Direct Mail Critera (Listsource) - Thoughts?

Question

Hi BP,

I was hoping you all would be able to help me refine my criteria on Listsource. I'm just about ready to buy the list, but I would like to hear what you all think I could change (if needed) with my criteria.

I'm looking to buy a 2 or 3 family in the MA area (FHA). Here is what I set my criteria at:

Mortgage: All mortgages

Absentee and Owner Occupied.

Property: Equity anywhere from 31% to 90%.

Property Type: Duplex/Triplex

Demographics: N/A.

Foreclosure: N/A.

Address Completeness: Mailing and Property Address complete.

Corporate owned: Exclude.

I am planning on sending out 600 letters to 3 towns for a total on 200 letters per town. Can you all please let me know what you think of this critera or if I should be more specific, etc.? I've got about 4,152 leads with this set-up.

Thanks,

Ken Yu · Answer

I wouldn't choose either, honestly. DM campaigns care more about quantity over quality, so I  think that it's best to pick a zip code based on what you like about the area, and then fire off on every house on your list.

If you had to choose, current home value will help you estimate your purchase price.  But you're still going to have to do a research on the property's comps whenever you present an offer to the seller, so all you're doing is sending mailers to homes that are in your ballpark.

Hope this helps! PM me if you wanna discuss any more details.

Ken Yu · Answer

An assessed value of a home can greatly differ from the market value of a home. The assessed value is simply the value that taxes are calculated upon, whereas the market value can be higher in the case of a new renovation/rehab, or lower if the house is run down or abandoned. I've had people add in minimal repairs to their home and try to upsell it by enormous margins, and I've also looked at homes where the assessed value of the home was less than half of the buyer's initial offer.

Steve Bracero · Answer

@Craig Moore

Go to the property tab- then length of residence, I would select everything over 4 years

The assessed value if much different then the market value of the home. I did not include houses assessed over 500k in my search but since you are looking closer to Boston, it might be helpful, worst case you talk to a seller who wants to much for their home and find an experienced wholesaler to help you with the deal

Joe DeFarias · Answer

Craig,

What website / source are you using to get these leads? Your cities seem to be spread around, what made you target these four cities?

Everett has worked well for me, I have a three family on the Everett / Malden line.

Ken Yu · Answer

Yeah, it would be more wise to target homes that are in your price range. All I've been saying is that a home's assessed value might be different from it's market value. At the end of the day, it's up to you to market to a house/neighborhood/area that you think you'll find the best deals!

Craig Moore · Answer

Thanks, Ken.

I'm just a bit confused. If you're only pre-qualified for let's say $500k, why would you be marketing to homes valued at or above $700k? Isn't it wise to be more specific of your price range? Regardless of comps, isn't a house's worth -- a house's worth?

Craig Moore · Answer

So, what data would you go by? Current Home Value or Total Assessed Value? Those are the only two data points I got. There is also last market sale price.

Craig Moore · Answer

How can someone dispute assessed value though? I would think no matter the market your house is what it's worth. I kind of get what you are getting at though.

Craig Moore · Answer

I used ListSource. I currently live in Mattapan, so I'm not far from Randolph and have some familiarity with it. I went to school in Newton, so I also have some familiarity with Waltham. Everett and Revere have always interested me. All 4 of them seem to offer reasonable rents and/or opportunity. What has your experience been investing in Everett? If you'd like to converse more privately I'll send you a colleague request.

Thanks,

Craig Moore · Answer

Steve,

Thanks for your feedback.

I included both absentee and owner occupied.

I'm looking in Randolph, Revere, Waltham and Everett currently.

I did not find an ownership option. Is it under a different name?

Did you base your assessment on how much you're pre-approved for?

Direct Mail Critera (Listsource) - Thoughts?

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