Congrats on taking action and trying to flip some contracts... most humans desire great things in life but lack the ability to believe in themselves and take the need action to achieve this success.
RE Investing/Wholsaling is a numbers game and you'll need to contact as many prospective sellers as possible to be successful. RE Investing is a marketing and networking game. The most successful investors have mastered (or outsourced) these skills.
Many wholesalers use direct mail as their main advertising outlet. The key is to have a good list of motivated sellers and to try to not send to sellers that are not on a mass marketed list. You want the seller to think that you are the only investor interested in their property.
You should read about "the yellow letter" as it has proven to get a good open and response rate.
Driving for dollars is a great way to build up a solid (private) list of potential sellers but you never know the sellers motivation just by driving by... not all ugly houses want to sale and not every home owner with a nice home is in a great financial situation. "You can't judge a book by its cover..."
I personally hate driving for dollars and am working on other ways to create a good sellers list.
Once you get a solid mailing list, you'll need to hit these sellers multiple times with different variations of marketing... a yellow letter one week, a post card the next, and maybe a door hanger next. Again, this is a numbers game and you'll want to be consistent in your marketing efforts. Build goals, make a system, and stick to it!
Have you looked into bandit signs? I believe bandit signs are a great way for a new wholesaler to get things going... you need your phone to ring and these signs will do just that. Do some research in your area before you go out nailing and posting signs everywhere (it may be illegal in your area). The great thing about bandit signs is that potential buyers may also call you and you'll need a solid buyers list to assign your properties.
Another great marketing tool is the internet and pay-per-click/landing page advertising. This is very cost effective but you need to understand sellers and the internet to get good conversion rates and a low click price.
Have you looked through the "Marketing" forum here on BP?
http://www.biggerpockets.com/forums/87-real-estate-investor-marketing
There is a ton of great info there.
Do you know what investors in your market are willing to pay for RE Investments? I know that investors in the DFW area are willing to pay 70% to 72% of ARV minus the cost of repairs (depending on the area) and therefore I must buy deeper than that. The highest I'm willing to pay is 65% but I start much lower when negotiating a deal.
You also may want to check out the "Starting Out" forum on BP.
http://www.biggerpockets.com/forums/12-starting-out
Don't forget about a solid follow-up system to stay in contact with sellers. Peoples situations change rather quickly and a non-responsive seller may be very motivated to sale tomorrow.
Read, learn, ask questions, work, grind, market, make lots of low but fair offers, follow up, and you should turn a profit in this business.
Good luck!
Stinson Bland
HomeVestors - Lifeline Properties
