All Forum Posts by: Sharon Vornholt

Adura,

I get the probate info straight out of the newspaper in our city, and the executor's name is listed. I even mail to attorneys if they happen to be the person listed.

The person that normally contacts me is the executor/administrator and this is usually a family member. One of the first things I want to know is, "are you the executor"? If they are not the ones calling, then you need to know why. I have had cases where the actual executor is elderly and a son or daughter will be calling for them. I want to extablish right up front who I am talking to because you don't want to waste a lot of time talking to someone that doesn't have to ability to sell the house.

I take all the property information on the house, and I usually try to look up the house on the PVA (to see what the house actually looks like) when I am talking to the seller.

When we first enter these houses into our database from the newspaper, we look up the house on the PVA at that time to note the tax value and any other details that we think we might need. When someone calls me, I pull the house up in my database and look at the information that we have already gathered. The second time I look it up on the PVA, is just so that I can see what it actually looks like as I am talking to the caller.

I will try to determine if I have a motivated seller. If the answer is yes or even maybe (sometimes), then I will make an appointment to see the house.

I write up a "cash offer" even though I will be flipping it to another investor to rehab as that person will be paying me cash. As for what I offer, my starting point is the same for all houses. 70% of the ARV (after repaired value) less repairs, less what I want to make. That is my offer. I will typically be looking at buying houses that are either "distressed properties" or properties that are really "ugly" and haven't been updated in decades. If the house is in good condition then they are going to sell it retail, and I am the first person to tell them that I am not their best option. I let them know they should list it.

I hope this helps.

Sharon

I buy houses as a rule every month from my direct mail campaigns to absentee owners. The one I bought after 2 1/2 half years, was just an example of the power of not giving up on direct mail. I expect to make a nice profit on this house when I flip it. It is indeed not as common to buy a house after this much time, but it does happen. Things change for absentee owners over time that makes them "motivated sellers". It is pretty common for me to buy a house after I have been mailing to them for a year or longer. But, I have also bought houses after only a couple of mailings. It's just a numbers game.

Statistically, your percentages will go up after the frist 4-5 mailings. Vena Jones Cox "The Wholesale Queen" has this pretty well broken down in some of her courses. She too has been doing direct mail for years to build her real estate business.

I always look at how much I spend verses how much I am making. I can tell you for sure, for every $1000 or so I spend on postage, I am making $7000-$10,000 minimum profit. So for me, it is definitely worth it. It does work for real estate if you have a targeted list and it works very well.

Another important thing to remember is that you need more than one strategy. Different real estate investors use a combination of different strategies. You need to do what you like and what works for you. Personally, I would rather jump off a tall building than call expired listings or FISBO'S to find a deal. But again, that is just me. I know folks that do those things and like cold calling just fine.

Realtyman -

Yes, I am one of those people keeping them in business, but only because it is still the best way to generate high quaility, very targeted leads for my business.

Hi Adura -

I do not use handwritten letters for probates. I use a professional computer generated letter on white paper with their name, property info etc. inserted into the letter. I want to project an image of a professional company that can help them in this most difficult time.

I always start out the letter by offering my condolences and acknowledging that I understand this is a difficult time for them. I let them know how I can help when the time comes that they may be interested in selling the property.

I have great results with probates. Like the other campaigns, I keep this one going for a while.

Mike - Lists are a funny thing.

Some folks that bought long ago have re- mortgaged their homes and have no equity, while folks that have purchased more recently have little or no mortgage. There really is no way to know simply by the date of purchase.

It's certainly a process to keep a good list that's for sure.

The list I get from the PVA does not have that information. My list has several thousand names, so it would be virtually impossible to look each one of those up.

I am getting ready to try a different list that will let you include or eliminate certain groups of people (such as ones with little or no equity). I hope to get my first mailing through them out in a couple of weeks. Even though it will cost me more per letter sent than doing it all myself, I think I will come out ahead because I will have a more targeted list.

I will let you know after I have more details. In the mean time, I would just mail all of the names you have. They key to absentee owners, is to never stop mailing them. If you do that you will have be way ahead of most investors.

Thanks Jackie.

Persistence really pays off in this business. I buy houses regularly from my direct mail campaigns, but this is a first for me - buying a house after this much time has lapsed.

I believe there is great value in presenting yourself as a real estate investor that has a real "business". They have more confidence working with you if they view you this way.

Thanks Mark!

Sharon Vornholt

Don't Give Up On Your "Marketing Machine"

I think you will have to look long and hard to find a real estate investor that hasn’t felt like throwing in the towel at one time or another (if they were to be completely honest).

We all have periods of “highs†and “lowsâ€. But, it is vital to get over the “lows†pretty quickly if you are going to succeed as a real estate investor.

To quote Darren Hardy at Success Magazine, “You need to learn to have a faster “nervous breakdown†when you are facing a big problem or simply find yourself up against a “rough patch†in your real estate investing business. Think about it, worry about it (for a couple of hours – not days or weeks), and move on.

I have been doing direct mail marketing in my real estate investing business for a little less than 3 years. It gets pretty tempting to want to give up on this process when you are not seeing the results you would like. But I can tell you from experience that is the last thought that should cross your mind.

I bought a house this week from an absentee owner that I have been marketing to for over 2 ½ years! Yes, that’s right. 2 ½ years! I recognized her name when she contacted me, but I didn’t realize exactly how long I had been marketing to her until I checked my data base. I was so excited to know that my long time marketing plan worked exactly like it should have.

Folks, keep those direct mail letters going out! You never know when todays' "un-motivated seller" will suddenly become a “very motivated sellerâ€.

If you want more tips and information on marketing for real estate investors you can find it on my blog at [LINK REMOVD]

Hi Mike-

I have been using direct mail campaigns for about 20 years. I owned an operated a successful home inspection company for 17 years before becoming a full time real estate investor 3 years ago. I have been investing in real estate for a total of about 12 years.

Absentee owners and probates are my primary areas of focus with my direct mail campaigns. I update my absentee owner list once or twice a year and probate leads are published in my local paper at the same time each month. I have great luck with probates so you might want to give this a try.

I can tell you from experience, that your results will only go up with an ongoing direct mail campaign. The absentee owner that doesn't want to sell today, may become a very motivated seller in the future. It is estimated that 80% of your results will come after about the 4th or 5th mailing (to the same folks). So there isn't a time that you "quit" mailing to them where absentee owners are concerned.

It is not at all unusual for me to buy a house after marketing to someone for a year or more.

In fact, I just put a house under contract this week from one of those absentee owners that I have been mailing to for 2 1/2 years. I knew I recognized her name, but it was only after I checked my database that I knew the exact date I first began mailing to her.

You might ask, why would she call after all this time? The answer is very simple. She wasn't motivated at that time.

This lady lives in California and the house is in my area, Louisville, KY. She originally purchased the house in 1998 for her brother to live in. He has since passed away. She decided to rent the house and the tenant eventually moved out after trashing the house. She then became a very motivated seller!!

The only time I take anyone off my list is if I buy the house or they request to be taken off.

I made the mistake early on of taking folks off my list when they insisted they needed more out of the house than I was willing to pay. In hindsight, they just weren't motivated AT THAT TIME.You can see what I mean.

I mail my letters about every 2 months on a continuous basis. I have my list broken in half so that I mail about half the list each month. I hope this helps.

I have other articles on direct mail marketing as well as marketing in general on my blog if you are interested. You can find it at:

[LINK REMOVED]

Sharon Vornholt