All Forum Posts by: Sam M.

Congrats!! I hope you have more in 2016! I'm an engineer too but currently I work in marketing. 

Sam 

I just remembered - I met this couple when I was at the auction ... they were looking at it as an investment and they had a real estate agent with them. Not sure why someone would use an agent at an auction especially if they are an investor. But it appeared that several people had agents. Anyways, about 3 minutes before the auction started the husband of the couple said to the agent "we should talk about what our max bid is before it starts". It seems like an absurd time to bring up the topic. It's crazy to me that they had not discussed it before. I asked them what they thought the property was worth and I asked the agent if she pulled comps. They all looked at me with confused looks on their faces. They had no idea! I bet the agent knew - she was just hoping they would pull the trigger at any price so she could get her commission. Either that or she was just as clueless as the couple. I think that's sad for the couple... they need someone to help them make good decisions. Who is at fault in that situation, the unscrupulous real estate agent or the naive "investor"? 

I went to an auction today in Pomona, California. The address is 2034 Nichols St, Pomona, CA 91768. I was very surprised because it sold for $335K. I think it needs about $40K in rehab (it was really messed up). And I think the ARV is possibly $400K. So it definitely sold too close to retail. I think it would have made sense at a price no more than $250K. The reason it sold so high was that there were too many people their bidding but it didn't appear that anyone was there to live in the house - these were all investors of some sort. Just thought I would share. Any comments?

Great topic!

Thought exercise... Using $40 per lead - let's compare to direct mail. This would equate to getting 200 leads on a $8,000 mail campaign. Seems doable. Assuming $0.80 per piece (include postage and list cost), $8,000 would buy 10,000 mail pieces (of course the cost totally depends on the type of mailer, ie small postcards are cheaper but have a lower response rate). The 200 leads would equate to a 2% response rate. That would be very achievable. I have heard of 4% and higher response rates (reading on BP) but again it depends on the type of mail piece (postcard or letter, etc) and how crowded the market is. It seems like you could generate leads for less than $40 each if you are talking about a national average.

The quality of an Internet lead could be better than direct mail leads because the seller is searching for the specific service versus direct mail which is unsolicited. Does that justify the $40? Will the close rate be higher versus direct mail?

A motivated seller on the Internet can find a plethora of cash buyers very quickly. Therefore Internet leads require a rapid response - within minutes or hours - would you guys agree? A day-old list could have less value. The firm that is processing Internet leads from Bruce must have a robust and rapid call system to qualify the leads, yes? And they must have a trained person to talk to and negotiate with motivated sellers. 

I would really like to read more about how it works out, especially in California. Specifically, how many contracts do they close from the 200 leads?

Mathew, 

Welcome to the site. I work in the Inland Empire too. Maybe I'll see you around at the real estate club meetings. 

Sam

Dear @Cornelius Charles, when you send direct mail out, is it a postcard? Where do you go to have it printed? Do you use a mail house? If you have a budget of $500 per mo, and you are sending let's say 1000 per month, it seems inexpensive so I was just wondering about the details. I am enjoying your post-  thanks, Sam

I hope this is on-topic still... I am an in-state absentee owner in SO Cal... I own properties in Ontario and Riverside that have around 30-40% equity and I do not receive yellow letters or postcards. Well I did get one from Homevestors recently, but only one. Don't bother sending me anything because I am not selling... but I think it's weird. 

Dear BP members, 

I spoke with a potential seller today who has physical possession of his son's house. His son and son's wife are on title. Both son and wife have passed. No will or living trust. The son has two kids who are willing to cooperate. The son's wife has family too. The son had been trying and had success in getting the house in his name before he passed (maybe). He has a pile of court papers but doesn't know what they are or what they mean. 

I need help but with this - maybe I could partner with someone local who is an expert in probates? Local means Inland Empire. 

Zillow $450
Mortgage: $0
Back Taxes: $13K
Seller: Motivated
Situation: Messy

Your comments are appreciated. 

Sam

There is equity in the house and I can pay cash if I need to so this wouldn't be a short sale. I think I can just pay off the mortgage (or even better pay the back-payments and buy it sub-to?). 

I thought that since it's going to auction then the bank owns it, not the seller - that was was gave me pause... but it sounds like maybe I have a chance. I will try to get it under contract today. If I can get it under contract for the right price what would be my next step? 

I have a super-motivated seller but he says the house is in foreclose. I asked if he got a Notice of Default or Trustee Sale and he said yes. It's listed on Auction.com; that means the bank took possession so he can no longer sell the house right? So this is a dead lead I assume. Please advise. 

Thanks, Sam