Wow, it's been almost a year since this topic started and it's interesting to look back and see how things have developed. I have changed my business model almost entirely and it's all been for the better.
I used to do a ton of direct mail advertising, now I do none. I've found that I really don't need to and that I can find plenty of deals through the MLS, trustee sales, and other people in my network. Managing a big marketing campaign is a lot of work so I can't say that I miss it but I think direct mail was a necessary first step and it allowed me to build a lot of relationships with other investors that I still maintain today.
I'm sure I will do more direct mail in the future but I will do it much differently. For starters, I probably won't mail absentee owners. I found some good deals with absentees' but personally, I would rather negotiate with banks instead of individuals - it takes the emotion out it. Not to mention, I've inherited some really nasty tenants when buying from absentee owners. I bought a 4-plex back in December where I've now had to evict 3 of the existing tenants. I just got the last guy out yesterday and boy was it interesting. We found plenty of marijuana and crack pipes, pills of almost every variety and about a half pound of cocaine. For me it's completely non emotional and I expected evictions would be necessary when I bought the property but my mindset on these types of rentals has started to change - they're too management intensive.
Over the last year my focus has shifted from buy and hold to buy and sell. For me the process is easier and there are less headaches. I've even considered selling some of my rental portfolio, although I haven't yet. I feel that my time would be better spent with larger multi-family buildings. I think it would be easier to manage and maintain if it was all under one roof. Right now I have houses all over the city and even with a manager, it's becoming difficult to manage my manager while trying to manage all my flips as well.
Right now my time is best spent raising capital and finding more deals. Fortunately, I've got plenty of deal flow and I have plans to expand into 4 other surrounding counties in the coming months. Ideally, I'd like to snag 3-5 a week but I've been running short on capital and need more investors. I tend to shy away from the hard money rates these days but if you or anyone you know is looking for a modest return from an experienced investor, I would definitely appreciate the connection.
How about you, what do you think? I'd love to hear back from other investors that have dealt with some of these same issues.
Anyways, it's been a fun ride this last year and I'm looking forward to the year ahead. Good things are coming and I can't wait to develop relationships with even more of you.
-Matt Sewell
