All Forum Posts by: Oscar Londono

Wholesaling, currently running a direct mail campaign in miami-dade county. What's your criteria for purchase so I can send things your way?

Also another question, how does the typical 70%ARV-Repairs max purchase price do in Miami, is it even possible?

@Elio Levy
Are you buying for yourself (fix +flip/hold) or wholesaling?

Just wondering what you guys have noticed when doing your mailers, how is your response rate when mailing to business entities compared to actual people? Deal rate?

I'm not sure if I should separate the groups and send a different type of letter to the entities (maybe a white formal letter) or just purge the entities from my list.

My mailer is a yellow letter with a "handwritten" font, typical "hi my name is oscar londono and I want to buy your house... etc".

I'll update this thread with my response rate, sending out my first batch of 500 letters this week.

I look at it this way:

1. We are constantly bombarded with choices, that's free market capitalism, e.g. pepsi vs coke. Now sometimes why we make that choice will be due to personal, emotional reasons (like in pepsi vs coke), whereas other times it will be logical reasons (coke zero vs regular coke). You are trying to get a deal from someone who will make the decision on an emotional AND logical level.

The problem is their intermixed, it's up to you to manipulate and understand how they're working together. Some people need time, some need money, some need a lien to go away, some need to like you and some need everything. You have to bring a solution to the seller that the other investors aren't giving.

However, it's tough for you to even find out the solution because...

2. You have to target a list that hasn't had this luxury of choice, this will make the acquisition part easier. That means, get creative. Marketing to absentee owners like every other investor who does direct mail? That's going to make it tougher than it should be. Plenty of resources here on this site.

This is even more important if you're a wholesaler, since you need a much larger margin.

Take home message - everyone goes for the low hanging fruit, you'll have to either climb to the top or find another tree...

edit: Also, remember your response rate will vary with different pieces, split test.

Kenneth I think he's saying that the rents are $1100/unit, so it would gross $4400 (~3800 since it's owner occupied with room mate),

50% rule would leave him with 2200 in expenses which means he'd be losing

3800-2200-2579.15= -979 all included (hopefully).

At least that's my newbie analysis.