30 homes, 150 letters, 5 months, 1 offer...what now?

[Nate Hawkins]

Back in May I did driving for dollars, I found 30 homes I liked so I went home and hand wrote letters to the owners addresses I found on the county tax website. I sent out 5 rounds to all 30 houses on a weekly frequency. First call yelled at me and said "stop sending me F()$& letters" -- I sent him one more letter this was the offer for his property. The second call wanted to sell and wanted me to come over and give them an offer. I did this and they wanted way more than the home was worth. Third call was an investor who gave me props on being brave enough to send consistently "hand written" letters. But he wasn't interested in selling. Fourth call wanted me to rehab his property as his contractor. Fifth call just wanted someone to talk to and I made a good friend. He wanted to sell but had no where to go and was really sick. Then no calls or responses for several months. Everyone left on the list got an offer with or without a response. A few days ago I got a phone call in regards to house I put an offer on. They asked if my offer was still good. I told them I'd call back after I look at my notes. Come to find out the guy who was sick died and his brother wanted to sell the house. I checked my numbers and I think they look good for a wholesale. C class neighborhood 1,040 sqft 2 bed 1 bath Offer: 15,500 Comps: 70,000-127,000 Renovations: 21,000 Rents: 550-675 I would keep this as a rental since this town is extremely good for rents because of the great schools but I'd like to turn some profit for another house in a little better neighborhood. What would be a fair wholesale price? Any thoughts? Comments?

[Eric F.]

Did the seller say they wanted $15,500? I am confused where that number came from. What did the seller say they wanted to get for the house? 

That comp range is ridiculous. You have to be more accurate than that. Your higher comp is over 50% of your lower one. Renting at a max of $650 a month, if you can wholesale it for a 15k profit I'd wholesale it and move on. It takes a lot of time at $200 a month to get that. I get the impression you are a newer investor (I may be wrong). That 15k can go a long way to your marketing and getting established. Right now you are hand writing 30 letters a pop, using that 15k you can start sending out 1,000.  

Finally, I want to commend you on taking action. Driving around looking for ugly houses and handwriting letters is not fun, but you did the work and hopefully are going to reap the rewards. 5 calls off of only 30 houses mailed 5 times is pretty darn good by the way. 

PS If the second, fourth, and fifth call have not sold follow up with them now. Call them today. And I would call the third one to see if he is interested in being a buyer.