All Forum Posts by: Jason Morrow

Good reply. Good statistics. That was something I had thought about; whether it was better to repeat the same postcard so they recognize it immediately or send variable pieces. I have noticed many people say they get more angry calls from the yellow letters than they thought they would. I mention it because it means they honestly believed it was hand written. I was thinking that would make them good for referral leads and "driving for dollar" leads rather than for mass mailings. Thanks

I am also curious what people use in the north east Houston area. I got an RS Means cost book which has a good bit of info and was much cheaper than Marshall Swift. I just don't like that digital version uses DRM so it can only be used in adobe digital editions which is garbage. Otherwise when used on my laptop it is helpful I just have not had an opportunity to verify its accuracy yet. I would buy the actual book next time. They use regional multipliers for whatever area you are in and I can't imagine it to be "accurate" but better than just guessing. I also considered the "craftsman guides" which are DRM free and work well on mobile devices since they are just PDF.

Good reply thanks for it. I was just looking for a good way to find a local probate list and work on that next. Sounds like that's where your having the best luck in terms of leads. I have enough resources to purchase and rehab two properties then the plan was to wholesale whatever leads I convert while I am unable to take them on myself. It's kind of the exit strategy for those deals. It made sense because if you are going to keep marketing while rehabbing and supposedly it snowballs then you will need a way to make something off of those leads. I figured it was that or telling them "I'd love to buy your house just wait a few months" obviously wasting marketing time and resources.

Thanks. If that's the most people do then for a first campaign 1000 in a month doesn't sound too small of a sample.

Finally. After a few months of studying for and getting my Real Estate license and countless hours setting up business entities, bank accounts, and the 1 million other things a new business needs I got to actually do some work! I just sent out my first batch of postcards today and they should hit roughly the end of the week. I can't even begin to think of how many different posts, blogs, tips, and any other piece of info I could find in regards to how to begin marketing. I decided on:

A targeted list that after address verification totaled 998 addresses which was perfect because I wanted a sample size of 1,000 but the list was 1,225. I made a very nice post card that I feel will at least get a quick enough glance to catch the name before being thrown away the first time and will be easily remembered the second time and on. I mailed 500 out this week and have the remaining 498 going out in two weeks. 

If you ask 10 people how many responses you could expect from a campaign you will get 10 answers and they will all be different and at least 9 will be wrong. My goal is only a 5% rate of calls and converting just 1 deal from those 50 calls. 

Is that a realistic expectation (my individual ability to close deals aside)?

What kind of response rates have other been seeing, and do you actually get a solid enough stream of leads to maintain throughout the year?

What kind of "buildup" or snowball effect of constant marketing have you seen? A slow ramp up or did it build quickly?

Finally how many leads is "enough"? Is only 1,000 the bare minimum? I have seen others using 6,000.

Thanks for the input. Now nothing to do now but just wait for the phone to ring.

I was in the Mortgage business during the 2008 collapse and I don't feel the current lending climate relates at all. Likes others mentioned the old loose programs are "offered" but so are $5k Ford F-150 Trucks until you show up. Even the sub prime criteria is more like what "Alt-a" quality was back then, no more 580 FICO 100% financing with stated income and assets. No massive Fannie and Freddie problems (that we know of) looming like back then. Lending was so loose here the FBI came in and closed down half of the Houston area brokers and had a massive haul for fraud. I don't see that going on as much. NINA loans are totally gone from what I can see and even NIVA loans are scarce compared to back then. I am sure plenty of people know more about market data but from the "feel" of the lending market I think that it won't contribute (as much as '08) to a crash if it comes.

I am well into reading E Myth now and like many others it recommends developing a "Brand" for a company to create the value rather than in the product itself. Because of the separation most of us will have due to not selling them ourselves but rather through a local Realtor who is an essential member of your team, I wanted other thoughts on this as it relates to Real Estate. I know the Author has a volume dedicated to Real Estate but it has many negative reviews as an upset tool, so if anyone has an opinion on that please jump in. I understand the idea as it is presented but how have others found that to work with a company that only flips or rehabs properties? The goal is to later own rental properties where I can see an easier integration of a brand. If the company manages their own properties they are the "face" of the company and would have to operate with the utmost professionalism (which I feel would be the hardest part of finding a 3rd party manager). The only interaction in the rehab phase of growth however only comes with the buyers personal feelings towards the rehab itself regarding quality, colors, updates, etc... In that sense then the brand only comes from a consistent presence of those qualities that the Realtors locally eventually associate with your company and relay those experiences to their prospective buyers. I have been in sales my whole life and I fully understand that the best possible business comes from "repeat and referral" business so that seems to be what is gained by the "branding" approach at this point. Is there more I could do earlier on to increase that branding presence? Or am I correct that at this point focusing on the quality (and I do not in any way mean spending more than is needed) to guarantee when a Realtor recognizes the seller they immediately move it to the top of their list? On the other side of that is of course being totally professional in any interactions with the local Realtors, Title companies, Contractors, and essentially anyone you meet for the rest of your life since you are now the "face" of your own company. Beyond that is there anything that the more accomplished members know of? In other words it seems the brand in Real Estate in most ways regards the local Professionals whom you will rely on for your success not entirely on the buyer like for example a clothing store or car dealership would. Thanks for the help.

One of the podcasts had a great tip to have a wholesaler you work with and turn them loose on finding that kind of info, that's what they do for a living.

I am 37 years old and live in Humble, Tx. I have a strong background in aspects related to Real Estate investing and joined to grow in the areas I do not yet understand. I listened to Brandon Turner's book on Income Properties which led me to the forum. I have gone back to the beginning and started catching up on the Podcast which is an excellent source for those who have not gone back to episode one and listened to the relevant episodes from there on. J Scott and Frank Gallinelli's interviews were excellent and if Amazon ever gets their books back in stock I will read them. Fortunately everyone who seems to know what they are talking about recommended reading "E" Myth (Revisited) which I am in the middle of. That book should be sent out by the State immediately upon receiving a new small business application and an exam should be administered before the business is approved. Understanding the various personalities will be invaluable as a foundation. I am working on my Real Estate license to facilitate finding properties. There is a reason everyone recommends this an initial step. I have watched deal after deal blow by while waiting for info from a Realtor. Had I been able to access the property immediately and been able to run comps then submit the offer the same day there was money to be made, and unfortunately it will be someone else for now. I currently work for my parents Manufacturing company as the CFO but given my background I plan on Real Estate Income properties being my path forward. Thanks in advance for any good advice I am sure is coming in the future.