Door knocking

I’m in Chicago and from what I have read from this site and heard from others door knocking is the most challenging way to get leads…I’ve yet to complete a short sale but I’ve mailed out about 300 postcards a month for the last 4 months and I have about a 1.5-2% call back rate…I target pre-foreclosures and I’ve gotten some decent deals that I have either assigned over to an investor or found referrals for my L/O a generating a referral fee that way. If you have the free time to door knock, I don’t think it could hurt you…i mean worse case they blow you off, it’s not like they are going to report you to any authorities for knocking at their door…But if you spend that same amount of time doing mailing campaigns and bandit signs, I think you will have a higher success rate… The easiest people to COMPLETE deals with are usually the same people who have already made it up in their mind that they were going to dial your number. Please keep us posted on the door knocking campaign. Thanks

Luxx

Luxx,

What percentage do you charge to outside investors when they purchase a property through you? Do you or anyone else know what a standard rate is for these transactions?

Thanks,

Deal Time, I think it varies from person to person and it depends on the level of sophistication of the people involved in the deal… Up until the start of 2006 months my niche had been rehabs. in those I can generate a really strong profit per deal b/c I understand the market and the value I bring in my rehabs…On the short sale side and assignment I’m still a novice…I’ve done a handfull of assignement deals and zero short sales. I’ve gotten between 2-3k from them but it literally just was a response to a mailer I sent out. The time to drive to the property and get the contract signed so it’s been worth it. In some cases I’ve assigned the contract over to someone else, only to have to return their money b/c the deal didn’t close. I would say look for as much as possible per deal obviously but I think 5k a deal, could be the sweet spot that gives you a good profit + makes it still an attractive deal for the investor…and I would think the more deals each person does the higher the assignment fee on average…

.02

Luxx