lomax_properties

Well yea that's definitely a great way to get a couple extra deals in the pipeline,I like it and will start implementing, free emails, owner shows it, free marketing to buyers,I like it.

How many deals a month would you say you do structured like that?

My question is how do you position yourself with out off state sellers so that you aren't just a consultant. Especially since they are the ones showing the property. What do you run into once they find you are not local? Do you have someone local to post signs?

Wow do you ever sleep MC, posting at 3am lol.

That truly interests me on how you get the seller to show the house for you, I heard Joe once say the same. I guess my question is how do you position yourself from the start. Do approach them as you are looking at buying properties in that area, and can offer more by renting it out for a couple of years and buying at the end of the lease, or do you first approach it as a CA, that you will market for a TB? Also, how do you gauge which markets to market to. I'm trying to figure out a way to systemize the process so I can replicate what I do in Tucson and grow. Thanks for all your help and knowledge MC

Nick, yes you are going to have two different prices. Let me try to break it down for you. You go into an agreement with a rental contract and option to purchase contract with seller = purchase price is sellers net Now you can market the property because you have an equitable interest. Once you find a perspective tenant/buyer you can assign your first agreement that you have with the seller to the new tenant buyer for a fee The purchase price that the new buyer sees is the net of the seller + your assignment fee + rent credits. Seller wants to net $100K Your fee $3K Rent credits $2k Buyers purchase price $105K Make sense.

Right now I have a retired realtor show all my properties to buyers. Also, what we do is a fee agreement with the seller to collect the first months rent from the tenant as a fee as well as the option deposit. He is also a real estate paralegal and says this is legal. Do you have any input on that. Thanks, Tim

Hi MC, its been awhile. I have been mostly email, texting, and voice blasting and or calling CL, and been averaging two to four properties a month. However, lately CL seems to be getting a little tougher and I am wanting to grow the business. I have the brochure John used to send, however, I am thinking the PostCard may get a better response. I put as post on O'desk and got some responses so can probably get the PostCard designed pretty cheaply. I wonder how many postcards he sends to new sellers each month and how many are follow up? Also, wondering does he just send postcards or is he still sending hi brochure. Also I had a question for you MC. I saw that you pick up a LO in Ohio virtually. Do you have someone who is boots on ground in that market to sell the LO? Thanks, Tim

Not sure if anyone reads this thread anymore, but does anyone know where John orders his postcards or how he got them designed. Thanks, Tim

Also Erik, Why are you thinking about assigning the agreement, are you looking at getting cashed out. You may think about this scenerio, which is what you may be thinking, however, from what you wrote seems like you are looking at assining the agreement to the TB. What if you do the SLO, so you sign the lease w/ option to buy, then you LO to a retail TB which now you have an equity spread and cash flow spread. You collect your 3-5K option fee. Now with the TB in place you decide you want to assign the agreement. Go to your local REI find someone who wants to own a rental and now you can assign the agreement to another investor collecting more assignment fees.. BOOM BABY Now you got paid an assignment fee and option deposit and perhaps it took a few months so you collected a few hundred dollars in cash flow and now you are completely out of the deal. Maybe that will work for you.

Also, you are not getting an apraisal at time of your agreement with seller. So when you go to close you aren't going to have an apraisal at 100K and then one at 110K. You are going to have an apraisal at time of closeing for the 110K and your contract with the seller should be at 100K or less. So your criteria should be buying the property at around a 15% discount. Wholesalers are finding properties at 30-40% discount. It comes down to being a numbers game. Ramp up the marketing and only speak to motivated sellers who need their mortgage covered and are losing money by keeping the house especially if it is vacant. So don't let anyone tell you that you can't do something. Period. Their are people out there that are finding homes at much larger discount and doing double closings. Find a good mortgage broker to work with and have all your buyers use him for their funding. They don't use your mortage guy, they don't buy your home. Same with your title company. Also, make sure you have good criteria for your SLOs. I would say 300 mo cash flow, purchase the property at 15% bellow market value, and shooting for a 15-20K profit when it closes. A man is measured by the size of the obstacles he overcomes.

I'm listening to your webinar that you did with Joe and Todd and your door hanger method. Now would you say you have a better response with door hangers or direct mail. I have the permit should I still do door hangers instead. Thanks.

Amazing info John, Just found this thread after I responded to your post on the direct mail numbers. I do have the brochure outline that you use so now I see how you do the door hangers by just getting a bag. I like the magnet idea. You stated to put out 3k door hangers. With those kind of numbers are you suggesting I blanket areas or direct marketing to the specifics we use for the MLS. Also, if you are marketing to the same homes you would through the MLS, whats the difference between doing a door hanger then them recieving the brochure through the mail. Thanks John. " Everything about business comes down to people. Where in business can we escape the impace of human care, human creativity, human commitment, human frustration, and human despair? There is no reason for anything in business to exist if it does not serve the needs of people? Bruce Cryer

Thanks John, My plan was to do your brochure in which I have down before and made 5K off of 600 letters. I was also going to do 500 yellow letters and about 100 bandit signs. Do you suggest that instead off all that do about 3K door hangers. Any good Ideas for door hangers does overnightprints have door hangers. I have your outline for a bochure, do you have one for a door hanger. Thanks again John. "The most important thing for a young man is to establish credit, a reputation and character." John D. Rockefeller

I'm actually sending mailers to the whole county which cuold include me driving over an hour to the property. I believe when I have the marketing numbers I will send mail to all listins even the active contingent and capa. Right now I sent to all active listing from 80K - 220K which is slightly above the median price in my area. I have taken on more expensive properties, however, find it difficult to move. I send some letters to capa, because in those cases the buyer within the transaction needs to sell their house so I feel as though it more viable to become active again. However, next mailer I will send to all active, capa, and contingent. I am also doing craigslist calls, texts, and emails which is done by a VA. However, am looking at hiring a VA who can return calls. I will be in need of someone who can speak english well and not sound like a robot. If anyone can recommend a VA they may be using who needs more work please let me know, we can discuss a referal fee for you. an Remember, "If you help enough people get what they want, you will get what you want" Zig Zigler