Hello Everyone,
Hope you all are doing well.
Eman82,
I am currently sending 4000 pieces per month. As far as advice, I wish I could tell you. For me I am costantly changing my letters/cards to see what works and what doesn’t work. Evertything is test, test, and test again. Learn by doing pretty much.
spacechimp,
I feel your pain! It is very tough. That’s why I believe you have to make as many offers as you can. It’s a hit an miss thing. I myself think the banks are living in another world. They are just trying to get as much as they can. Give them a bit more time. They are hurting and I believe they will hurt even more so. Just keep making offers!!
REI NOOBSTER,
I am currently sending 4000 pieces a month. My expenses are about 4K per month but that is not all on mail. It’s my total costs to run the biz.
Roger J,
My mailings are getting about a 2-5% response rate. I know this seems high, but out of 4000 pieces I am getting about 90-130 calls and getting about 2-3 deals out of that. I would agree about hiring someone at 7-8 dollars and let them call on FSBO’s, expired listings, etc. I am very much planning on implemting a few approaches such as this. My markets are very targeted. I have doing phone sales for 5 yrs and realize that it’s a numbers game. Until I start to implement other ways, I will have to continue to do mailing campaigns. Nevertheless, I am going to put a plan in place to ween myself of the phone. Thanks for your input.
Do you do mostly assignments of contract?
Yes, I only do assignments.
That’s great. I’m in a higher priced market and deals have been tougher to come by, but the profit potential can be higher. Sounds like you are doing well…great to hear that!
Do you live in the areas where you are wholesaling?
Where are you located at?
I do all my wholesaling long distance. I target 2 markets, one is 500 miles away and the other is 1500 miles away. I don’t really know much about the homes in the areas other than what I have studied demographically and geographically. I never see the homes in person or even meet the seller’s and buyers. I am just learning everything that I can and letting experience be my greatest teacher.
I am in NY. I wouldn’t feel comfortable doing repair estimates long distance. How do you do that? Just estimate them and come in way under what they might be?
I hate placing a dollar amount on rehab work (ie 5K, 10K). Whoever decided to do that, I think hurts everyone in many ways. After wholesaling for 9 months. One of the most important things to remember and what I have learned from my buyers is so:
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what costs one buyer a kitchen, bathroom, paint and carpet 15K might cost another buyer 8k. The reason being is that some of my rehabbers do all the work themselves so they don’t have to hire labor. I have one buyer that the Father, Mother, and Son do everything. So you have a 3 man crew and no one to pay. All the money stays in the family. I have another rehabber that she has to hire everyone. So her costs are a lot more. She bid 55K on a house I was selling for 67500. I didn’t even get the house at that price but my family rehabber that I mentioned paid me 67500. She later inquired about the home and I told her that I sold it at that price. She told me that she couldn’t pay that then later told me she regrets not buying it. So this was a classic example.
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what some rehabbers want to do with the home other’s don’t. Some don’t want to change the kitchen but only rebuff and paint it.
So the bottom line…
Never place a dollar amount, always get pictures of the entire house, and let the pictures tell your customers what needs to be done. As far as my pricing to wholesale it, I ask myself what is the worst that the most agressive rehabber would pay? 20K? Then I go off that price. So in the end, I am offering some of the sweetest and best deals with plenty of meat left on the bone!
Excellent point. I may be new to wholesaling but your explanation of repair values was very logical. I guess I wouldn’t have thought about it like that.
Makes sense though.
Thanks mawrain! Welcome to the biz and kick @#$!!
Make excuses or make money!!!
That’s awesome, you are killing it already!
I’d start doing some google advertizing if I were you