All Forum Posts by: Account Closed

Personally, I would start off wholesaling. You can do it part time while keeping your day job. You can learn how to find great deals and build up more cash reserves at the same time. You'll need cash reserves if your going to go into buy n hold. Things will break that need repairs, etc.. Along the way, you'll find great deals you'll want to keep yourself for buy n hold.. and you'll have the cash to do so. You're doing the right thing by asking questions, going slow. Take your time, network and learn from those who've been there. With respect to buy n hold.. here in Phx some areas perform better than others with respect to CAP Rate, Cash on Cash, etc. You might be surprised where those areas are.. not necessarily where you yourself would want to live - but those areas provide the best leverage (more cash flow per your dollar spent). Do your research, take your time, don't over leverage. You don't get rich quick (or build cash flow quick).

I think the % response depends on the list and the mailer (post card or letter). For absentee owners, I've mailed thousands and thousands of postcards here in Phoenix. I get about 0.6% response on a post card and I would get about 1 deal per 3,000 post cards mailed. Now, interestingly, here in Phx it's getting tougher to get a deal with the Abesentee owner list because there is so much competition using that list. While I get the same response rate, it's tougher to secure a deal because I am essentially bidding against 5 other investors who've mailed the same owner! 

In the past, when I mailed letters to this list, I got a better response rate, but it was more expensive to mail.

I've just started mailing to Probate due to the competition found in Absentee lists.

I am sure in other parts of the country there is less competition than there is in Phx with all these lists.. Actually I am thinking of doing some virtual wholesaling -  wholesaling in other parts of the country.

Wow! Thanks for the post David! I too use direct mail. Here in Phx the tried and true absentee owner lists has been hit very hard by so many investors. Motivated sellers who call me in response to my mailing have a stack of post cards they've received from other investors and 5 other investors to call back after me. :-(  They have a lot of options and with that much competition, prices get driven up above my max allowable price. But, deals can be found, just gotta get creative!  I do appreciate your post and the detail you provided. I like the monthly commitment and budge you set. It motivates me to re-look at what I am doing and get refocused. Thanks again!!

I wholesale properties in the Phoenix metro area. I've been wholesaling here for about 2 yrs. I market directly to homeowners via direct mail, so all properties I lock up are off-market - not listed on the MLS. I have been able to find and lock up discount properties pretty consistently and pass them along to my cash buyers. However, the last couple months it has become more difficult. Seems like there are A LOT of other wholesalers/ investors out there doing the same thing which is running up the off-market prices ;-) Nevertheless, there are still deals out there.. Just gotta know where to find them and be creative. I could always use more cash buyers, so if you're looking for discount Phoenix properties (buy n hold or fix n flip), let me know. I am also interested in a Phx meet-up as well!