All Forum Posts by: Dave Lloyd

@Leah Bonner We haven't ever tried to do an email campaign but we have had success with direct mail campaigns and so have many of our investor associates. Here are a couple of tips:

• Find a reputable company that specializes in this type of service and will let you target an area like a zip code and will also let you select the types of people you are going after. For example, the service we use will let you target vacant properties, owners that live out of state, free and clear properties and a myriad of other choices.
• Send multiple mailings to the same person with different wording. The service we use sends three different mail pieces spaced, 3 or 6 weeks apart, I can't remember for sure.
• Answer the phone. When someone calls do everything you can to answer the call. Lots of people will call once and if you don't answer, they won't call again.
• Be consistent. The rate of response is low but consistency is one of the keys.

We have closed at least one deal on every direct mail campaign we have done, which has more than paid for the campaign. If you would like to know a couple of good services we know of, let me know.

The formula I use is (monthly rent * .6) - profit = debt service. Now this needs some explanation.

Monthly Rent:  I get an idea of what the monthly rent should be by going to sites like rentometer.

.6: I multiply the monthly rent by 60% to take out 40% for the following: 10% vacancy, 10% property management, 10% maintenance, 10% property tax and insurance. (These are estimated amounts. If I get a counter offer, I will get more exact with these numbers)

profit: Subtract out whatever profit you want to make. Our minimum is $200 per door.

debt service: This is the monthly mortgage payment you can afford to make. Once I have this number I go to a mortgage calculator and plug this in as the payment amount and calculate what loan amount this payment can support.  This gives me an idea of what to offer on the property.