I decided to post this in the success forum simply because I view taking action as a success in and of itself.
So I sent out my first 1000pc mailer to a neighborhood I know fairly well down in the southern part of Florida in a small town where there are over 5000 vacant lots and a county where there are tens of thousands of vacant lots. These are quarter to half acre lots (mostly quarter) and there are houses dotted in and around the area. The lowest “comp” on Zillow and landwatch is 7900 and most lots are for sale between this price and say 24000. (Assessed values are mostly in the $6000 range.) The only thing is that of these comps, most have been listed for a year or more, so I wouldn’t say there’s exactly a hot market down there by any stretch. When I scrubbed my data, I noticed that the county owned dozens of these lots, so based on my interpretation of Steve’s logic this seemed like a decent area to canvas. I priced my offers at $1200 – no doubt a low number, but I was hoping to pick up a few where people were sick of paying taxes and HOA fees.
Results so far of week #1 of responses: 0 deals and major, major hatred. It’s pretty safe to say that any dreams I may have had for running for public office are over lol. I truly can’t believe how emotional people get over receiving an unsolicited low-ball offer on a piece of dirt. You would think I had just threatened to kill their dog or called their mamas ugly. I guess I should have left in the clause in my letter that the seller could keep the mineral rights, because most of these people must think they are sitting on top of a pile of gold. The only thing I can think of as I’ve looked up the purchase history on those properties where the owners actually tell me their names before telling me to F*&% off, is that most of these people bought these lots in the early/mid 2000s right before the big bust and have lost a ton of money. The worst one I’ve seen so far was a guy who paid $48,000 for his lot in 2005. Not coincidentally, his counter offer after telling me to F&^% off was $50,000. I guess that brings back a lot of pain for these guys and they have me to take it out on. One lady pronounced shame on me, said I was deceptive and prey upon/take advantage of old people.
Takeaways: Before sending out a mailer in Florida, be prepared for the worst kind of hate imaginable, because a lot of people did a lot of speculating and lost a lot of money. I seriously think they all have the deeds under their pillows at night and cry themselves to sleep hoping that the market becomes completely irrational again so they can make their money back.
What do you all think? Was I wrong to offer so little? With lots sitting on the market for a year or two or three, I certainly wasn’t going to offer $8000. Anyone else having any luck in the sunshine state???
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