All Forum Posts by: Dakoda Spencer

Hey BP family. I'm looking to start my direct mail marketing soon. I would like some pointers in getting started. I've read through some of the guides, it's just hard to think that it's that simple. 

I'm in the Keyser WV area, and will start sending mail out here shortly. I know Keyser won't offer many leads, so I'm aware that I'm going to have to expand my campaign to generate more leads. I have some key areas that I want to target pretty heavily. I'd like to stick on this side of the Potomac (in WV) for now, but I'll eventually move over the Hagerstown, Cumberland, Frostburg areas. I may even reach out further if I am able to grow my business so it can handle it.

Here is what I'm looking for. 

1. From people's personal experience, would they recommend using post cards or yellow letters? I don't really like the idea of post cards. I personally look at them more like they are junk mail and hardly ever pay attention to them. I know this will vary, I just want some opinions.

2. Can some people show me some examples of what they put on their mailings? I understand that it will vary greatly depending on who you are targeting, and a lot of other factors. I'd just like to get an idea of what works. 

3. I specifically want to target houses in certain neighborhoods that seem abandoned. I don't have a lot of money, so I want to utilize driving for dollars. Can someone give me some specfic advice (spell it out for me) what I should say to these people? I'm okay with handwriting out letters to these people to increase my response rate.

4. General info. I'm new to this. I just need some guidance to get started! Any and all advice is appreciated! Please let me know what has or hasn't worked for you! 

Thanks!

-Dakoda

Hey @Alejandro Robaina, it's hard to tell with just the numbers you gave. Do you have an idea of what the rehab would be, or how long it would take to flip?You said the "houses" need a lot of work, is it a SFR? Have you talked to an agent and asked what the house will sell for? Do you know what the average DOM (Days on Market) are for the area and type of house?

I hope this helps you in what you need to find.

-Dakoda

Hey @Brett Merrill, I'm new to this but I'll try giving my two cents. 

I don't see the the refinancing strategy working on this property, and it's not the bank that I am concerned with. According to your description, it's in a "turn key" condition. Do you think you would be able to get enough equity in it to make the deal work? I don't know the numbers, but it looks like you are buying it at a great discount so it might work out. 

Try looking into transactional funding. That method seems like it would work here. Is the seller willing to do seller financing with a good down payment? If you are sure that you can raise the value of the property significantly, tell the home owner you can buy it with a balloon in 3 years or so. 

No matter what, you need to make sure that the property can cash flow. I don't really see how such a discounted property can still not cash flow. You probably have, but make sure you are getting the tax info from your county website.

Since you have already done your homework, I'm sure you know about house hacking and have already ruled that option out due to circumstances or preferences since you didn't mention it as an option above.

I must say, this is my opinion on the matter. I haven't done any deals myself, I've just done a lot of learning and studying. 

Good luck! -Dakoda

@Theresa Nicoletto, your words of advice really inspire me! Reading your post alone shifted my perspective of my job. I've been trying to come up with my freedom number, but it's been really difficult getting it because things have been shifting around lately. I live off of basically nothing, so I'm trying to calculate what my freedom number will be after I am married to my fiancee. 

I have both the "Four Hour Work Week" and "E Myth" on my list of books to read, but it makes sense to go ahead and move those closer to the top to read first.

@Mike Hanneman, that is a great question. I have worked with my brother and former employers working on and flipping houses. My mother's side of the family has a trailer park that I have assisted in managing for the past two years or so. My mom, and the others who own the park, don't have a clue what they are doing, so I give my advice when they ask. I have enjoyed myself every time I've touched RE. You're still right, though. I may not like it after I get full-time into it. So, I really appreciate your advice and wisdom.

@David Greene, I love your view on my situation. Yes, I want to leave my job. But, I agree with you that it isn't the best idea to "plunge" without having a cushion. I love your comment about business coming from my coworkers here at IBM. I've never thought about that, and that is the very reason I posted; for smarter people to show me things that I can't see in my position, here on the inside of my life. I've been talking with my manager about what I need to do to further my career. I think I'm on the right path for a better position. There aren't really any other employers in the area that can even compete with this company.

