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Updated almost 12 years ago on . Most recent reply
Here we go again
Well BP here we go again.
Today I decided enough was enough and started taking action. I got on the phone and started making calls and sending emails trying to get started building my buyers list. Around this time a year ago I made the same decision, but I fizzled out pretty quickly. I'm determined to not let that happen again. The purpose of starting this thread is to hold myself accountable and to get support from the members here at Bigger Pockets because I know how much you guys love to help.
I've done hours and hours of research and listened to just about every podcast imaginable (Sean Terry, Todd Toback, Mark Whitten, etc. and the list goes on) the only thing left is to take action and sustain it this time. Unfortunately, at the moment I have no money to put into yellow letters and other marketing strategies so I'm going to have to get this going the hard way.
I know a lot of you are already successful so I was just wondering if you had any advice for me. I have nothing but time on my hands and I'm anxious to make my first deal!!
Most Popular Reply
As I have delt with this many times my advice is this. You have to keep your head in the game and stay FOCUSed. Follow One Course Until Successful. The way I stay in the game is to constantly surround myself with other investors and constantly listen to real estate and motivational podcast as well as stay on Biggerpockets and read books.
When you start doing deals consistently you won't have to worry about "fizzeling out". I will also say from experience that money will only motivate you so far.
One word - persistence! It took me 7 hard, long months to find my first deal in July 2003. In July and August I bought 6 total. Since that time I have bought 1,300+ homes. I started with a negative $80,000 net worth...
As I have delt with this many times my advice is this. You have to keep your head in the game and stay FOCUSed. Follow One Course Until Successful. The way I stay in the game is to constantly surround myself with other investors and constantly listen to real estate and motivational podcast as well as stay on Biggerpockets and read books.
When you start doing deals consistently you won't have to worry about "fizzeling out". I will also say from experience that money will only motivate you so far.
Thank you for the advice guys! Persistence and focus are both going to be key to my success. If you were able to go from 80k in the hole to spending 1M a year on marketing alone (holy crap!) I definitely have no excuse.
1. Find out who's REALLY buying rehab houses. You only need 1-3 seasoned buyers. A buyers list of 10,000 wholesalers advertising 'we buy houses' is pretty much worthless to your wholesale career. (tip: town clerks office).
2. Find motivated sellers. Advertise 'We Buy Houses' gorilla marketing style! (tip: craigs list, mls, bandit signs).. Like you said direct mail campaigns are super expensive.. You dont want to spend $5k in letters for a $5k wholesale deal.
#3 Marketing Your Property Contributor
- Flipper/Rehabber
- Arlington, TX
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#3 Marketing Your Property Contributor
- Flipper/Rehabber
- Arlington, TX
I agree with Phil Z.. The market seems flooded with people that just want to flip paper. If a "wholesaler" flips to another "wholesaler", isn't the profit eaten up before anyone is adding any value to the house? While there is more risk in rehabbing, that is where the most value is created, in taking a run down place and making it into a nice place that can command a retail price. (Now even as a rehabber, there may be some deals that you choose to wholesale for a variety of reasons...). Value creation is what translates to profit creation. Look to find ways to add the most value, and be a problem solve for people on both sides of the equation.
On marketing, Craigslist is good, but not really very productive. And even tho most people here in BP probably started with bandit signs, be prepared to hear from many that those signs are the cause of most of America's problems. But Phil is right - go guerrilla; you can make flyers (2-per page) for just a couple of cents each down at FedEx Office and take them and put them on cars in the parking lots at the 4th of July celebration in your area!