Last year around August, the market in our area had shifted in a way that made it hard to find good deals. Houses that we would normally buy for $100,000 were going for $120,000. I think we do a decent job really looking under every rock, but the deals were few and far between.
At the time, I had been kicking around the idea for a direct mail campaign to find sellers, but hadn’t been able to figure out a plan for the logistical hurdles. Direct mail is a pretty serious undertaking. Find the lists, send the mail, handle the phone calls, set the appointments, followup phone calls, make the offers, follow up again, get the contract, solve the title problems, and close with the seller. All that before you can even start the process of rehabbing and then selling the house. However, the lack of assets was the wake call I needed.
The good news is that we are just over a year into the direct marketing and it’s going great! We are getting better deals, and we are getting more of them! This type of system has a snow-ball effect and our snowball is growing pretty rapidly.
Unforturnately for the first time ever, we recently had some investors pull some money out, so we are looking to replace that money. Our company has a track record of 100’s of flips and deals and a long history of success. We do have a very large credit line through a major real estate lender, but everything works much smoother for us if use that credit line for larger deals and keep a pool of investor funds for moving quickly on smaller deals (the majority of our deals). A lot of times the sellers are selling because they need to move very quickly – which is less conducive to larger institutional lending.
If you have money you are looking to park for at least six months or know somebody who is looking to invest, please email me at JustinSadauskas@gmail.com.
Here is a house we purchased through direct mail and the end result:
BEFORE:
AFTER:
https://www.zillow.com/homedetails/19249-Heckman-St-Clinton-Township-MI-48035/170351345_zpid/
justinsadauskas 