All Forum Posts by: Yoann Dorat

@Jerryll Noorden Dude your logic is so wrong, I read your first comment and your advice to @Javaughn Harkness is to basically blindly target the moon without having any clue on how to pay for the marketing, what a smart thing to say! this is because of this kind of motivational guru bullsh*t that so many people fail in this business. Without any budget, and keeping track of your KPI's you're going right off the cliff. 

Now for the mailers, I've been in this business long enough to have tried many strategies and I have a pretty good idea of what's working or not. Several touches on a prospect over a long period of time is the only way to get a good conversion rate, doesn't matter if we're talking text blast, cold calling, or mailers, it takes several attempts to reach someone. Your first mailer? there's a very big chance it ended up in the garbage. It's all about timing and being in front of the seller's eyes when he's ready to sell, and this might take a while. 
I also happen to receive calls from people who received my postcard 4 years ago and kept it on his fridge but it's a unicorn, and I base my marketing on predictable results, not luck. 

Now I'm not some kind of genius and I'm not trying to reinvent the wheels, people have done this business for decades, the blueprint is out there you just have to follow it. And any veteran in this industry will tell you that consistency in any form of marketing is the only way to succeed. PERIOD!

But some people here on BP might have a different agenda

@Joaquin Garuz I'm up north in Boca and I've been watching the trends between West palm and homestead since 2015, the numbers just don't make any sense, everybody is blindly betting on appreciation and I'm waiting to see how it all plays out during a downturn. 

I receive at least 1 call per week from local investors looking to invest in Multifamily in Soflo, everybody is hunting. 

I'm personally investing in the Midwest, MI, and OH where we can still find some good cash-flowing class B assets, and I'm targeting a steady cash flow more than appreciation so it's been a good journey so far. 

Good luck

@Caden Wakim You've been emailing? 99% of emails provided by skip tracing companies are wrong, and the residual 1% end up in the spam folder. Keep calling and texting. 

Regarding the list, you should stack them by distress indicators to get a better hit rate. Or you can build your own house by driving for dollars. there is competition everywhere, fortunately, most people are not consistent enough. Keep calling, sharpen your skills and it'll pay off over time.

@Javaughn Harkness the # of mailers doesn't matter, what matters is consistency. You need to send mailers to the same list every 30 days for 6 to 12 months to start to get some traction, so start with a small list (stack the distressed indicators or build a driving for dollars list) and grow it over time. So take your marketing budget, divide it by 6 or 12. take an average cost of $0.50 per postcard and you'll obtain your max list size. 

Hi @Elsa Long correct most wholesalers limit themselves to cash buyers or Private money/Hard money because of the short period of contingency period they have to move the property. 

You can use HM/PM and refinance down the road with a conventional loan. PM lenders will probably ask for a track record so you'll probably need to go with Hard money even though it's more expensive. 

You can look into the national firms online like lending home, lima one etc. 

@Lydia Woods, I know people who tried this before in Detroit, they all end up selling at a loss a few years later for 3 reasons. 
1. The city doesn't want those eyesores anymore, so they will bury you under blight tickets. You could declare it has vacant but you will be required to secure all windows and doors, install floodlights and maintain the landscaping on a regular basis.

2. The holding cost, even though it's vacant it's still costing you money every month, you have to keep it clean (#1), pay the property tax, insurance (pretty big risk it gets burned down), even if you make X3 in 20 years by then you'll probably have spent the same amount in holding cost. 

3. It's a pretty big city, Built for 2M people and now down to 637k some neighborhoods are coming back, some never will. $3000 to $10000 houses are probably in the part that never will, but maybe it will it's a gamble. 

I personally look for solid/steady cash flow instead of gambling on appreciation so my advice would be to look into a better neighborhood and buy a stabilized asset. 

Good luck,

@Louis Goerg BP is not the best place to get advice on wholesaling, If you have questions feel free to send me a DM and I'll do my best to help you out. 

Do not overthink it, you can wholesale houses without being licensed in Michigan as long as you have the proper disclosures in your advertising. I know several guys actively wholesaling in Michigan and I never heard of anyone getting in trouble but I guess it could eventually happen if you cross a line. 

With more and more people getting into wholesaling (thanks to gurus) the states are going to start to enforce/change their regulations, hence why I asked everybody within my company to get licensed in all of our markets last year if the rules ever all of sudden, we're prepared. 

So not mandatory but I strongly suggest you get licensed if you planned on staying in this business for a while

Hey @Frank Procopio if you're out of state you should stay clear from the class C areas in Detroit. You'd be better off focusing on a solid class B in the suburbs or a few "pockets" within the city. 

Class C only works when you're local and self-manage. 

@Dwayne Gilbert using conventional funding on a wholesale deal is tough, there are too many variable to make your deal fall apart.
Why don't you have your buyers use a Hard money loan or a bridge loan for 12-24 months and refinance with conventional funding later on? 

@Monia S. Most sophisticated investors use an LLC when they acquire assets to protect themselves against any liabilities.