All Forum Posts by: Chris Bounds

I recently took the RE course and test. It is a serious course but not that bad at all.

Brian P. What is your next step to find good mailing addresses on returns?

@Sam McPeek  - thanks!  I definitely could.  I've kept notes on the deal like I do all of my deals, but I've never gotten around writing a post that much in detail about this one.  However, someone asked so I did write a quick updated post here.

@Jordan T. I could write an extensive blog about this deal, but I haven't gotten around to it yet.  I did go into it a little in this post.  

Before I purchased the property my final repair estimates were $114k.  I secured 100% financing including repairs.  I had enough credit lines to help out until it stabilized.

Repairs ultimately came out to around $160k - way above what I estimated, kind of.  The leased units needed repair too.  The $114k didn't include those units.  That is mostly what the additional repair costs were. 

I wasn't able to refinance the property so I sold to another investor (who I met through another BP member).  The issue with my refi was mostly since I purchased it with 100% financing.  Most banks I spoke with would still only lend 80% of the PP.  

I estimated the proforma value between 8-9% cap rate.  It's closer to 9-10% which makes it around $950k - $1m.  

Overall it was a good deal, but it would have been a better deal for me if I brought in a experienced MF partner.  

@Jason McKennaThanks!  If you haven't already, be sure to read Sharon Vornholt's articles on probate and direct mail.  They are golden!  I was actually reading a few of them this morning.

Dev Horn thanks for the comments. I've been factoring in the time factor. I just want to get a jump start on packing my lead funnel. I'll post follow ups on how the campaigns pan out.

Thanks Dev Horn . I have planned to use different postcards/letters for each batch. I keep thinking maybe it's better to keep with that and have the 3rd campaign mixed to get the best picture.

Hey everyone,

I mentioned in a post about my "business reboot" that I was starting a progressive direct mail marketing campaign.  I'm looking for advice, suggestions, or any other comments on improving my campaign strategy for a more aggressive direct mail marketing strategy for absentee owners.  I am using yellowletters.com. 

My first postcard batch went out Nov 3rd. (and surprisingly the first call I received is now under contract).  My second batch goes out next week.  The week after that I'm starting my first batch of typed letters. I plan on sending 7 batches for each campaign, going out every 4 weeks.  Each batch is about 800-900 leads.

The idea was to do a split test to see which works better, but I've read other posts where some people recommended mixing up the mail type (eg: letter, postcard, zip letter) verses staying with the same mail type (only letter, postcard, or zip letter).  Any comments on doing those strategies?  My plan was to stay with the same mail type for 7 batches and then afterward put them in a general mail piece that switches mail types on a less frequent basis.  Should I start my 3rd campaign testing the mixed mail type strategy?

Also, about what % of return mail is the norm?  I received about 3% from my first postcard batch.  Is it worth saving those leads for future reference to see if a newer mailing address is updated online.

In January I'd like to crank up the marketing efforts so any comments or suggestions is appreciated.  Thanks!

PP is the actual purchase price on the contract. Some local lenders will let repair expenses count towards equity. But a Fannie Mae loan can refi up to 75% ARV regardless of PP and your personal equity.

First, I'd personally never do a deal with family or friends being the motivated seller. I'd give advice and referrals, but wouldn't purchase and profit. Secondly, being new, out of state, and dealing with a PreF its a tall order. Helping them find an investor in that state for free (let the investor "pay" you in education/mentorship) is what I'd do if I were you.