Blog Post: First House Flip (Q&A Member)
A member is having trouble getting a bite on his newly finished flip and came to Charles for thoughts.
He says, Just finished my first flip and sent 2,500 mailers with the house details: 100k – 375k assessed value, SFR/Townhouse, >50% equity, >3bed, >2bath, Age of owner 55+.
– 17 total phone calls
– Ten removal requests
– Five retail sellers
– Two appointments/offers
– 0 deals
I know I should stick with a campaign and mail the list 5+ times. However, I can’t help but think that with numbers like these something is wrong. Anyone have the advice on what I should do next?
I have many properties in Maryland; I receive no less than 20 cards and letters monthly. I marvel at some of them; stick figures of houses with big dollar bills all over the message. Or worse, silly childish letters written on yellow paper (how can you take this letter seriously), “urgent!!!!” written on the envelope, handwritten notes, pictures of scary looking investors on the card.
I would suggest that becoming proactive is more efficient, no cost for postage or paper cuts. A legitimate investor is ready to do deals, cash lined up, the skinny contract available, assignment agreements, understanding of creative financing, terms, presentation, knowledge of marketing by private treaty or public auctions.
Talk to sellers who want to SELL! They are more ready to take a discount, motivated, desperate, foreclosures, auctions, expired listings, FSBO’s, tax certificates.
You are not looking to buy a property (house or commercial building). Nope! You are looking to control an EQUITY. How much EQUITY is in the deal? HOW much of that EQUITY can you control (without the obligation to buy)? How fast can you get to a settlement without messing around with agents and DO-NOTHING INVESTORS, or lenders who want to eat up your equity?
I practice Control & Roll and do lots of deals without the stress of borrowing money, dealing with agents, contingencies and only deal in assignments of real estate contracts in “as is” condition for all CASH.
Wishing you good luck and happy hunting for the BIG EQUITY that is out there for you – find it, control it and assignment for a cash profit.
Charles Parrish, CEO Investors United School of Real Estate Investing
s – instead of just aiming for improvement for the sake of improvement, your results might exceed your expectations if you strategize it.
This approach can be applied to our craft here at IU. Many of you have specific goals in mind; maybe it’s to obtain rental properties, maybe it’s a specific amount that you want to earn this year…
You have 12 Months, what are you going to do in the first six to “sharpen your axe”?
Happy New Year
– Academics Director