All Forum Posts by: Kelly P.

Emma - for vacancies, maintenance, and property management I use 10% for each. You mentioned 12% PM so I used that along with the 10% for vacany and maintenance. My calculations show monthly cash flow of $316 which is a yearly cash on cash return of 17%

I agree with everything that has been said. I have a large list of buyers I created through opt-in squeeze pages and by doing deals. When I send them a deal I usually hear from the same 2-3 buyers. I get a lot of responses from "buyers" who are actually looking to wholesale the deal themselves. In my market there are companies fishing the MLS and pre-foreclosures then simply sending out info through email blasts to buyers. Of course these properties are near ARV after they put in their fees. I actually had one property recently sent to me by two people on the same day but with different prices!

I saw I got a message on BP but when I attempted to open it, it said I was "banned". Not sure what is going on. Can anyone advise?

I am assuming you are paying cash so there is no monthly payment. Factoring 10% for vacancies, 10% maintenance, and 10% property management fee, you are netting $5,460 per year which is a 12.6% cash on cash return. If you manage it yourself, COC jumps to 15.2%. Either way, a decent return. Good job.

@Ceasar Blackman I use Click2Mail.

sorry for mistype. "discount in any type of marketing"

@Jessica H. this is a topic that has received tons of comments in other posts and it appears you are like other YL investors - getting owners calling wanting to know how you got their info along with the tire kickers, "I may sell depending on the price." Yellow letters are known to provide a high response rate but not a good motivated seller rate or conversion rate. I know that statement will cause a stir with some YL devotees, but I am not to first to make that observation here on BP. Because this is a numbers game, YL investors like the response rate, hoping to identify a motivated seller.

I don't suggest discussing your desire to purchase at a discount in any pie of marketing. Get them to call then qualify them as motivated or not. If you find you are not getting motivated sellers calling, tweak your marketing strategies.

Ceasar Blackman I used Postcardmania. They create a very slick looking piece but depending on your viewpoint, that can be good or bad. I did not buy a list from them. However, be forearmed that if you provide a list Postcardmania will charge you extra (without telling you) for addresses that don't appear correct. I stopped using them and got better results with a different postcard - mailing to the same list.

Peter Fennig I used Postcardmania every 6 weeks for about a year. Did get calls but no deals. The yellow postcard was through Click2mail. I did change the content slightly but it was standard "we but houses quickly" verbiage.

I used Postcardmania for some time and has zero results. I switched in August to a plain yellow postcard I designed and have two deals under contract from that mailing. 1000 postcards only cost $250 so it was very cost effective. Much more economical than yellow letters.