All Forum Posts by: Michael G.

Ive heard somewhere that to be a great real estate investor you have to be a great marketer. My marketing method is primarily a 2 letter direct mail drip campaign to landlords. The response rate is ok. I want to pick the brains of the successful wholesalers on this forum and I know there are many. How much of your wholesaling business is marketing for a) seller leads and buyer leads? How big is your your buyers list? What percentage of marketing is your wholesaling business - 40% 60% 80%. Do you prefer Direct Mail Marketing or Internet Marketing or other? Let me know your thoughts. Happy Wholesaling!

Cold calling is OK if you have a lot of time and patience and have your objection handlers ready. The rejection rate is probably ver and your rejection mindset the samey high and probably a good way to burn out on RE investing quickly. I wouldn't suggest it for a newbie. I think you hit the nail on the head when you talked about "psychological pain". Why dont you find out from your local county courthouse the names of landlords who have filed evictions in your farm area in the last 30 days? Those are the sellers you want to talk to or better yet those are the sellers who want to talk to you.. They are usually investors who paid to much for their property to begin with or are having problems with their tenants slow paying or no paying, have property management issues...basically they are burnt out. Start your burnt out marketing campaign to these landlords and watch your phone start ringing. Most would agree that having a seller call you is better than you calling a seller. Once they call you you have to figure out if its a deal or a dud. PM me and I'll send you some letters that you can send out.

I've had those come across my desk before. The thing to keep in mind is that every deal is not a deal if you know what I'm saying. Some of them will be duds. If the deal is thin sometimes its best just to turn it down. If its not attractive to you at first glance, it probably wont be attractive to any other investors. Like Andrew mentioned it may work for a buy and hold investor but again there has to be cash flow there.

I think Kyand has a good point. Let the endbuyer pay the non-refundable earnest money deposit. Thats wholesaling 101...use none of your own money. That may be hard for you to do if, as already mentioned your buyers list is not strong. If you are a wholesaler which it sounds like you are, or want to be, you should ask the wholesaler/investor who has the properties under contract if they want to partner on the deal. Agree on a mutally acceptable split, then put it into a JV agreement. To be clear you don't need a license to wholesale but you do to sell houses. Curt may have some good advice if your goal is to retail houses but if you want to wholesale, getting a RE license is really not going to benefit you much in my humble opinion. If you need more info on the mechanics of a wholesale deal... PM me and we can talk offline.

Hi Chris - I would use a JV (joint venture) agreement that details how the fee will be shared with the other wholesaler percentage wise. That would ensure that its on paper and that there is no funny business when the deal is closed. PM me and I will send you one that I use.

Now these are good responses! That's what I needed! I usually get phone calls from sellers after I send them marketing peices. 9 times out of 10 the questions are the same 3 questions I mentioned along with some other questions that you guys have covered.

Thanks Mike for the dissertation on subject to/seller financing but this is a wholesale deal.This seller called me from a letter she received from me targeting burnt out landlords. So how do YOU cover attorney approval in YOUR initial presentation? Have these questions ever been asked of you? If not, maybe you should say that instead. Do you really say let me have my attorney call your attorney? Then what? Do you call your attorney and tell them to contact the sellers attorney? Does your attorney then explain that you are going to buy the house and assign the contract and simultaneously close in the future? If yes then why not just say that?

So I have a seller who wants to know the answers to all these questions?

1) If you are not going to buy the house with your own cash why am I signing a contract with you?

2) I need to let my attorney review this contract right?

3) How much money are you going to sell it for once you find the buyer?

As much as I wanted to say "dont't worry about it, I got you covered. I think her questions were valid?

Has anyone run into the inqusitive seller? How do you handle?

My letter is similar to Andrew's. Hand written address on envelope. Personally signed each letter. I just received a verbal acceptance from a seller today from one of those letters who had 2 houses to sell. I'll let you know when we flip those contracts.

I'll let you know in a few weeks if this letter campaign translates into deals