All Forum Posts by: Account Closed

I think you would spend more time trying to save $.46 then working on your business. Don't be a penny smart, pound poor. Focus on ways to make more money rather then saving pennies by stealing.

@karen margrave Hi! Yes we do live close. I used to live in Foothill Ranch. The community I'm talking about is Laguna Woods! Some how I accidentally mailed to that community and I got a lot of calls. There aren't any buying restrictions or renting restrictions from what the sellers have been telling me, but I need to look into it more.

I'll keep you posted on if I get anything in there. Are you a member of any of the local REI clubs?

Has anyone tried investing in retirement/age restricted communities? I have a few in my market and I accidentally mailed to one. I got a huge response, which was interesting and got me thinking... I was thinking of creating a little niche here. Either to buy, rehab and sell. OR buy as rentals.

Any thoughts?

Potential downsides- the HOA is about $200 higher then your typical condo community. Might be harder to sell. Any others?

Potential upside- Not as many people going after it. Tenants occupy for a really long time and are usually pretty low maintenance.

Buying off the MLS is really tough right now. There just isn't enough of a spread since your paying a lot in Realtor fees.

You've got the right idea with direct mail and bandit signs. Buy directly from sellers and you'll have a bigger spread to fit in your rehabs costs & a profit. Look up articles on direct mail. Really focus on that. They say for every $5000 you spend, you should get one deal that brings home at least $25K. Not really sure who they are, but they say that... :)
Create a system of following up with people who call you. Try to make one offer a day. Even if you don't have enough calls to do that, pick up and old offer you made and call the person back and make them a new offer.

I'll tell you one thing, its easier said then done. I too have a full time job and have a hard time managing it all. I'm going full time in a few months hopefully!

Aaron Mazzrillo Hi Aaron- I've actually gone to one of your meetings. I wish I lived closer otherwise I would go every month.

I'm no seasoned pro, but the one deal I did recently, the guy didn't want to deal with the hassle of selling retail. I got close on another deal recently but lost it to another investor. This women was in the same situation. Both came across like they weren't in any financial burden, just that they wanted to cash out and be done with it.

The hassle factor of evicting their tenant, rehabbing the place, then listing it was enough for these people to consider taking a hit just to sell it fast to an investor like me.

The problem that I'm facing right now is that its such a hot market, people don't even need to go through that much work and their property still sells in a matter of days. So, I'm in a dry spell. I have barely any good leads coming in with this hot market. How has it been for you?

Great thread... Looking forward to more comments!

Michael Quarles I absolutely love that. I'm printing it out and posting it on my board. Right now I cant afford more the 2000, but with every deal I do, I promised myself I would go up 1000 in mailers per month. That way my previous deal helps me pay for the increase in expenses.

Tucker Merrihew Maybe we should be more specific about what kind of deals? I've also noticed that the area you invest in will have a different response rate. I live in a really hot market (Orange County, Ca). You don't find as many motivated or distressed sellers, but when you do, the profits are in the $40-50K range from one deal alone. My brother has been using DM for some time and feels like he has gotten a deal every 3500-5000 letters. I think some lists just suck, and you end up wasting a month on a bad list or a bad area for investment. There is also a TON of competition in the Inland Empire area, so I have to send out way more letters to get responses.

Anyway, I feel like I am on the right track with 1000-2000 per month but its my list and my letter that needs work. I just tried a new letter that's on letterhead, and tells people a little about myself. I'm hoping those tweaks increase my response rate to 2%.

Gary Parker I have had the same experiences as you lately, which is why I posted. Sometimes you just get a bad batch and your phone doesn't ring at all, and if it does its just a tire kicker. Its really discouraging. By the time I close my first deal, I'll probably have to use the money on all my marketing fees for the year. Its my second deal that will be my income... Hope that one comes!

Hi everyone,

In my first year of Real Estate Investment, my goal was to get three rehab deals in 2013. My best lead source has been direct mail, so I'm really focusing on getting my marketing to be at a manageable, yet profitable level.

I've been thinking of upping my mailing activity from 1000 to 2000 mail pieces sent per month. I got lucky with 1000 mailers per month and managed to get one good deal after 3 months. But lately its been a little dry. I think I'm not mailing enough, but asking for your opinion. I've decided to bump up to 2000 per month. This 2000 includes mailing previous people I have mailed before. (I want to hit the same group every 6 months until I have more $$ to do more.)

I was happy with getting my one good deal after 3000 mail pieces sent out, but its been another 5000 and I haven't gotten much. (I also blame it on my lists... I was experimenting with different lists and they were duds. Probably wasted 1000-1500 on a bad list... I'm going back to what worked for me before in my first 3000.)

I was hoping for every 5000 mail pieces I send out, I should get 1 deal. Does that sound realistic? How much do you mail and how many deals are you getting out of it?

Michael Quarles

I just posted The Newbie Gets Her First Deal! And the first paragraph explains why I need it!

Yes you heard right, I got my first deal. But I need 2 more deals before my baby is due in August for me to be able to do real estate full time and not go back to my J-O-B. I currently work full time and I'm juggling a 2 yr old, a pregnancy, and my REI business I just started in October, 2012.

I have to hit my goal or I'm dropping both my kids off at day care when maternity leave is over and going back to my J-O-B.

I wont let that happen. I will literally refuse to go into labor if I don't get two more deals. You'll probably see me in the news "Lady births baby on her lawn because she refused to go to the hospital until she makes money in real estate."

Well if I don't win the prize, I hope I at least entertained you. :)

Jon Holdman
Jon, you give great advice. Could you ellaborate on "a whole different list?"
Also, I'm not solely a wholesalor, I intend to fix and flip as well. Not sure if that makes any difference though as far as marketing and lists.

Michael Galloway I am for sure going to get more legs on that table. I'm a little limited on cash and time because I work full time, but I do intend on doing more. Thank you for your advice!

Arktavious Sally And thank you so much for the encouragment. Sometimes we just need to hear "Dont give up!"