ShammgodParticipantJuly 15, 2017 at 9:58 pmPost count: 127
As I try and set this up to be a scalable business, I’d love to get some feedback from those who’ve been doing this for a while. Would love to hear feedback on what you feel is the optimal way is to handle some of the following, and why:
Which aspects of the business are you outsourcing, vs. which aspects are you making sure you’re involved in?
It seems that most are sending calls straight to voicemail to avoid spending a lot of time tied up on the phone and/or getting yelled at – does anyone who’s doing this as a business still answer their calls instead of sending to VM?
Terms vs. cash – seems from what I’ve read many don’t like the headache of doing terms deals. Curious how many are doing terms vs. full amount only, and if you changed from when you started.
Properties with back taxes- I had previously heard to avoid due to additional headache, are most ignoring those deals, or are they worth the effort?
Any states to make sure to stay away from?
Are there many here who are focused on a few, higher value deals rather than bulk lower value deals? If not, is there a reason outside of capital?
Would love to hear your insights!MilanParticipantJuly 16, 2017 at 8:24 amPost count: 407
Shammgod, this is what I do. I’m shooting to sell couple properties a month to make 10K or high value term deal – off course I get screwed sometimes 🙂 it’s all good.
Higher end deals. I don’t outsource anything yet. I learn the ropes first. I kind of enjoy it. I like talking to people. I have no problem at all with it. It’s actually kind of my strength.
Doing it machine like manner? Not my thing. Maybe someday. I certainly don’t want to be compeeting with people who do it like for example Luke. He has time, he has funds.
I have no time. And I would rather go surfin 😉ShammgodParticipantJuly 16, 2017 at 4:39 pmPost count: 127
Thanks so much for your response Milan!
off course I get screwed sometimes
Just in terms of overpaying? Or other pitfalls I should be aware of?
I don’t outsource anything yet
Roughly how many hours/week are you finding yourself spending? (and what volume of mailers is causing that amount of work)MilanParticipantJuly 16, 2017 at 5:19 pmPost count: 407
I’m still rookie. I have done 15 larger deals. I created 100K in contract profit that will hopefully be paid over time in just a year of doing this. I sold some cash deals. Those are harder to come by. People want land on contract. Actually most of them can afford only contract.
I work on this biz about 5 hours per week. Usually spend more time extra just because I like it. But it is not necessary.
If I replicate this every year, I’m happy.
I had people stop paying their contracts which is fine. Now I’m dealing with someone who doesn’t want to vacate the land. It’s all good. Little problem.
I did send like 3000 letters.Noam OfanParticipantJuly 16, 2017 at 6:46 pmPost count: 42
You mean you only sent 3000 letters this past year that you’ve been doing this? Or is that 3000 letters a month?MilanParticipantJuly 16, 2017 at 8:10 pmPost count: 407
Thank you Kevin. I’m just approaching this very lazily. I don’t want too much complexity. I don’t want to hassle much at all. Nice smooth process, that’s what I’m shooting for.
Yes Noam, 3000 mailers in the whole year. That’s it. My most tipical deal so far was – offered $4000 sold for $250 down $250 for 99 months. I have 4 of these right now closed.
And I have couple smaller ones.
That’s it. Now you really don’t have to work very hard for that at all. Anyway, I’m not even interested in scaling this up at all. I’m fine with this numbers.
But off course contract defaults will be coming most likelly. We will see. It’s a learning process.Noam OfanParticipantJuly 16, 2017 at 9:30 pmPost count: 42
Milan, $250 down? Did you find this low down payment made selling the property much easier?
If you don’t mind sharing, what in your opinion is the best place to post your properties for sale?
Obviously you want to post all over, and anywhere possible, but if you could only use only one website to sell your properties, where would you post?Kevin FarrellModeratorJuly 17, 2017 at 4:50 amPost count: 626
Milan – I know that the low down payment gets properties sold fast. However, you can change your buyer profile just by increasing the down payment. In your example I would be tempted to market for $4,000 down and $250 per month. It will take longer to sell but your buyer will have some skin in the game. Good luck with your problem buyer.MilanParticipantJuly 17, 2017 at 6:38 amPost count: 407
True Kevin! Higher down payment. More skin in the game for them.
Yes Noam, I think that is why they sell fast – low down payment. But off course you have to count on defaults in the future.
I advertise only on 2 places – craigslist and zillow. That’s it.Chaz AlbrechtParticipantJuly 18, 2017 at 2:45 amPost count: 120
When putting mailers together your should expect to put in some hours. Some weeks I put in an extra 30 hrs on this business. Some weeks 10. I like this, and I like working. Most of that time is spent researching new markets and running comps.
Answering calls is easy when you know your prices are good. Get their info and tell them you’ll call once you’ve had a closer look.
I will probably partner instead of outsource when the time comes. Outsourcing to me is only for scaling up and I’m just not there yet.ShammgodParticipantJuly 18, 2017 at 6:38 amPost count: 127
3000 mailers in the whole year. That’s it
Are you mailing out to very specific properties, or still doing more of a ‘blind mailer’?
low down payment. But off course you have to count on defaults in the future.
would love to hear the default % you’ve seen so far on those if you don’t mind sharing Milan.ShammgodParticipantJuly 18, 2017 at 6:46 amPost count: 127
Some weeks I put in an extra 30 hrs on this business. Some weeks 10. I like this, and I like working. Most of that time is spent researching new markets and running comps.
Would love to hear a breakdown of where your hours go if you wouldn’t mind sharing Chaz. Example- during a campaign, 5 hours go to X, 10 to Y, 3 to Z, etc…
I will probably partner instead of outsource when the time comes.
Any reason why?MilanParticipantJuly 18, 2017 at 8:59 amPost count: 407
Shammgod, I had 7 terms, 2 defaulted pretty early on. So if I’m counting correctly it’s about 30% so far. But off course it is on low volume.
I think you have to count on very high default rate in this business of selling land on contract. Now there is not much of an expense there, but I’m getting ready for some for sure.
One of my contractees motor home burned down on the property. Than he disappeared. Is the burned down motor home still there? I don’t know. But it will cost $$$ to remove it.
Now if they stop paying and stay on the land, you will most likely have some expenses too with chasing them out. If you succeed, they’ll trash your land too.
So I understand when people want to sell for cash only. Close the deal done!MilanParticipantJuly 18, 2017 at 9:18 amPost count: 407
Shammgood if you’re looking for realistic view on this business, than don’t get fooled that it’s just so easy. It’s not true. There are risks. There are problems that will be comming. You’ll have to give people refunds. You’ll be dealing with squatters and garbage on your land. You’ll make mistakes transferring the properties. It’s all good you can overcome that. It’s like any others bussiness.
I just happen to like land so it’s a good fit for me. Make sure you have at least little passion for land, otherwise you won’t last.
You must be logged in to reply to this topic.