AM I WASTING MY TIME!!!!!!!!!!!!!!!!!!

Hello Everyone,

I kind of new to the business and I’m broke.

I need some capitol, so I’m trying to do wholesaling.

My question is when I find a property that is in distress and I mail the owner a letter, do I need to find out any information first?

What I mean is I 'll go down to the courthouse( or online) and find out what they bought it for etc…

But I kind of feel like I’m wasting my time.

If I do the MAO formula, it doesn’t really matter what the owe etc…
Is that correct?

Should I just contact them and make an offer, and don’t worry about the small stuff.

I have bout 30 houses that are vacant, but I have had no luck yet?

Thanks in advance!!!

What does MAO stand for? I apologize but I’m new and still trying to learn the lingo in this forum. Thanks.

MAO stand for Maximum Allowable Offer!

It is a Ron Legrand formula
It is a formula so you can make offers on junkers

70% x ARV(After Repaired Value) - Repairs= MAO

I live in Atlanta it is 68% x ARV-Repairs = MAO.
then you offer 82% of the MAO

I don’t see any reason to make a trip to the courthouse to find out details on what MIGHT be a lead. Keep sending letters to owners who may need to sell and when they call you, figure out what you can offer. If it works out, hooray! If not, on to the next one. Don’t spend your time doing research on property owners that may not even want to sell - you’ll make much better use of your time if you do your homework AFTER you’ve verified that you have a motivated seller on your hands.

Good luck!

Thank You

I figured I would be a waste of time If I couldn’t find the owner!!!

Anybody can send out letters! It is how you send out your letters…
Are you using a “tag-line” as listed below:

“Local Investor Looking To Purchase 100 Properties This Year”

Are you using a P.S. at the bottom of the letter:

P.S.- If time is of the essence, we can close quickly and handle all repairs.

Are you hand-writing your letters in an effort to make them look personalized and get them opened?

When sending out your letters. Make sure you send out a follow-up letter 14 days later to
the same group that you sent your original letters out to. When your phone starts to ring as it
will, tell them you will send the out an offer. When you send them your offer, send it in a
“Justfication Letter” format. What I mean by this, is send your offer with a letter breaking down
the ‘actual’ cost to sell:

-6% realtor fees
-3% Title, escrow, home-warranty, termite, property taxes, etc…
-Rehab cost
-Carrying cost while on market

Make sure you also attach low comps. Homeowners want to know what their houses are
worth. If you can show them some comps, you will be ahead of the game…

One other thing you can do is research their phone numbers on or and call them direct. Then you can wholesale me
some deals!

Best Riches,
Jeff Adam

FMM certified?

Foreclosure Mitigation/ I don’t know is ther such a thing and if there is tell me you didn’t pay huge bucks to become certified?lol:>)