All Forum Posts by: Michael Pruitt

@Billy Davis

I got very low response rates using this approach. It could well have been the letter I used, it was very formal and might've intimidated/turned off prospects. It didn't have a big curiosity factor. I recently spent a few days creating self-made yellow letters that were much more casual and that appeared handwritten; with eye-catching stamps. The yellow letters have gotten a much higher response rate. I can't give you a percentage, but it's notably higher than the self-delivered formal letter method. I'm big on cutting costs and keeping things as inexpensive as possible, and I was able to get 500 letters out for .55 cents a letter using dollar store legal pads and envelopes. My costs would've been a bit higher had I not used connections who allowed me to use their printing facilities. 

It was a total pain to get the letters formatted correctly, took me hours, but it's worth it to get a system in place that's cheaper than the other options out there. I'd imagine it takes much longer without office printing facilities that have printers that spit out 60 letters and envelopes an hour. 

Hey everyone, 

After countless frustrating hours creating self-made yellow letters, I've successfully completed my first self-managed direct mailing campaign targeting tax delinquent absentee owners. I'm very pleased to share that I've gotten a significant response. I've noticed a bit of a trend however, probably because of the area I targeted, a lot of these owners have very low equity in their properties. Here's a good example: 

Owner owes $120,000.00 

ARV is $150,000.00

Property has tenant, monthly revenue from property yet to be reported, but is apparently reliable. 

Property condition is good, with minimal need for repair (to date.) 

My sense is this property, with closing costs and my fee leaves little room for sparkle to attract buyers. So I'm looking at what this deal could look like as a Sub2 deal.

I've never done it before, but I understand it's possible to wholesale a deal structured as a Sub2, and I'm wondering how that's done; using this example above, or any other.

I'd appreciate any helpful insight! Thanks in advance. 

@Claire Trammell

Thanks for the word of caution, it is illegal in fact. I'm actually slipping the letters on to screen doors and gates, which, from my understanding, is legal; at least locally.  

I'm doing a direct mail campaign at the moment, I'm targeting around 1000 absentee, tax delinquent properties. I regrettably don't have the spare money for postage; so I'm hand delivering most of the local letters to the public mailing addresses of the property owners. The letters are professionally styled, with formal letterhead and hand signed. I haven't heard a lot about professional letters, I'd be interested to learn what success, or lack thereof, campaigns of this type have had. 

@Steve Haight

Thanks for your input. Interesting to learn about your success with land deals. Do you generally target contracts in developed areas?

@Assaf Furman

Thanks for your input. When talking about what's not written into a contract, have their been specific additions you have retrospectively wished you'd added in hindsight? 

Hey all, 

I'm wondering what some risks are that some wholesalers have encountered specifically related to their contracts? Have any wholesalers faced consequences due to missing clauses that they should've included retrospectively? What are general risks when putting a property under contract, legally and otherwise?

I personally use Agentpro247, my understanding though, is that Listsource and Agentpro source their data from the same public records. Agentpro does have a feature that allows you to verify how recent the data is, which is useful. They offer a free trial as well. Worth checking out. I chose it simply because it's a little more user-friendly, and cost effective, depending on the amount of lists you're pulling.  

@Terry Evans 

I appreciate the guidance. Out of curiosity, did you at any point treat wholesaling land as a niche to concentrate your wholesaling operation around? Or was the land deal incidental? 

Hey all!

I'm literally just starting to approach owners of potential properties this week for the first time as a wholesaler. I've noticed that a lot of these properties are probably going to need to be bulldozed. I've also come across a number of vacant lots in the middle of various (largely) developed neighborhoods. I'm wondering if wholesaling land deals is particularly common, and if so, if there are any notable distinctions between wholesaling land and wholesaling a traditional residential or commercial property? 

Thanks for the insight. This website never fails to impress and inspire me.