All Forum Posts by: Scott Nolan

Thank you for your insights, Russell. I do wish a NOVA wholesaler would chime in with their experience.

The numbers I've heard (not from the NOVA/DC area) are 5-10% response rate and 4% of those responses being deals. So I had expected 50-100 calls and from those, 2-4 deals. So far...not so much.

The problem with Every Door is that you're mailing to everyone in the area, not targeting those that might have a motivation to sell at a discount.

So... If I spend $12,000 I have a 50/50 chance of speaking to 30-40 people? And perhaps converting 1 or 2 of those to sales? That doesn't seem like money well spent unless I'm planning to earn $60k or so on each deal.

And I guess my question boils down to: ARE people succeeding with direct mail in Northern Virginia?  I don't really want to have to go to Richmond or Baltimore.

But there are programs that will teach you to make a bunch of money in real estate WITH  a lot of time, effort and money, no? Or else what are we all doing here?

So rather than just run down one program or another, why don't folks point out those that do, in their opinion, seem to offer the right combination of training, inspiration and experience?  For my part, I think that Sean Terry, Justin Williams and Todd Toback have it right. AND you can get their advice for free by listening to their podcasts.

I sent out 1000 direct mail yellow letters to absentee owners in Fairfax County. The response I got was only two phone calls, both highly unmotivated.  Is this typical for the area?

Hello, William. I'm a non-agent wholeseller here in Northern Virginia. I agree with Russell. Better to just get out there and do it. Drive for dollars (like I did today on my lunch hour) or buy a list and mail it. Jump in the deep end, my friend.

That said, someone is using bandit signs to advertise for a real estate investor apprentice. I've seen the signs around the Chantilly Costco and at the intersection of Rte 50 and Centreville Road. You could go there and write down the number.

But seriously an amazing free education awaits online. Learn and then just do it!

What if the houses are more like $500,000 (the median price in my market)?  Or $800,000, like the one I just looked at? Surely a rehabber can make do on less than 30% of that? Surely most of them do?

The house I just looked at comps at about $805,000. I figure it needs about $65,000 in rehab costs. So the 70% rule tells me not to pay more than $498,500, less my profit. If I want, say, $30,000, that's a max offer of $468,500.  But the rehabber is going to be looking at a profit of $241,000 (less buying, selling and carrying costs). That seems like a lot.

Scott

There are so many posts on BP about not using the 70% Rule, but it seems that the advice is directed towards rehabbers, not wholesalers. Do wholesalers stick to the 70% Rule? How religiously?

Hello, Joel:

Trust is gained by experience and reputation. Bring good deals and honest dealings to the market and trust will flow to you.

Buyers care about the deal first. Trust will only come when you consistently deliver.

Yeah. Profit isn't everything. If it is for you... that's sad. 

I would -not- store all the sentimental stuff, either. But human remains? Yeah, man. Those I'd hold onto. How many of those do you find? 

I'll give those a try. Thanks!