@Chris Low, I don't have the option for a 401k in my position. There are several different employee types here. 

@Andrew Rickli, it is fantastic to see someone on here so close to my area! I would love to connect with you outside of this forum and talk some. As you can see, I'm still in the beginning stages but I'm aware that I'm in the beginning stages. It would be great to talk to someone local in your area to see what is happen locally to us. Thanks for the encouragement!

Everyone, thank you so much for your advice! Not only has this shifted my perspective greatly, I hope it helps others who may be in the same situation as I am. I have been given some great advice and really look forward to implementing it!

Hey German Torres , you're at the right spot to learn about REI! I have paid for "guru" courses and they suck compared to all the free content available on this site. There are so many investors that if you have any question, the odds are that someone here will know the answer. Hope to see you around! -Dakoda

@Marques J., I don't have any debt to my name (except credits cards that I pay off monthly). I live of of very little so almost everything I make, I can save. What you are doing is what I want to do. Thank you for the encouragement and advice!

@John Chapman, thank you very much for the advice! That really means a lot to me. I'm looking for a different job in the area, but not having much luck beyond minimum wage positions. I would love to get into sales, but that's not my end goal. I want to get into investing full-time. I want to buy and flip, buy and hold, wholesale, manage, and general construction as well. I would love to farm as well, so that's something I am figuring out how to do as passively as possible. I was raised on a farm, so I understand out non-passive it can be. 

Thank you so much for the advice! It's great to hear it from someone who has been in similar situation. 

@Thomas S., I've honestly haven't had someone be so discouraging here on BP. 

I never want to sit still. I don't want to get in a point in my life where I'm completely satisfied. My desire to go further in life is the only reason I am where I am now. I've gone against my parents wishes and have done something with my life (more than I want to share publicly). I know what it feels like when I'm stuck in a situation where I don't belong. There's more out there for me to accomplish. 

I know that there are ways for me to get out of my job and into real estate faster than simply repeating "I LOVE MY JOB" over and over to my fiancee. She would slap me in the face for not doing what I always do, which is seeking to become something better. 

I will never shut my brain down. Shutting your brain down is what I directly associate with middle-class. I work hard at my job every day. My job isn't the easiest part of my life. I'm sure it's different for everyone, but it's not a cake-walk in the AC. 

I understand that I need to trade my time for money. I would rather do that in real estate than doing something that I hate. 

I really appreciate your honesty. But, I'd rather hear something that makes me think, instead of someone telling me "shut your brain down..." I don't want to hear people say things that get me hyped or share some secret. I simply want wiser people to give me advice on what they think a 22 year old kid can do to put himself on the right path to set himself up for success down the road.

I don't want to come off as being snappy. I'm just very passionate about furthering myself. I believe every problem has a solution. I just want to be willing to look for, and implement, the solution when (not if) I find it.

-Dakoda

@Gabriel Amedee, thank you for the insight. I understand how there is a lot of hype out there. As I mentioned earlier, I'm not looking for any sort of a get rich quick plan. I don't want to give up my paycheck, I just want to work in the real estate arena. I'm tired of working in the help desk field. 

Thanks for all the advice! 

Hey BP,

I want out of my full time job at IBM. I'm sick of it. I know, I know. Working a job (even if you don't "like" it) is a part of "growing up". Working this job is one of the most unfulfilling things I've ever done in life. I want out. I could rant for a long time how I hate my job, but I won't. 

I know that getting financing is easier when you have a job, I know it means you can grow your portfolio faster, I know it gives you a cushion. I'm just sick of my job and want to know what my opinions are. 

I've looked into being an agent, but there's a lot of competition around me (from what I'm told). I've looked into being an appraiser, but that looks very difficult to get into. I don't really know what I can do. I wouldn't mind contracting work, if it wasn't seasonal. It looks like I may have to go to a local area to me (like Hagerstown, Morgantown, Martinsburg, Frostburg, or Fairmont) if I want to make this possible.

Do you all have any suggestions how I can get into real estate full time in my current position? I'm okay with living off of ketchup bread for a year or so.

-Dakoda

*sigh. I needed to get that off my chest.