All Forum Posts by: Mitch Messer

My preferred strategy for getting leads is to contact "tired landlords."

I identify property owners who have recently filed an eviction suit against their tenants, filtering the court data to pick out high-value prospects, as evidenced by:

- plaintiff (landlord) is a natural person, not an LLC, corporation, trust, or apartment complex

- active (unresolved) case status

- large unpaid rent balance

- plaintiff's address is an actual physical address, not a P.O. box

Depending on the state and county, I can usually extract this data directly from public data sources, such as online court systems.

In addition to names and addresses, often this case data includes landlord phone numbers and sometimes email addresses!

I usually text, but one could also call or send direct mail.

We did this when I was wholesaling and focused on Tulsa as my primary market, and I personally closed half a dozen deals there in 2022.

Understood. Yes, this is how I would do this.

We pay property taxes as well as a landlord insurance policy. We require the tenant to get a renter's policy, with penalties for non-compliance.

If you're going to market the home as "rent-to-own," consider including a one-page signed addendum that makes it clear the tenant understands they have NO ownership interest in the house and that they are "just" a tenant. (Or, if you have such a statement in your lease, make them initial that clause!)

I would also strongly recommend you have your mortgage broker vet all serious applicants as part of your qualification process to see who actually has a serious shot at qualifying for a mortgage in the future. This will save you tons of wasted time!

Serious question: If you did hire them, how would you know if they're any good?

Without some performance benchmarks, I could see you paying out for months with nothing to show for it. Getting 6 leads per week may sound good, but that's only true if these are qualified leads that you can turn into revenue.

I'd definitely want to speak with several of their existing clients to see just how valuable these leads are.

Also, watch out for long-term contracts. These folks are probably going to want you to commit to several months of service, so keep that in mind when you set your budget.

Lastly, it's worth asking if cold-calling is the best way for you to reach prospective clients. (Honestly, it's my least favorite method!)

What made you choose it?

I avoid the term "rent-to-own" since some may confuse it with seller financing.

I think you're referring to here is a "lease-purchase" or "lease-option" (depending on the paperwork used).

If so, I've spent two decades doing EXACTLY these types of deals, and I LOVE them!

Here are my responses to your questions:

1. Upfront payment: We aimed for between an amount equal to 2 months rent up to 5% of the purchase price. This should be referred to as the earnest money deposit (for a lease-purchase) or option consideration (for a lease-option). Be careful NEVER to call this a security deposit, because it's completely non refundable if they don't buy.

2. Term: We gave everyone 1 year (regardless of credit score), with the opportunity to extend (at a higher price) if they weren't quite ready to buy when the term is up. We found that giving more time upfront didn't attract better qualified residents.

3. Commissions: I recommend not doing this with an agent involved, because you'll likely have to pay a commission on the rental AND on the sale.

Hope this helps.

Good luck!

Before you consider giving anyone money upfront to help you "win a grant," I urge you to ask them to provide you with names and phone numbers of 2-3 former clients who actually received money.

As far as I know, the U.S. Small Business Administration (SBA) does not offer grants to start a business, but rather offers funding and support programs for existing small businesses.

If your goal is to become a real estate investor, then I recommend you learn how to analyze, recognize and structure great deals instead.

No, this is home, for now.  We've been doing the #digitalnomad thing since 2018!

Before that, it was 3 months in Medellín, Colombia!

We don't do "cold." 😁

For the next three months, sunny México! 😁

Yes, in the past I have both mentored (unpaid) and coached (paid).

Now, I just focus on doing deals!

(Much less stressful and waaay more satisfying...)

@Dominic Joseph Jean Nicely done: I see your votes!

And, that's really what I meant by "if you WANT support, you've got to GIVE support."

One of the best ways you can show your support here is simply to give a post a vote if it helped you.

Also, for the record, the best way to get great mentors ... ISN'T by asking for them!

You get mentors by just getting started TODAY however you can, in whatever capacity you can. Then, when you hit an obstacle or roadblock, post asking for help to solve that ONE challenge.

When you get responses, remember to say "Thank you!" to those who offer solutions, and then actually go APPLY the advice you were given.

Once you've done this, post and tag those who gave you their advice, tell them (publicly) how you APPLIED it to overcome the obstacle, and then continue pushing until you hit the NEXT obstacle.

Then, repeat. Forever!

The main reason I stopped being active here on BiggerPockets is that I got SO tired of folks asking the EXACT same questions over and over, and then never once taking any action!

This community is PACKED with wise and experienced members, but none of them is gonna waste their time if their counsel is never heeded.

Best of luck to you!

@Dominic Joseph Jean You've overlooked a crucial step that will absolutely torpedo your chances of success, guaranteed!

And, both @Jaycee Greene and @Laura Navaquin are likely too kind and polite to tell you.

So I'll be THAT guy.

When folks take the time to respond to your post with thoughtful responses and sincere encouragement, the LEAST you can do is give them a vote. It just takes a click!

As of my posting this response, you've not given a vote to even ONE of their responses to you.

That makes you look like a "TAKER," and I don't believe you want to be THAT guy!

On this platform, votes are how you say "Thank you!"

And here, as in life, if you WANT support, you've got to GIVE support.

Now, you say you're looking for a mentor. Well, let's see if you're actually coachable...