All Forum Posts by: Andrew Newlon

@Stephen Ross,    @Brandon Sturgill makes a good point. Sometimes homeowners, and even other investors, don't understand what a "cash" offer means. Please do not show up at the house with a briefcase full of cash.  You are heading toward trouble in several different directions. If someone questions what your cash offer means, explain that you have cash funds that are going to be wired to the title/escrow company. Thus, eliminating the need for banks that require long processes including appraisals, inspections, waiting periods, etc. Simply put, you are able to buy their house quickly with no contingencies (if desired). Wholesalers certainly get a bad name and bruise the industry by putting houses under contract they cannot fulfill. A good policy to have is to have the means to purchase the house yourself if you cannot assign/sell to an end buyer. I usually tell the sellers that I may not be the end buyer but rather one of the investors I work with may buy it instead and pay me a fee. If they are motivated, they do not care who buys their house as long as their problem is solved. Remember, we are not providing a service to homeowners that would like to sell their house for top dollar and are not in a hurry.

Hi @Laurie Falk! Sending out your first mailing campaign can be extremely stressful and overwhelming. However, it does not need to be at all. Keep in mind that every investor is going to have different methods and opinions when it comes to marketing. The most important thing is to DO IT and adapt to changes as you progress.

1 & 2. It may help for you to read some articles and material on different mailers and mailing campaign. Your goals and desired volume will help dictate your answer to both questions.

3. Cash is not a requirement to buy a house. But, it is a huge negotiating factor when you do have it. Pre-approval and even Approval will help you close a deal easier, especially when you can provide proof to the seller. It is not wise to get a house under contract if you do not have funds lined up unless you are attempting to wholesale. In that case, you must be confident that you can fulfill the contract.

4. Business names, business cards, logos, etc are non-essential. Most sellers couldn't care less what company you may or may not work for. If they are truly motivated, they care more about if you can solve their problem or not.

I hope this helps you some. The most important thing is to take Action! Finding some local who is currently investing that can assist/mentor you is a huge benefit as well.

@Joseph Cuomo Getting those first few motivated calls are tough. It is very easy to force the deal. There is absolutely no harm in offering your MAO (preferably less) even if you don't think they won't take it. You have no idea what position they may be at in the future. My suggestion is to not spend too much time when your numbers don't match a seller's motivation, especially their debt. You may be missing out on another lead that can become a great deal. @Mykael Williamson makes a great point to always push leads to real estate agents; you never know when they may be able to help you out.

Good job at sticking to your numbers and willing to make offers!

@Jose Castillo Another idea is to look up the list of homeowners within the same neighborhood/part of town as the house you are selling. Pull out all those that are owned by an LLC or have multiple houses. Send them a flyer with the specifics of the house. Mention that you come across several deals and ask if they want info on the next one. If you find a deal with good numbers, you should have no problem finding a buyer.

@Stephen Ross Sometimes sellers need some time to come to the realization of what their house is truly worth and/or the amount of repairs needed. If it is a thorn in their side, that thorn is only going to grow over time. We find that almost every time we visit a house, at least two other investors have as well. If they choose not to accept any of our offers, then it is my goal to be the one that stays on the top of their mind months later.

@Robert Treakle It is easy to try to force a deal in the beginning. Math is math. Let the numbers tell you what to offer. @Adrienne Bryson made some excellent points. That is the same formula most investors use (or something close to that). Having a buyers list and knowing their criteria will help as well. Every investor is different; so is each market. Remember that your goal is to bring juicy deals to other buyers. Hopefully you have enough leads coming in that you can make the offer that makes sense and move to the next lead. Let me know if I can help answer any other questions!

Congrats at taking action @Adrian Williams. You are already ahead of most seeking to become investors. Stay consistent and remember, depending on your market, that it may take several campaign drops until you get a deal.

@Stephen Ross Food for the thought. Most people say to make an offer regardless if you think they will accept. This has a lot of benefits to include some already stated: allows them to come back to you in the future, you truly can't assume what they will take, for every x-number of no's you get a yes, etc. However, I have found another technique that works for us. Our market is saturated with investors and wholesalers; all of whom make the same low offers to sellers. When I begin to negotiate a purchase price with the seller, I can quickly determine how far off my offer is from what they are wanting and how likely I am to negotiate them down. If I feel my chances are highly unlikely, I will explain that I can't make them a fair offer right now. I show them respect for their house and the value they want out of it. I even suggest other alternatives other than selling to me (this does present a great opportunity to introduce baby negatives for the other alternatives). The key to this is FOLLOW-UP. I have completed 3 deals recently where I called the seller up and found them to be more motivated and willing to take a lower offer several months later. @Account Closed made a great point that it depends on the situation with the seller and the condition of the property. Hope this adds a new perspective.

@Justin Smith I would highly recommend visiting the property before making an offer. We tried sending out a large amount of low offers and received the same results. Sellers aren't as motivated on the phone, it's easier for them to say no and hang up, and they don't feel as confident in you as buying their house/fixing their problem. When you visit their home, you can begin to connect with them emotionally and find the main reason they are trying to sell and offer a solution to that. Don't focus simply on the price. It also gives you a chance to validate what needs to be repaired and give the homeowner the chance to realize it as well. I always ask what their asking price is on the phone. Then I follow up with asking if that price is flexible. Based on their responses, I can gauge how close they are to my MAO (maximum allowable offer) and how motivated they are. This helps me narrow down to those that I can work best with. Hope this helps!

Welcome to BP @Laque Dalton! I am an active investor in Springfield as well. Is there a specific strategy you are focusing on (flipping, wholesaling, rentals, etc)? Don't hesitate to reach out if you need anything. There is a large group of investors in Springfield and several of us continuously work together.