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Hello Community,
I’m new to CashFlowDepot. I’ve been in Real Estate for about a year now, focusing on wholesaling in Northern NJ. At the moment, I’m looking to develop consistent lead generation.
I’ve employed a direct mail campaign, bandit signs and cold calling, but nothing leading to consistent leads. I’m hoping this community can help with that. I’m excited to continue this journey to profitability and passive income.Happy to help how I can. Let’s be profitable together!
Mike – thank you! I live in Jersey City, investing in Essex and Union Counties.
Don – I’ve bought lists from listsource targetting NJ home owners. I’ve put up bandit sigs in Jersey City but I received more calls from buyers than sellers. For the property that I did receive, I wasnt able to find a buyer and that’s with marketing on Craigslist, my buyers list, and local REA hosts with 10,000+ buyers list. I get a high percentage of return mail from my list.
I’ve gotten vacant property lists from various cities. But haven’t been able to find the owners. Mostly a lot of returned mailers. I’ve send the returns to a local REA as leads but nothing has come of it.
I recently just signed up with an online lead generation system. I’ve created a website and sent a 3 touch campaign to a list bought on the site. I’m also looking into Facebook marketing as well.
Candice,
Sorry it took so long to get back. My hard drive crashed on my main computer. What a headache. We need some more help from you as far as what your are trying to accomplish. Are you looking to build a portfolio of long term rentals? Are you looking for fix and flip properties, or are you looking for wholesale deals. Are you going to use your own money, or are you going to be looking for private investors money.Candice,
If I was starting out I would focus on vacant houses and probate (inherited houses). The thing is your leads will only be as good as your list you are constructed. Last year I mailed a list from Attom Data. It was a US Postal Service Vacant house list. Was not a very clean list with maybe 20-30 percent with no forwarding address. Much better to have someone drive neighborhoods looking for vacant homes. Probate lists I have always constructed from courthouse data. For a targeted approach for investors I would do two things. First start attending the foreclosure sales at the courthouse. The bidders there are cash buyers. Second follow the money. Start looking at the homes sold looking for LLCs or Corporations buying homes. Also any individuals making multiple purchases.Candice,
I can only add to what good info Don has given.
I would use master leasing if I were just getting started, as prices may be going through an adjustment period.Here’s why:
1. immediate cash flow
2. no (very low) capital required
3. in your area, rents are strong and demand is high.
4. No focus on sales price as you are just controlling the property with a master lease.Jackie has excellent information here on CFD on Master Leasing.
The rest of us are here to help,
Mike Weiss
HI Candice
Welcome to the CashFlowDepot family.
The key to wholesaling is being able to get a contract on a house at about 50% of market value. With that in mind, you know that there has to be a lot of equity so the deed date needs to be 15+ years (the older the better). Vacant, run down houses are what you need. Rarely is a wholesale opportunity occupied. Track down the code violations lists for properties which the city has said no one can live in them until they are fixed up. These are the houses you can get at 80-90% below market.
Mailings are expensive and I have found them to be very effective for wholesaling. But they are great for other techniques.
Besides the code violation lists, driving neighborhoods is the best way to find old, run down looking houses which are wholesale opportunities. When you find what looks like a good deal, go talk to the neighbors to ask if they know what the situation is with the house and if they know how to get in touch with the owner. I also leave a note on the front door that says I’d like to talk to your about your house, please call Jackie at #####
Walking neighborhoods, Knocking on doors and talking to people is a great way to find deals.
Get to know the mail delivery people in your target neighborhoods. Let them know you will pay a referral fee if they let you know about vacant, run down houses that you are able to buy
Running an ad in craigslist that says $500 reward for information about the worst looking house on your street has always yielded great results too.
There is not 1 way to get consistent leads. You’ll need to do a variety of things like I mentioned above to keep the lead bucket full.
Don’t forget to follow up on leads that did not work out the first time you talked to them. Time and circumstances has a way of changing everything.
Finally, don’t be so focused on wholesaling to over look other opportunities which may be right under your nose. It is a good idea to learn how to do master leasing, buying with seller financing, buying subject to the mortgage, mobile home investing, OPTIONS, highest bidder sales, etc etc… so you are armed and ready to know how to structure any kind of an offer. We have training about all these techniques in the Premium Training section.
Even with wholesaling, if you can get the seller to sell it to you with seller financing (and great terms) then you’ll be able to sell with seller financing. So, your buyer will not need a chunk of cash and will not need to get financing. You’ll be able to sell the house for more. You’ll get a nice down payment, monthly cashflow, then in about 6-12 months, you’ll get cashed out.
Another piece of advice, if you make two offers instead of just one, you’ll get a lot more sellers to say YES to your offer.
Hope this helps
Jackie
Great feedback all. Thank you! I’ve got a lot of research to do. I’ve got a few questions below for you.
Don –
1. Where can I find probate lists on the courthouse websites? Understand that all city websites are slightly different but what section should I be looking into or what key words should I use?
2. I have MLS access. Where can I find where individuals purchase multiple homes. For example, I can search by type of home or by location. But how do I search by buyer (name, LLC or frequency of purchase)?
3. You’ve suggested going to the courthouse foreclosure sales (I assume you mean sheriff sales). What do you recommend for a person who works full time and is unable to attend sales midday, midweek? I’m currently building my real estate business part time. Other than those mentioned above (walking neighborhood, mailman, etc) any suggestions for things I can do to gain deals on the computer / on weekends? I’ll do these things as well, I just understand my limitation as a part-time business owner.Jackie –
1. Where can I find the code violations list with the city? I’ve gotten vacant property lists from cities before; is this what you mean? If so, I had an issue tracking down prior owners? What is the best way to do so and what do I do once I find them, especially if the home has already been foreclosed on? Is there a CFD training I can access for this info?
2. You said, “mailings are expensive and I have found them to be very effective for wholesaling. But they’re great for other techniques”. Assume you mean, mailings are INeffective? If so, would you recommend halting my mail campaign and looking into other solutions?Thanks again All!
You’ve been extremely helpful!Candice
You can skip trace that list and get the phone numbers and cold call. I use http://www.batchskiptracing.com use the offer TTP and get a discount. I got 365 names for 17 cents each.There is a new program that is out for about 3 weeks now. It is from the investorfuse people. It is called sendfuse. You put into your cell phone send mail for (Address) and it will send a sequence of 8 postcards to the property owners address (Address where the tax bill goes). You can event send a picture of the property if you wish. I think it is like $36 a month and $0.75 per post card. Get people to drive for dollars for you. Sendfuse will send a link to their phone. Give them $1,000-$1,500 per deal you close. http://www.app.getsendfuse.com
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