All Forum Posts by: Casey Carroll

For low equity mailings, what % LTV do you recommend targeting for sub2? 90%? 80%?

I've done direct mail before, and it's costly to do it right (ie: sending to the same list 3-8 times). The response rates on post cards are 2-3% at best, and letters are 5-8%. But for yellow letters they usually run $1.10 to $1.25 each including stamp, and for a list of 500, that can get costly very very quickly after 3-8 times.

For absentee owner phone numbers, I have a software dev that uses a scraping tool on the tax assessor's website to scrape absentee phone numbers. The scraper only grabs about 60-70% of the actual numbers, but who cares? That's 1,000% better than what I had before (since no one gives phone numbers to absentee anymore).

Hi folks,

I am a successful lease option wholesaler, but I'm interested in branching out and expanding into buying and holding homes utilizing subject-to as my finance vehicle.

In doing so, I need help with effective marketing, that is also cost effective. I currently have a 3 part voice blast campaign to all expired listings within a 75 mile radius, but that isn't bringing enough deals. I am about to begin voiceblasting absentee owners very soon as well. And last but not least, I bought 100 bandit signs and will be placing them in vacant homeowner's yards in my zipcode very soon (a suggestion from Dwan Twyford)... and I will eventually put out 300-400 per month in vacant homeowner's yards if this first batch proves to be successful.

Can anyone else suggest any other forms of marketing specifically targeting no money down owner financing?

Rent to own and lease options are the same exact thing. In Texas, they have very screwy lease option laws; ie: after 6 months it must automatically convert into a form of owner financing. My suggestion is to structure it via a land sales contract. Talk to a real estate attorney in Texas as well... because Texas is unique when it comes to this kind of stuff.

I've used DHM and my experience was great, actually. They are firm on their programs, but also very fair. I used them for my very first flip when nobody else would fund my deal. They are extremely conservative on their ARV's and rehab estimates, but the produce and won't waste your time. I'd highly recommend them. Through their Diamond Millions program, Ryan will even partner with you and cover all up front costs, and he'll do it for a 50/50 JV partnership.

I've heard of a portfolio based type of loan that will lend like this, but it's private money... and not a conventional mortgage. Have you thought bringing someone else as the credit donor? You can do so it you create an LLC where both of you are officers and have signing authority. They check the credit and income of your donor and not you, and the LLC technically owns the property. Then you give that person 1-2 points for helping you out and keep that LLC open as long as you own the home.

Tom, I myself am also a new investor and am currently in the middle of 2 property flips (I was doing three simultaneously but just sold my first one last week). I'm also spending time rounding up new capital partners and investors to flip 8 homes simultaneously, with the plans of flipping another 10 more right after these 8 are done. These 8 should be inked within the next 30 days

I'm a huge fan of creating goals with timelines, and making new goals once you've accomplished the other ones. I applaud the goal of owning a lambo, but it should be the product of achieving another goal, not the entire reason altogether. I personally set a goal of earning over $400k this year, flipping 15 homes, and wholesaling another 20.

Every dollar you spend is a dollar you could have used as leverage. Wealth isn't created by spending, it's by saving and being smart.

If I were you, I'd start writing goals which stem from "needs" not "wants." I needed to start my own business because I hate a 9 to 5, wanted to earn more money than the idiot corporate America managers were making, and to have a little more freedom than the common man. I had a burning need to achieve these goals, which is why I launched my LLC and started doing this.

Don't start your goals with a "want." When you write your 1 year, 5 year, and 10 year goals, don't fill those goals with possessions. This is just my personal opinion, but objects as a form of motivation are weak... you'll put a lot more fire in your belly if you write your goals focused around needs.

Good luck! While my eventual goals are to also own a lambo, I'm going about it differently. I'll be happy to own one when I've got a million in the bank liquid, and several apartment complexes under my ownership. Until then, it's all hard work for me!

Why not use realeflow or freedomsoft? They can automate most of that for you.