you. 
          
          Anyone else care to share a sample letter that is working?
          
          Jeff

Joshua Dorkin · Answer

David - Just take the letters . . . that's why I asked him to share them. :wink:

Rudy Centeno · Answer

Thank you all for your replies.

David Wolvington · Answer

Jeff
would you mind if I asked you to e-mail me that letter so I do not break the copywrite rules of B/P? 
My e-mail is below
Thanks 
David Wolvington

Jeff Warner · Answer

I agree that some people will take offense to it. I think the reason it is working for me is because these are homes that I have seen and verified that they are in really bad shape. I don't think this letter would work well if sent to a list of homes that you have not seen. The homes that I'm marketing to right now are eyesores to say the least.

That said, some people may still take offense to it so choose your words carefully. I have a deal in the works with a lady that is out of state and has not seen the home in a few years. She knew it was bad, just not sure how bad. They had tenants that did not pay rent for 9 months and thrashed the place. Fortunately she did not take offense to it and just wants to sell.

Jeff

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