All Forum Posts by: James Barnhart

Quote from @Lindsey Johnson:

Quote from @Eliott Elias:

This type of marketing gets a 10% call back rate 

@Eliott Elias

@Eliott Elias

I am trying to solve the "problem" for some prospective buyers and sellers.  We are mostly retired now from real estate investing and are enjoying that.

So when my wife and I receive those letter, cards, texts, from someone wanting to buy a property in this hot market, we see that none of the "advantages" of selling have any appeal.  (don't need to get the house in shape, quick closing for cash, etc.)   My point is that IF some of the ads you put out, had a different appeal to sellers, you would NOT just be like a thousand other buyers saying the same thing. Do you ONLY want fixer uppers?

What makes your ads any different from all of those other RE guys looking to take advantage of sellers?  Nothing!

Many people are not in financial difficulty, and their properties are not run down eyesores.  Why would they consider you?  What would you want if you were them?  A check every month instead of one big one?  That would interest a lot of folks. Something else?  People get solicitations almost daily.  You could get more success if you don't put everybody in the same boat.

Well, what if you offered to buy the house and let the owner hold a mortgage, rather that you paying cash?  Paying the seller a monthly payment could appeal to people that would want to have an extra source of income for their retirement.  And, you wouldn't have to come up with as much cash to buy the property.   Note buyers and sellers might be interested too.  
If you added a couple more sentences mentioning this, to your "want to buy" note, you would probably increase your chance of finding a seller. 

I get about 8 to 10 cards every week, asking to buy my house.  I notice that they ALL have the same message. 

1. will buy it in any condition, no need to make repairs.

2. can close in 2 weeks

3. cash offer!

This could get people that are broke to bite, but it doesn't appeal to many of us.  I have properties in nice condition and I am not in financial difficulty.  Who cares if you can close in 2 weeks? 

What message could you put in a letter that might get the attention of most of us?  I think that it's time to talk to some potential buyers and ask them what might get them to sell.  I would love to hear your answers.  It's time to change your approach. 

I have some ideas, but I want to hear from the letter and card senders, please.

Could you give us an example of this?  Maybe we could look at the numbers and see if we can make an adjustment or two, so it could work.  There are a LOT of very experienced RE investors here.  Maybe they will see something you don't.  I did a few deals in the 1980's when the interest rates were very high.

Don't forget to talk to the potential sellers and ask them if they would be interested in some seller financing.  Some sellers don't want a cash deal to avoid a big capital gains tax the next year.  

Brandon is correct. Wholesalers need to build a buyers list FIRST. Ask the prospective RE investor buyers what type of properties they want, what the percent they want to pay for a ARV property and let then know what the condition and approximate fix up costs will be. THEN, go find properties that they want to buy.

As an example, a house with $100k after repair value, investor wants to pay 70% of ARV, and minus repairs, (let's say $30k) So, the house is worth $40k to that RE investor.

The condo HOA often holds up the closing, with the new owners getting approved by the board timely, and getting the management company to respond to requests also.
And, the banks are more leery of lending money for a condo, if the association is not financially sound, after many HOA's didn't get a lot of dues owed from bankrupt former owner for years.  Some condos are still in receivership. 

That has been our experience.

No problem with our middle class rentals.  It's "on cruise control."

The reason is careful screening and selection of the tenants and treating them as good people, expecting them to do the right thing.  It works.

I love your "Not my circus, Not my clowns" comment.  I think you handled it well,

In Florida, it is the same.  Unless it is your own residence, a contractor is required to get a permit.  The idea is that the roof, etc., can collapse on yourself, but not on others.  The government is protecting the public if they walk into your building.