All Forum Posts by: Michael Kev

So I've gotten a couple of short sale leads from marketing to homeowners with 30%+ equity. Not sure why they would be on the list but I'm not complaining.

A few years back I marketed towards 60/90 day lates but didn't really get anything, although I only sent about 3,000 mailings altogether.

I want to ramp up my marketing and I was thinking of doing another mailing to get short sale leads. I'm thinking of trying to get short sales and I remember being told that the companies don't sell that data anymore, but I've heard recently that the law has changed and that they get can it from the credit bureaus again.

I'm thinking of getting around 5,000 leads and mailing them 3x. Is anyone around still marketing to these prospects and what are your thoughts?

Also wondering if anyone markets to other property types besides vacant land (ie warehouses for conversion).

I've been wanting to do new construction and development for a while now. I've used listsource for marketing to absentees with mild success, but I have the capital and experience to do new construction, and I'd really like to work on getting a good piece of land for a good price in my area that would be ideal for new development.

I was wondering if anyone markets to land owners and what criteria you would use?

I was thinking the following:

Property Type: Vacant land

Length of ownership 4+ years

Equity: 30%+

Not really sure whether I want to exclude corps or not. Reason being I figure there may be some investors who bought a piece of land and for whatever reason couldn't develop it (no capital, maybe not experienced, other projects getting in the way).

Btw, I figure postcards would be the best type of mail to send to these prospects. What are your thoughts?

On reading threads here about direct mail, I notice everyone excludes trusts when they're cleaning their lists. I was just wondering why they aren't good to mail to?

@Dev Horn

How come only 50% equity and above? Wouldn't you want to market to this list for possible short sales?

@Jon Holdman

Appreciate the response.The reason I put 45% instead of 50% was because I would be doing most of the management myself, and because I figured for higher end rentals the cost of fixing something in relation to the price of the property wouldn't be as much. Perhaps I should reconsider.

So as is, it's definitely not a deal. FWIW, I don't normally buy properties with these types of returns, but I just want to see what other options I could use. If you were the one making the offer in this scenario, what terms would you change to make it more profitable, while at the same time being decent for the seller as well?

Thanks for the replies.

@Darren Sager I suppose the benefit for the seller would be getting closer to his price than my cash offer would be, along with not having to worry about managing a property and having a steady stream of income at the same time. I'm pretty new to this aspect of RE though, and I definitely need to learn more.The property is in Brooklyn. Actually I spoke to the owner today and he doesn't even want to sell anymore, but I still want to get better at making sensible offers for these kinds of deals.

@Jon Holdman I realize an 8% cash on cash return isn't the greatest, but it really is difficult to find good deals in my area. I could venture to Jersey, but to be honest I'd like to concentrate more on the NYC area as I have more connections here and I think this particular area will be getting more and more expensive in the next decade. I would never buy only based on speculation, I'd like the fundamentals to be good as well, which is why I wanted your opinions.

The owner hadn't expressed seller financing, but I want to start using it as a second offer if I can't negotiate an all cash deal for a rehab or wholesale. Just so I can understand, why is it unlikely a seller would accept a 30 year fixed rate loan? If you were to start at 30 years and the seller wanted a shorter term (say 15-20) what parts of the loan would you change that could benefit you in your favor? Lower interest rate? Balloon payment in the end?

Also, what do you think of only accepting a fixed rate?

Oh and the asking price was $850,000. Forgot to mention that in my OP.

My main business model is to rehab and resell to an end user.

I got a call from a guy who owns a 4 family house. The layout is a 2/2/2/1 bedroom. Fully tenanted month to month except 1 who has a lease. He says they're all paying, not sure if it's true or not.

2 bedrooms in the area rent for ~$2,200

1 bedrooms are ~$1,400

I haven't seen the property from the inside yet, but it's around 3,200 sq ft. Decent for a 4 family.

Lets say I want to be conservative and say it can make $7500/month instead of $8,000/month. Let's say expenses are 45% at $3,375/month.

I was thinking of making an offer of $750,000 with $75,000 down, 5% interest for 30 years.

This would put me at paying $3623.55/month to him, along with the monthly expenses would put me at $7,000/month with $500/month in pocket. Obviously the cash flow isn't amazing (my market in NYC really doesn't have great cash flow) but I wanted to get your thoughts on this offer?

Btw, the seller hasn't expressed interest in seller financing (I only made him an offer that would make sense for me to buy & rehab) but I just want to get "practice" thinking of more ways to make offers. Any help is greatly appreciated, thank you.

Sorry Joe,

I don't seem to understand what you mean. Could you elaborate?

I'm currently taking the returned mail that I get from my mailings and I want to look up the owners whose house might be vacant and send out mail to them/their relatives in hopes of reaching them.