How did I mess up my second mailing campaign?

Bird Dogs, Wholesaling
21

It’s hard to justify the expense of ongoing marketing when you haven’t turned a buck on anything you’ve done to date… BUT once you have, you reinvest those profits into marketing for at least four reasons… (and more)

  1. To catch ripened fruit as it drops (not to ripen the fruit).
  2. To become the only person sellers think to call. (Branding)
  3. To remain in the minds of sellers. (Consistency breeds familiarity and credibility)
  4. To attract referral business. (This builds on itself)

At this point, you do what you can do, and call it a day. No matter, this is a numbers game, and the more you play the numbers, the more times you win. The issue is knowing how to shuffle and deal the cards. This has been a steep learning curve for you, since you insist on dealing the cards with your toes, and shuffling them with your teeth.

22

Gotten 2 calls. Everyone wants FMV or better.

This business makes no sense. Why would anyone sell their house for so little?

23

You’re right it doesn’t work…

I signed up a five house deal this week for $185K. FMV is around $300K, they need little work and are all rented by long term tenants. I’ve already got buyers for three of them, just need to find buyers for the other two… should make around $20K on this deal.

If I could find private money, I’d buy them and owner finance them at 110% market value with large down payments.

24

Why are your people giving you such good deals?

Mine all want FMV or better.

25

Because I sent mine using the techniques suggested in this thread, which means my response rates are higher. Essentially the pond I’m fishing in is larger because more people are seeing and paying attention to my marketing.

Also, when I was new I did zero prescreening over the phone, at the suggestion of my mentor. When people called I simply set the appointment and went. You learn many things when you do this. People lie, people say some things on the phone that they wouldn’t in person, it’s hard to negotiate over the phone, etc etc. Putting in the work in the beginning is necessary.

26

So what should I do? I currently just ask over the phone and don’t even see the house.

I DON’T WANT TO SPEND MY WHOLE LIFE DRIVING TO SEE HOUSES.

I WOULD RATHER KILL MYSELF.

27

It sounds like you plan on mailing 1000 letters per month, that’s a good plan. I personally would send letters in hand written font, with a plain white #10 envelope with the same hand written font. And don’t lick the envelope, just tuck the flap. People have told me this alone has caused their curiousity to open it. I would send 250 a week and cycle through the list every couple months.

If it were me, I’d use the initial call to gather some basic information then schedule the appointment. Go see every house, make an offer on every one. Know what you’re going to say before going on the appointment. Say the same things every time.

It’s kind of like being a master tradesman. Nobody shows up day one with all that knowledge. They start as an apprentice doing all the B work for the journeyman. That’s where you’re at right now, you’re at the B work phase. If you’re not willing to do it stop right now.

If you are, take the advice given and use it. Don’t deviate from it, until you’ve done a ton of deals and developed your own systems…

That’s the last question of yours I’m going to answer. You’ve been given the knowledge, now go forth and prosper.

28

I’ll do the A work for a month, tops.

It’s not worth it to me.

I’d rather commit suicide than spend my life doing that.

29

Yeah, I would quit, too if I had to reinvent the wheel every time I woke up to real estate investing, and could do nothing consistently.

I don’t think real estate investing is for you. You hate everything involved with it, and have said as much. You’re bored by routine, and you would rather kill yourself than do the basics involved in this business. I understand.

So, just find something different that you love, and stop pounding your head on the pavement.

That said, I don’t like busy work either. It’s boring. So, I automate as much as possible. For example, I won’t fold and stuff letters, lick envelopes, or apply labels in bulk myself …ever. Instead I focus on delegating those tasks, and sending the right message to my market, and not focus as much on the medium.

As a result, I love postcards. They get read. Letters don’t.

I’m not saying don’t send letters. I’m just saying I don’t send them out in bulk, and I don’t send them to homeowners. I only send letters to commercial and multi-family investors. And twenty-five letters is my limit per day.

Meantime, I automate at least the following:

  • Sending incoming sellers to live phone.
  • Sending incoming buyers to voice mail.
  • Sending the same 3x5 DM piece every 4-6 weeks through a mailing service.
  • Sending to the same list over and over.
  • Using 1-page escrow instruction.
  • Relying on a scripted presentation to disqualify suspects, so I waste as little time with losers as possible.
  • Only make in-person offers, when/if all the decision makers agree to show up.

Making offers should become routine, when you stick with a script. This way you say the same things, in the same way, and in the same order to every suspect.

However, this is all too difficult and boring for some, and they need to quit and do something easier and less sophisticated.

30

Well I just need to automate going to view houses. I don’t even mind taking the calls, that’s at least optimistic that this is going to work.

31

I’ve been trying to help redstar for over a year, the endless questions, seeing all the dif directions he goes. it’s an exercise is futility. Now he’s talking suicide rather than putting out the effort needed to become successful. How long shud we put up with these endless rants and questions and not listening to our advice & mood swings?
Let’s get him back on his meds and then stop giving advice that he will never follow.
I’ll be in my cave tanning bear hide and putting up xmas light.

32

Do you use the Zestimate?

33

This is the last time I will answer this question. I DO CHECK ZILLOW, BUT ITS OFTEN SO INACCURATE. I’m familiar with the neighborhoods that I like to wholesale in. I know that a 2/1 in good condition is worth 80K. I know a 3/2 is worth 120K
If the 2/1 is toast and needs a total rehab I will start at 50% and try to get it at 30K I will try to get the 3/2 for 45K
If the property sits in a ganged out war zone and the foundation is bad, I offer a lot less. If its rented and still in bad shape I will offer more. If the seller is stuck on a higher price I will still write it up cuz many times Ive been shocked they sold and I still made a great profit. If a realtor is involved I walk away quickly,
If somebody died in the house,I offer less, if its next to RR tracks or the freeway I offer less. If its less that 900 SF I offer less.
If the seller is a good looking Asian porn star and I think I can get some gugma I will pay a little more. Each situation is different.
Its not a science, its a big guessing game. Now get out there and make a mess of things.

34

It’s hard to make a mess of anything when I get no calls other than those wanting full FMV.

Maybe I’ll get some some day, but for now, I’m out of marketing money.

35

The first year I started I didnt have a car, I didnt have marketing money, I got busy placing 50 ads on Craig’s List in my city and other towns and cities and states. I started recruiting bird dogs. My first year I did a half dozen deals, a couple out of state, a couple from my bird dogs and a few from my local ads.
I was only doing it half ass, I shud of been out door to door, handing out brochures on car windows and handing out my business cards and calling landlords and for sale by owners.
The first year I made enuf money to get a 98 Toyota and take a 4 month vacation to a tropical island with my family.
I was a total screw up, so maybe there is hope for you.
Now shud I hit you in the gonads with some tough talk or hold your hand and sweet talk you?
I don’t know what to do for you.
I feel like there must be something I can do, but then I realize, you alone are responsible for your own success or failure.
Good luck human.

36

Screw this.

I’m gonna go smoke some crack.

(just kidding)

37

Red, what are you going to do next?

How much time and money have you spent so far on wholesaling?

38

Using drugs and alcohol is a sure fire way of messing up (not just wholesaling but) just about everything. In books by Andrew Carnegie and Napolean Hill they both list drugs and booze as the first things to avoid in life.

If we want to become successful its best we keep our noses clean, Red. The other two things those two guys list as things to avoid are excessive sex or having negative and destructive sex partners. But then I think they list negative thinking as the worst culprit of them all.