Ive began my marketing campaign and some results to show for it!
I used Listsource to create a list of 212 Absentee Owners with equity.
I went driving for dollars for about a month and compiled an extra 20 contacts to mail.
Then I used Google to compile a good letter I wanted to use as a mailer
I used plain white printing paper with a red font (looks like handwriting)
Bought stamps and labels at a discount from Ebay (and used Ebates.com for an extra 1% cash back)
I also used a local company to print 200 one color one sided bandit signs for $185.03 total (free pickup, no shipping costs)
And got H-stakes from Home Depot for roughly $0.30 each
1st deal
I got a call from someone way out in Lakeland, FL. This motivated seller wanted to sell their 1940's wood frame house that needed EVERYTHING! It was in very terrible shape and in the hood nonetheless. I was able to get a contract signed @ $12,500 and a cash buyer less than one week later @ $14,000. With the help of a local realtor, this house had an ARV of $50-59k. From what I saw, it needed roughly $15-20k in rehab work needed to make it rent-ready.
This deal was hard to close since neither the seller nor buyer had email and could not close electronically. So, I had to hold their hands and walk them through step-by-step while trying my best to not have to make the hour drive from Orlando to Lakeland everytime they needed something.
$1500 wholesale profit!
2nd deal
This one is currently at the beginning stages. The call came in yesterday from an older Spanish speaking lady from Kissimmee, FL that received one of my mailers (thank God I'm bilingual!). She has 2 homes for sale in the area. One is listed with a realtor at retail price (I passed and told her I would be interested when the listing expires) and the second house was her primary residence. She became ill not so long ago and moved in with her son. She has not been able to pay her mortgage (not sure for how long, but will find out today) but she did quote an unpaid balance of $98k. I have told her that I will take over the entire mortgage with late fees and everything included and she can walk away from the house clean and she agreed. A local realtor send me 3 comps in the same subdivision, sq feet, and beds/baths that range from $150-159k. Her and I have scheduled a conference call at 11am today with the bank so that we can get a full payoff amount of the mortgage. If the numbers work well, I will be visiting her at the house tomorrow afternoon with a contract ready to go.
My plan is to use hard money and actually flip this house myself. The reason why is that most investors want to be at or under 70% ARV after purchase and rehab. But unlike other investors, I would rather make $10k minimum than to try and wholesale a deal that may not work for other investors. I have not seen the work that needs to be done, but judging from the photos she sent me, it may only need paint and some flowers out front. Other than that, I've projected a rough profit estimate of $10-25k (being conservative). These numbers will narrow out after I find out the true unpaid balance and visit the property.
So there it is!
