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

Thanks David, I ordered your signs and did what your manual said, however, in the begining because of the strict sign laws in this older community "retirees" I was hesitant on putting up too many signs. I had the proeprty listed on craiglist, backpage, and kijiji, however, the few calls I received were from the signs. However, no real buyers, then I said heck with it I need to get this propety moved put up more perimeter signs and put some up even in the neighboring city, put up more directional signs starting from the off ramp of the freeway, and would go back and make sure the signs were up, if they got taken down I put more up... Well, I received the most calls that I had been getting and now the house is in escrow as a seller carry back in which I will be collecting a $5K assignment fee. Thanks for your time and manual, I saw much more result from the signs then my internet marketing. Remember..... "The pain of success is temporary, whereas the pain of regret is forever."

So quick update. The property that I received from the first mailer I put up available as a CA lease option, however, found a buyer who wanted to do seller financing. I start my investing career as a wholesaler so I was pretty familiar with seller carry backs. Went back to the seller told them that they could now get full asking price for the property and make 6% on their money for the next 5-10 years which would net them an extra 30K-50K $$$....They are both older and understand residual income and working for their retirement so they wanted to do a 7 year plan. Went back to the buyer told him that my "partner" and I agree to do seller financing at 6% amortized over 25 years with a balloon in 7. He was very happy and thankful and instead of the %3500 option deposit that we were asking for he stated that he wanted to put down $5000....an extra 1500 for yours truely. So now the property is in escrow and should close this week with me collecting my assignment fee of $5K.... However, all this comes with a question. I have more money to do marketing, however, I noticed that once I want to do the marketing to the fullest....there are only 3,000 property listed in my area that are in the price range that is acceptable and most marketable for a lease purchase......and some of those are going to be short sales and foreclosure....... DO you have this same problem John.....I want to work up and be sending out thousands of brochures, but may be looking at having to start something virtually for a bigger market. I will be sending this next list twice and hopefully will see a much better result than just one property from a mailer of about 600. This time around I will be sending out 600 twice. Thanks for your feedback and remember..... "WInners never Quit, and Quitters never Win"

Thanks David. I am going to order your signs and put them out this weekend hopefully I get them in time.

Because, cold calling from CL, most all posts are FOR RENT not FOR SALE. I tried your approach before, and everytime I said I was an investor looking for a property in that area, they just come back with its not for sale...and I try to have to explain the whole thing.

Thats a good idea, I will probably blast out emails to everyone to see if they are open to a lease purchase, and if they are, I will try to get them on the phone asap.

Yea, I just started. I am mostly bird dogging turn key properties that are already cash flowing and have guaranteed rents for the first year.

Not sure if I understand...if I'm breaking any rules let me know and I will take the post down, however I'm just trying to advertise properties that we have that we are guaranteeing 15% ROI for the first year.

Hi Dennis, Have you seen my earlier post. Are you interested in 15% ROI gauranteed for the first year. Free management as well. If so let me know.

I am interested in what I would need to apply for a business loan. I am very new and just created my LLC. Thanks

My associates and I provide Cash Flow Properties that will give you a ROI of 15% or more. But what if I told you that is was Guaranteed Cash Flow. This is not a gimick, I am live and local here in Tucson and will be happy to meet you in person if you are in Tucson as well. Guaranteed Cash FLow in 3 simple steps 1) Open up Escrow with $2,500 and Choose a Property 2) Close Escrow with $36,500 We do the rest *Rehab *Place Tenant *Manage 3) 30 Days C.O.E... YOU CASH FLOW GAURANTEED!! If you think that is a great offer then you would be correct. If your able to show me a better investment than please let me know I would be very interested. Give me a call and I can let you know even more about the great benefits that we are offering. This is not a get rich quick, these are real properties, real escrow company, and real tenants. So, I ask you again... What if I told you of a legal, ethical way to get 15% ROI on your money, GUARANTEED for the first YEAR, is that something you would be interested IN!!! If so give me a call. Tim Lomax,founder,CEO Lionsgate Properties LLC 520-329-2190