All Forum Posts by: Jim Pellerin

 @Daniel Spillane You are doing all the work, so 25% seems fair. You still keep the principle and appreciation. He's just a money guy.

 Theres buyers in just about every market. Keep in mind the more popular markets have the most people looking for seller leads too. So it's more competitive. 

Where to Find Motivated Sellers

Here's a list of where I think the best place to find motivated sellers is, based on my 25 years of REI and marketing experience:

1. Google Adwords - Expensive but you can start small and scale up. I think this is the best way to scale because you are targeting people already looking to sell and you can literally start your campaign in a couple of hours. Some tech skills are required or you can outsource it. Intent Marketing

2. Acquisition Wholesalers - co-wholesaling. need to split the assignment fee or add your w/s fee onto the price but you can do a lot of deals with less work. Outsourced

3. Realtors - Contact investor-friendly realtors and ask them to look for distressed properties for you. Promise them double commissions for their own listing. Outsourced

4. Birddoggers - People who are driving the neighborhood anyway (mailmen, etc). Or people who want to go out and find properties for you and get a referral fee. They just let you know if they see a distressed property. You still have to cold-call the owner. Disruptive Marketing

5. Direct Mail - Huge cash expenditure so can only scale after you make a few deals. Budget 10,000 mailouts for 2 deals. Disruptive Marketing

6. Property Sites - MLS, Zillow, Craigslist, FB marketplace - a lot of work for a few deals. Use by lots of wholesalers and retail buyers so a lot of competition. But a good place to start if you don't have a budget but you are willing to put in the time. Intent Marketing

7. Lead Provider Services - Expensive. Charge by the lead ($150 - $450). Or by month ($1K). May be effective or not. Gamble. Still have to cold-call the owner. Disruptive Marketing 

8. Lead Provider Sites - Propstream, Batchleads, Listsource, etc - not very good results. everyone who has the software goes after the same people. Still have to cold call. Disruptive Marketing.

I know there are others out there but I don't really have an opinion on them (like driving for deals, FB ads, bandit signs, etc). 

On average, you should pay about $2,500 in marketing for 1 deal if you are really wanting to scale. You should allocate a percentage (15% to 25%) of your total revenue towards your marketing campaigns.

You can go free and work hard but you won't be able to scale. But a good place to start.

I'm a wholesaler with buyers in Dallas for your fix and flip SFHs if you want to partner on some deals.

I also have buyers for large multi unti - $10M+ and 100+ units.

What type of properties? SFH? MFU?

 I think 5% is fair considering he's also getting a share of the rent.

Why not sell it, use the profit to buy a larger bldg using a 1013. Dont buy more sfh's. The only time more doors makes sense is if it's in the same bldg. So dont buy more sfh's, buy a 4-plex, then an 8-plex, then 16, etc.

 There's no guarantee on your monthly cash flow. And $200 is not alow. I bad tenant and a $10K repair bill later. There are always unexpected property and tenant problems. Take your money and run.