Real Dealz Monthly – Official Launch!
We’re officially launching our Real Dealz Monthly website today so investors can now subscribe to our monthly newsletter! We will begin releasing Real Dealz Monthly at the beginning of December and every month there after. Click the link below for more information!...
Direct Mail Secrets: Part One
Back when we first started the podcast, very early on we did an episode on Direct Mail. It was our most popular episode to date. Recently, we went back to that topic in order to build on that prior knowledge and help get you on the road to bigger profits in Episode #73. So, in essence, Episode #73 was meant to be updated version – version 2.0, if you will… So, a year later, a different market, what is different and what is relevant? Let’s take a look a few caveats to the direct mail game! First, let’s talk about how to get deals in today’s market. It’s as simple as this: there are Realtors/RMLS (waste of time), Foreclosure Auctions (super slim margins), Online Ads (untargeted), and the last way is Direct Mail. The beauty of Direct Mail is it is super targeted and self-directed. You’re depended on no one but yourself. But, there is a wrong way to do Direct Mail. What is it? Well, every other Talking Head and GURU says pull an absentee owner list and send them yellow postcards through click to mail, and be sure to send a ton of these yellow postcards to thousands upon thousands of owners a year. Does this work? No. Do people fall for it? Yes. Why? Because it’s easy. So, here is the long and short of it – there is a better way to do Direct Mail. First thing, you need to consider who you’re mailing. The harder that list is to generate, the better that list is going to be. Why? Because less investors are going to be mailing those homes. What we do is generate our Driving For Dollars List. These take time and energy to create (Something we’ve talked about on the podcast), but it’ll become much more streamlined with our D4$ App coming out this summer. We target specific neighborhoods that we want to be building in. And then, we target specific properties that could be renovated. There’s no point in mailing a home that was bought 2 months ago. There is no motivation and there is no equity. As investors, we need to target specific properties that fit what we are going to do with them: renovate and repair, then sell at a profit. If there is nothing to renovate and repair, then there is nothing to...
Today’s $30,000 Hot Topic: Asbestos!
I have a buddy who buys a lot of wholesale deals from us, and a couple months back, he made a major screw up which is going to cost him some big bucks. So, specifically, this lesson is for those doing infill projects, but still applies to those doing rehabs. Alright, what are we talking about exactly? Asbestos. Asbestos is something one deals with on the front end. Before a house can be knocked down, the asbestos must be removed. So, long story short, our wholesale buyer was going to do a knock down the old house had asbestos siding around the outside. Now, there is a certain asbestos siding that can be removed without as special abatement. You can go in there yourself and clean it up. The EPA says it is okay, so you can go in there with a mask and get it done. My buddy decided he was going to clean up this type of asbestos himself, but only after he had knocked the house down. Never mind hiring an excavation company to clean up the mess, he wanted to do the entire teardown and asbestos cleanup himself. Well, bad idea. The asbestos clean up wasn’t possible as it had broken into little pieces and the neighbors figured out what was going on. The EPA arrived, shut the project down, and he is now footing a $2,000-a-day bill for their cleaning up the asbestos. Not mention the hard money he borrowed with the project, it’s turning out to cost him a bundle of $30,000. The lesson here is this: the entire hassle could have been avoided if he had thought a little more about what he was doing. So, deal with this simple stuff on the front end, and the rest of the project will run smoother. You don’t want a $30,000 mess costing you...
Seller Leads Just Take Time…
Sometimes, seller leads take a while. How long? Days, weeks, or even a year! It took us a while to learn this lesson. In March, we got a contract back from a seller, which we had been mailing for over a year. They never called and we kept mailing. Then, around the beginning of the year, they were curious to hear what our offer might be… To make a long story short, we agreed on price and we scooped up the property. The reason being is the location. Now, you might be thinking – it’s in a hot area, right? Well, not exactly. Lake Oswego is a hot place for redevelopment, but there are certain pockets and neighborhoods that haven’t caught the bug yet. But, there is only so much space in each neighborhood. It’s a question of scarcity and how long before builders move into another neighborhood. I think this home is in the next hot spot. I made sure to make a land grab on this property because it’s in one of those untouched pockets. My point here is this – everything takes time. The seller may take time to call. You have to be ready and willing to work with them. And, a hot neighborhood doesn’t happen overnight. You need to be one step ahead and make your moves with confidence. So, be ready and pay attention. You want to be one step ahead of the...
Take a peak behind the curtain – check out the Negotiating with Sellers Product!
I wanted to put together a little something about the Negotiating with Sellers Product. I know it was a long time coming – remember, it took us a while to collect all the calls, filter the calls, and put together the medium to deliver the product. Regardless, we put a together a product we are proud of and we hope you’ll check it out. Now, there is no product like this on the market. Why? Because most Guru’s don’t have a real business to post up as the backbone of their product development. We do. Everything we say, do, make, or build, is inspired and created because we are working the REI business day-in and day-out. But, this product is especially unique because we are really pulling back the curtain on this one and letting you hear how we handle with Seller Leads and you get to hear how we put deals together. Understand that is has been years and years of trial and error, and it has been years and years of Chris (my office manager/in-house Realtor) and I talking about how to make these deals work. Really, we’ve got a trunk load of secrets to help us close on deals and make sure your sellers take your price. So, if you are curious what strategies we use to run a multi-million dollar REI business in the Portland, OR Market, this product pulls back the curtain and gives you our secret sauce to...
Buyer Beware! The Nightmare of the HOA!
Let me tell you a story… It is one I’ve been venting for a few months now, and it has to do with a renovation in Lake Oswego. It is a renovation we are nearly finished with. The home was a shit-shack, yes. But once we’re finished, no longer! And, it’ll better the neighborhood! But, once again, the HOA has turned into a huge nightmare… Initially, the HOA was there to help manage the common area and make sure Uncle Eddie didn’t move in and put up blue tarps everywhere. But, over time, they’ve come to consume the entire damn neighborhood. They’re power hungry – everyone can see it. So, here is how the power of the HOA Board first imposed their will… I put up a “No Trespassing” sign on the property. This is standard for us. We put up a sign as the first barrier to protection from litigation and frivolous lawsuits. Well, the HOA Board had a fit and I had to go down to one of their meetings and negotiate my way down to posting a sign on the trash can. Fine, I thought. I’ll make it work. But, the next day I notice the neighbor has a “Beware of Dogs!” sign on his garage. It was dirty and cracked, and was visibly aged. Then, I had to submit a change form for the siding. Then the roof. And then for the landscaping. All-in-all, I’m not sure how many change forms I’ve had to submit. 8? 10? 12? Sorry for the rant, but here is the nugget: Beware of the HOA. I’ve said this before and I’ll say it again. Read their legal docs, find out how they operate and tread lightly. Just remember: profit had better beat the hassle of the...
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