Newb Questions...?

[djbusch 2]

It feels weird calling myself a newb. I've been dipping my toe in the investing waters since the early 90's...but never possessed the confidence to run out & do deals.

 

Anyway, I've designed an automated script (a robot, if you will), which e-mails all the FSBOs from my local craigslist page once each day, taking care to avoid contacting the same seller twice. The initial e-mail is MC's "would you be interested in selling your home via lease purchase" standard. Most of the responses are polite rejections. Some are rude as hell. Others express interest in the concepts of lease purchase, so I hit them with MC's second e-mail, which brings us to the first question:

 

Have you had any luck with MC's "2-email system" in the past? How recently? Are there any tweaks needed to apply that system to today's real estate market? Most sellers either stop contacting me following the 2nd e-mail, or worse, they flat out reject the idea. I think I should be seeing more positive responses. With some sellers, I personalize the 2nd e-mail instead of using the form. I always include the Lease Purchase Advantage flyer, but more often than not, these e-mails are rejected as well. I guess what I'm trying to do is put together an effective marketing plan, relative to craigslist.

 

Second, of the positive responses I'm getting, there seem to be an inordinate number of people looking to sell so they can buy a new home. Are these people properly motivated to even consider doing a creative deal? For instance, I have one woman who has been e-mailing me for about 2 weeks. She wants me to meet with her and her husband to discuss what I can do for them, but I believe firmly in the principle that you don't meet with a seller unless you have a tentative agreement already worked out. Am I wrong? Should I meet with her? Should I even be discussing her property with her?

[DeeLight 8]

Hi David,

 

I hope you're jumping in all the way this time. I think that this market is a good one for many of the r.e. niches.

 

I am having similar success with the emailings. I did get one this morning that is curious. I had a couple last week that didn't work out.

It's a numbers game and takes diligence and tenacity. I used to do direct mail to preforcs and each post card I wrote I would say I'm one step closer to finding a seller that is happy I contacted them.

 

The game is called "Find the needle in the haystack" or find the seller in all the hundreds of CL ads. It sounds like you're doing everything "right" and that you just haven't found the right seller yet.

 

With the lady that you've been communicating does she think if she can just get you to see her house you'll fall so much in love that you'll buy it conventionally? MC says we shouldn't spend our time running around looking at houses. The lady is either motivated . . .

or not. I've been told by experienced investors over the years that when you get a motivated seller on the line you will know it.

 

I have just started this l/o adventure so I am just following the path lead by others. Someone else may be able to give you some perspective with meeting with people who are just curious.

 

How many emails have you sent out so far?

[MichaelC 160]

Hi, David. Despite Melodee's n00bness in all of this, (n00bness?? Is that a word?), she makes several good points. It is a numbers game and it does take diligence and tenacity. Sending out two dozen or so emails daily takes but minutes, and you can't beat the cost. So continue doing so. I, and others, can tell you that the only consistency with this is the inconsistency. I'm not surprised when I hit a flat patch for a month and then four homeowners in a week want to at least discuss a deal. Just last week I had a troubled landlord with three vacant properties call me. So you never know who is on the receiving end of your efforts, David. My mindset is that the homeowners who aren't interested or who don't reply to my second email have done me a favor and saved me time and aggravation. They're not interested, they're not motivated, we won't be doing business, so why bother talking? That's a big part of my reason for using this two email system. Like Dee said, if a homeowner is motivated you will know it.

[DeeLight 8]

Thank you Michael, and we do keep sending the repeat emails to the "not interested" group----maybe every month??

[MichaelC 160]

Thank you Michael, and we do keep sending the repeat emails to the "not interested" group----maybe every month??

I don't specfically target them with additional emails. They are going to receive additional emails from me as long as they continue to advertise online. But if someone replies or calls with so much venom I will make a point of not contacting them again.

[DeeLight 8]

That makes perfect sense. I wouldn't want anyone taking a contract out on me becuz I sent them one too many emails

[<Steve> 82]

David-

 

I use MC's email system the same as always and it is my main means of me contacting sellers and it woks and pulls in deals. It's like fishing, casting and casting, getting some bits and then landing one.

 

That makes perfect sense. I wouldn't want anyone taking a contract out on me becuz I sent them one too many emails

Does that mean you're Italian...?

[djbusch 2]

I hope you're jumping in all the way this time. I think that this market is a good one for many of the r.e. niches.

 

I'm committed to seeing it through this time, but frustrated that it isn't working faster. I don't like my job and I'm very anxious to put it behind me.

 

With the lady that you've been communicating does she think if she can just get you to see her house you'll fall so much in love that you'll buy it conventionally? MC says we shouldn't spend our time running around looking at houses. The lady is either motivated . . .

or not. I've been told by experienced investors over the years that when you get a motivated seller on the line you will know it.

 

I told her that I can't just run out and meet with every seller who wants to meet. So she stopped asking about that, but she continues to have lots of questions, as though she's really considering doing...something.

 

How many emails have you sent out so far?

 

I haven't kept count, but if I had to guess, I'd say 1,000 or more. Lots of them were re-mails to seller I had e-mailed before. Since then, I've modified the script to compare e-mail addresses and ad titles, to avoid contacting the same seller twice.

[DeeLight 8]

lol Steve. I always come here for my morning giggle and l/o lessons with my coffee

 

I had a lady respond withing 5 min of getting my email. She and her husband want to relocate---their daughter just died unexpectedly. I expressed my condolences and sent the LPA letter. I feel that there may be too many hoops here but thot I'd ask anyways.

 

The house is $425k, a large 2&2 (gorgeous) with ocean views. I'll check out the comps and frv.

 

They just listed with an agent because they weren't having luck selling fsbo. They will do a l/o "with a large down and close in 2 yrs" I didn't ask what a large down was. Should I get on the phone with her?

 

Thanks everyone

 

p.s. just re-read her email to me. maybe they aren't motivated enough yet---they owe nothing on the house. They just want the large down to buy a new house in AZ

[MichaelC 160]

With the property being owned outright, their motivation levels aren't going to be what you need. That, combined with a fresh listing and a demand for a "large down" tells me this deal isn't happening. . .at least not now. They may need more time. Let the Agent fight the market for now and follow up in two months or so.

[DeeLight 8]

Thank you so much Michael. I knew you would know At least I kinda knew that inside. I am always testing myself before I ask a question to see if I'm in the ballpark when I get an answer.

 

Yeah, I'll let them simmer