All Forum Posts by: Nick Rosenbeck

Quote from @Adrian Lammersdorf-Scioll:

They have worked well for me, but again, I've sent tens of thousands of them. And I've never written a letter by hand myself. Have always paid for a service to do it. 

Keep in mind - a good response rate is between 0.5%-1%. And of that, you might need to talk to 30-40 sellers with proper sales skills and follow up before you come to terms with someone to move forward with a purchase. 

If you're established enough as an investor that you're already doing projects and own assets, it's highly likely that taking the time to save 10 cents per letter by doing it yourself is not worth your time. You're better off putting that time into refining your renovation process or networking to get more leads as a realtor, for example. 

To crush it with direct mail, I'd say save up $20k-$30k and run a proper mailing campaign of a few thousand letters per month for 3-6 months. Hand writing a few hundred letters per year will take up tons of time and likely continue to produce poor results. 

Hope this helps!

@Adrian Lammersdorf-Scioll
You're going to have to send way more letters than that if you want to have anything close to decent lead flow, especially in a competitive market like Orlando. Consider using a mail house like Ballpoint Marketing or Open Letter Marketing. 

I've run direct mail campaigns in several markets and it takes a lot of volume (3,000 letters minimum) and consistency (one touch per month) to gain any traction. 

If you're running a tight ship, you can expect to drop 10,000+ letters before you get a deal, and then you should average 3,000-4,000 letters per deal moving forward after that. 

Look up guys like Ryan Dossey and Mike DeHaan and they'll tell you the same. 

Best of luck!

After traveling all over the place and working remotely for the last couple years, I recently moved down to Austin, TX. I would love to connect with local investors. I've got wholesaling experience, and have worked in the mortgage industry as well. Looking to build my network down here! If y'all know of any local meetups as well, please let me know. 

Thanks!

Nick

Off Market opportunity in AFB town Clovis, New Mexico

3/2/2 1,577 sq ft

New Roof!

Needs cosmetic updates

$189k ARV

DM me for more details

Unfortunately, when you first start on the amortization schedule (mortgage payoff schedule), the majority of your payment is going to interest. Which means of the $3,000 mortgage payment, less than $400 of that is actually going to principal. Without doing work to the property, you're going to be relying on market appreciation, and a very slow mortgage pay down in order to build equity.  Also, you won't be able to conventionally refinance a primary residence after only 6 months. The new minimum is 12 months. https://selling-guide.fanniema...

Your best bet would be to either do work to the property that would significantly raise its value, or work extra in your day job or a side hustle to build your next down payment. 

Check out Billy and Tarah Fernandes at Bumble Bee Properties. They do tons of deals in that area. 

Hey Judson, 

I would give Rocket Station a try. They primarily work with RE investors and could be a good fit for you. I'm not affiliated with them so I won't give you a whole sales pitch, but they may have what you're looking for. I personally know multiple investors that use them. Pretty sure their initial strategy call is free as well. https://rocketstation.com/

Also, now that I read your title again, $3000 is not a large spend for 1 deal a month. That's actually a pretty solid marketing spend per deal. Assuming you're making $10k-$20k per deal, you need to ramp up your marketing spend if you want more deals. 

Something that I wish was shared more is the quality of "leads" that come from each marketing channel. When you hear a company promoting 1-3 cold call leads a day for only $1,000 a month, you're not getting 1-3 motivated sellers a day, you're getting 1-3 people that didn't hang up on the VA. Texting and cold call leads are by far the hardest to convert (none of these lead gen companies will tell you that). Typically the people that do well with that style of marketing are through and through sales pros.

Direct mail isn't quite so bad, and PPC/SEO are typically the easiest to close. 

All that being said, Mike Garry teaches cold call sales and is a good resource for training and whatnot. If you want an introduction let me know. 

Hey Jefferson! 

Hiring a VA can be a huge time saver if trained correctly. Upwork and Fiverr are some of the most common go-to's for finding decent and affordable ones. The only piece of advice I'd say is give them a couple test tasks to see how they work and also to hone your communication skills. Typically a good VA will do exactly what you say... and absolutely nothing more. Loom is also a good tool for you to make a video of how you perform said task so they can reference that.