All Forum Posts by: Doug Price

Thanks @Anton Taylor. I hope it helps you out. There are a fair amount of how-to videos on youtube. You'll need to watch a few of those to get the hang of the search methods. Good luck! 

I have been wholesaling seriously since March of this year. I closed my first deal through networking with one of my cash buyers in February and immediately reinvested the money from that deal into marketing. Since March I have mailed a total of approx 1800 letters distributed pretty evenly across Mar/Apr/May/June/July. My letters are "handwritten" - computer generated font - yellow letters with actual hand addressed invitation size envelops and a first class stamp.  I have used agentpro247.com for most of my data collection. I've pulled lists based almost exclusively on absentee owners, but additionally I have gotten a tax delinquent list and a code violation list from the city. All totaled I have received 61 responses (my July letter is still hitting mailboxes) and I have closed three deals (although followup is still underway with several of those 61 responses that may turn into a future deal). My questions are, is this an acceptable response rate (3.38%)? And close rate (4.9% of responses)? Or is there something I'm missing on the lists I am mailing that would get a higher rate of conversions? Should I add a multistage mail campaign to hit the same lists with postcards and/or different letters?

It should be noted that what prompted this post is a review of the five total deals I have closed. Two of the five have come through networking and conversations. I am gearing up to get my real estate license because I have seen firsthand the value of being able to network with the people who have realtor in their title and the MLS in their back pocket. So my questions here are, those of you whom wholesale with a real estate license, do you still direct mail? Or do you rely more heavily or exclusively on networking with investors and sellers? And what is your primary deal source, direct mail or networking?

Thanks for any comments and thanks for your time, Doug (Journey Properties, LLC, Roanoke, VA)

@Account Closed I am sending this letter to only property owners who's home is clearly abandoned. In other words I am driving for dollars at the moment. 

I have received one viable response on two mailings totaling about 75 letters. Not exactly stellar. 

Thanks @Doug Vigliano and @Steven Leigh for the great tips. I've revised the letter in preparation for another mailing this weekend.

I want to get some feedback to a letter I am sending to solicit potential sellers. This is a second draft based on feedback I received from my local REI group.

I am sending the following letter in a hand addressed envelop with an attached handwritten post-it note that says, "Dear Eddie, Please give me a call anytime. Thanks, Doug ###-###-####"

Here is the letter, thanks BP nation for any feedback on making it better:

Dear Eddie,

Recently, I noticed your property at 526 Chapman Ave NW, Roanoke, and I wanted to reach out to you to see if you are interested in selling it.

Please give me a call to discuss the benefits I can provide:

• -I buy with cash to close quickly! As quick as 7 days!
• -I convert your unwanted home into much needed cash! Who doesn’t need more cash!
• -I buy your home as-is! No need to repair or clean it out!
• -I purchase your home at no cost to you! No commissions or unexpected fees!

Regardless of why you need to sell your property, I would like the opportunity to speak with you about potentially being a solution. I look forward to hearing from you soon. Please call me at ###-###-####.

Thanks for your time.

Sincerely,

Doug Price

###-###-####

So I am in the process of setting up a wholesale business (Roanoke first, then Knoxville). I have been working very hard at developing the "backside" of my business before going live; getting budgets and accounts in place, establishing my LLC, website registered, extensive buyer list, etc.

One tactic that I have been introduced to has been working with local realtors to find deals before they reach the MLS. In a nut shell I establish relationships with local realtors who list homes in rental areas (check). Next, I find a realtor who is willing to work with me on writing deals and representing me (check).

But here’s the snag I’ve hit, the realtor and firm who is willing to work with me turned me down once I reached their legal group. This after meeting with the realtor, their broker and their in house title agency. All three of the former were good to go, just the legal group who said, “pass.”

The legal concern was the liability in representing me as the wholesaler. According to their legal group “wholesalers are always being taken to civil court” presumingly because the wholesaler does not follow through on the contract they wrote to purchase the property. The assumption from the legal group is that the wholesaler was unable to find a buyer for the contract so they do not close, thus moving the issue to civil court.

So a long story short, the legal group does not want to be exposed to such liability. I hate this because up to this point the realtor, broker and title agency are all on board.

How can I work around this as a newbie wholesaler? Has anyone else experienced this as a wholesaler? Is double closing the only option to solve the problem (I understand I then need to have the cash to close)? Or is there another work around to having them represent me as the wholesaler and me limit their liability?

Thanks for the input!