All Forum Posts by: Lucas Machado

You should think of it this way: if they default on the loan, are you prepared to take ownership via foreclosure - is the deal that good that you would at least not lose money if you ended up having to foreclose? Obviously, you want the first position on the property.

@Douglas Vogel As you noted, response rate is essentially meaningless.

If I had $5,000 and $5,000 only, I would spend about 1 month opening a website in my target market, allocate $600 per month to the hottest long-tail keywords on Google Adwords, and begin the process of ranking your website organically. The more narrow you tie your keywords, you can keep budget quite low. Unfortunately, you will lose control of the type of property in exchange for enhanced motivation to sell.

You can hire a VA or use a call answering service, or just accept the fact you need a good voicemail and get back ASAP.

That said, that won't really help you target MFH. The only way I'm aware to target MFH would be too work MLS and/or buy a DMM list for those types of properties. MFH is rough because these people are often investors - so you should run their names in the local appraiser to make sure they do not own property (or list vendors can often target the mailing address to a limited number of property ownership).

Motivating!

Well, if you need more capital, $30k can be a solid down-payment for a hard-money loan to flip a property and build your bankroll to a higher level.

@Olivia Darling #5 and #6 were the hard parts. You found money and the property? The rest is pretty easy. Just connect with someone local and experienced. If you have the deal and the money, I can't imagine you have too many problems.

If #5 and #6 are not done, then what's really the first thing to figure out. The rest of the stuff is going to be property and financing dependent.

Good luck with that closing!

@Youdo Thirakul One thing to consider - do you have cash in place and ready to go for your fix-and-flips? One good and legit way to build capital is by providing the service of the listing agent to synergize with your off-market marketing (if you are doing so). Only downside is you do have to note this one your advertising, but I believe it could be presented a positive. There are so many wholesalers out there that could do just as well, and keep and build a positive reputation, by providing listing agent services.

@Justin Seng Manage your time well if you're going property property. I did this several years ago when first starting. By the time I got home and formulated my offer, houses were under contract.

@Account Closed It's a fairly loaded question. What's a deal? You can do a small wholesale for $500 assignment fee consistently. I've seen people in my market lock thinks up at fairly ridiculous prices, cancel 90% of the time, and that 10% of the time make a small finder's fee. So if you send 1,000 yellows, my guess is you could get a few cheapie deals depending on your negotiation skills and buyers list is.

If you're shooting for bigger deals, $20,000 to $40,000 - you probably need to send 3,000 to 5,000 yellow letters depending how competitive your market is. If your sending a yellow letter to an out-of-state owner, the recipient is getting 5 yellow letters a day, you need to mail a lot of yellow letters. I have no knowledge of Arizona or the competition there. In Florida, it's quite rare if my offer is the only one on the table. My DMM pays off around around 3 or 4 to 1 (profit) so if I'm doing a $40,000 profit deal - I'd expect to spend about $10,000 in marketing to net a $40k profit deal. I certainly don't get to the range of 10 to 1 returns on any DMM except probate (spending 1,000 to make 10,000).

Although some deals can happen quickly, direct-mail deals notoriously are slow. You are soliciting the lead, not the other way around, so you often need to wait it out potentially for over a year. But again, the smaller deal you're willing to do, the more consistently you can do deals.

Welcome!