Hey Im new to the whole sell game I have been learning as much as I can for like a year now have come close to closing on several deals but my inexperience caused them to fall through but the other investors I have talked to have told me im on the right track and being 27 I have time on my side but I have about 1000 dollars to play with and Im wondering what you guys think I should do with it should I put it all into marketing? and what have you guys found to be the best way to have motivated sellers?
If your inexperience caused the deals to fall through, then finding more motivated sellers may not fix that problem. Take courses or find a good mentor who will guide you properly.
So post on this forum to get recommendation for good mentors. Otherwise you may run into a fake mentor who will clean your bank.
John Cash Locke has a good training course and he provides excellent mentoring for free if you buy his course. PM him for more information.
Keep the money in your pocket. Don’t “market” with that money. Go buy business cards and go to bunch of real estate clubs and network to get deals.
If you want to spend the money, buy a list of homeowners and cold call them in person or on the phone. You’ll get deals if you have a good script.
I guess I would take that 1k and invest in the Detroit Market… :beer
Assuming you understand the fundamentals very well (how to calculate ARV, MAO, price negotiations, etc) what I’d do is hire a bird dog to go find you about 100 vacant houses (with pics) in your area. Tell him what areas you want and what kind of houses to look for. Pay the bird dog $5/house. That’s $500. Go to odesk.com and pay a VA $50 or whatever to look up info on each house (find the owners on the county tax website, look up comps, google the address to find out if they’re listed/REOs, etc).
Focus on the FSBOs for now. Let’s say half the leads are FSBOs (250). Do your best to track down the owners. Send “yellow letters” to the owners’ mailing address, or send to the vacant house with an “forwarding address service requested” stamp on the front. Skip trace the owners who are hard to find; those are the real golden leads. You got $450 left over to run these skip traces.
After all that let’s say you’re able to track down the owners of only half of those FSBOs (125). These are your prospects. You should be able to get 1 offer accepted for every 15 offers made, so if you make offers on all 125 prospects you should get 8 or 9 offers accepted. If only half of these close that’s 4 deals.
All the suggestions here are very helpful and I am also looking for better investment but not getting any better update and I don’t let my investment hamper.
nsu1997
What skip trace service do you use?
Thanks
-Terry
You could use findtheseller.com but I signed up with merlindata.com because it is much cheaper (merlin is $2.50/search vs $20 for find the seller). Merlin essentially give you access to the same database the skip tracers use, effectively cutting out the middleman and saving you a ton. However the application process is rather involved and you need a business entity. You’ll also have to fund your account in advance.