How Many Calls a day do you get?

[Tien]

I just had a marketing question and was looking to compare to things with other investors.



1) How many calls a day do you get on average from sellers?

2) How many calls a month do you get?

3) How many calls from sellers does it take to be able to proceed with a transaction?




Right now I am doing the Yellow letter campaign to Expireds / NODs (Multiple mailings) / Property Liens / Successions and get about 100 calls every 2 weeks but I need a bit more than 100 calls to get a deal.


Any experience with this?

[fadi]

Why such low conversion rate? what type of discount do you look for?

Last month I spent under $100 on my marketing because I do not want to buy any more. I ended up buying two houses, one with 10k equity but in perfect condition, the other with 35k equity but needs $8k repairs. This month I spent about $50 so far, I have 3 appointments but looks like all 3 expecting to be cashed out and I dont want to deal with all cash deals.

Again, not looking to buy but I don't want to shutdown my marketing to keep my name out there. People just want to sell.

[Doug Pretorius]

1 per 100 is about average if you ask enough investors. Ray Como confirmed that by making and receiving over 26,000 calls in a series of bootcamps.

The secret is to get off the phone with the other 99 as quickly as possible!

[Tien]

I am looking for some sort of motivation, atleast 80% LTV equity and about 85% discount.


I don't do any subject to deals. I haven't done one yet for Quebec and don't plan to keep any single family homes anytime soon. That's why I wouldn't even touch a house with only 10K$ in equity. The rents in my area wouldn't even make sense for 99% of mortgage payments out there on SFH's.


If I can get a house cheap enough at 70% LTV I buy that cash, if it's about 75-85% LTV I option the property and auction it away.


I have had successes with these round robin auctions where I am able to sell the houses at about 90% of market value.

[Tien]

Why such low conversion rate? what type of discount do you look for?

Last month I spent under $100 on my marketing because I do not want to buy any more. I ended up buying two houses, one with 10k equity but in perfect condition, the other with 35k equity but needs $8k repairs. This month I spent about $50 so far, I have 3 appointments but looks like all 3 expecting to be cashed out and I dont want to deal with all cash deals.

Again, not looking to buy but I don't want to shutdown my marketing to keep my name out there. People just want to sell.

Christ almighty 100$ in marketing.... How is your local market though? Depreciating market?


What are you doing with 50-100$ to get leads??

You sir are a God among investors.

[Tien]

1 per 100 is about average if you ask enough investors. Ray Como confirmed that by making and receiving over 26,000 calls in a series of bootcamps.

The secret is to get off the phone with the other 99 as quickly as possible!

Okay this lightens my heart up.


I did lose 2 very good deals to some uncontrollable BS though so..... We'll see for the rest of December.

[fadi]

Why such low conversion rate? what type of discount do you look for?

Last month I spent under $100 on my marketing because I do not want to buy any more. I ended up buying two houses, one with 10k equity but in perfect condition, the other with 35k equity but needs $8k repairs. This month I spent about $50 so far, I have 3 appointments but looks like all 3 expecting to be cashed out and I dont want to deal with all cash deals.

Again, not looking to buy but I don't want to shutdown my marketing to keep my name out there. People just want to sell.

Christ almighty 100$ in marketing.... How is your local market though? Depreciating market?


What are you doing with 50-100$ to get leads??

You sir are a God among investors.

I believe we had 3% appreciation so far this year, so the market here is still good. It took me over a year to find the right balance for my marketing, and I will still do the direct marketing campaigns once I get back into the buying game. I made some costly mistakes by owner financing to the wrong people and doing some evictions/foreclosures right now so I need to get rid of the houses I have before I buy more.

My marketing works for the type of deals I do. I find it waste of money for those who are looking to wholesale or get such discount because I hardly ever get such deals. However, when you get a 2 year old home in a good condition, you don't need 30% discount.

[MichaelQuarles]

1:9

[Tien]

1:9

You buy 1 for every 9 calls you get?

[Tien]

Why such low conversion rate? what type of discount do you look for?

Last month I spent under $100 on my marketing because I do not want to buy any more. I ended up buying two houses, one with 10k equity but in perfect condition, the other with 35k equity but needs $8k repairs. This month I spent about $50 so far, I have 3 appointments but looks like all 3 expecting to be cashed out and I dont want to deal with all cash deals.

Again, not looking to buy but I don't want to shutdown my marketing to keep my name out there. People just want to sell.

Christ almighty 100$ in marketing.... How is your local market though? Depreciating market?


What are you doing with 50-100$ to get leads??

You sir are a God among investors.

I believe we had 3% appreciation so far this year, so the market here is still good. It took me over a year to find the right balance for my marketing, and I will still do the direct marketing campaigns once I get back into the buying game. I made some costly mistakes by owner financing to the wrong people and doing some evictions/foreclosures right now so I need to get rid of the houses I have before I buy more.

My marketing works for the type of deals I do. I find it waste of money for those who are looking to wholesale or get such discount because I hardly ever get such deals. However, when you get a 2 year old home in a good condition, you don't need 30% discount.

What is the average price range and the amount you can rent your properties out at?


Seems to be that you are buying subject to and then selling it on owner financing or lease options.


I remember reading that you don't market to NOD's because of the short time frame. Is this still the case?

[Doug Pretorius]

Tien, you're in Quebec? Cool! Your the first investor I've met on any of these forums that's doing business in Quebec. I'm in Ontario.

[fadi]

What is the average price range and the amount you can rent your properties out at?


Seems to be that you are buying subject to and then selling it on owner financing or lease options.


I remember reading that you don't market to NOD's because of the short time frame. Is this still the case?

I am trying to stay under $120k homes. I do buy sub2 and owner finance them, although I am thinking of venturing into medium rehabs and doing some cashouts because I am getting strapped on cash with some defaulting loans. I don't rent, I just sell on owner financing... the notes I have vary between 8% and 10%.

I don't like NODs for many reasons... First, we get about 700 to 800 notices a month. We have as many investors in the local REIA club who market, door knock, calls them. I also don't like having to spend the money to bring their loans current, paying them to move, and fixing up the place. I do not have the cash to go after them yet.


Don't take me wrong, I will definitely go after NODs, Expireds, FSBO, FRBO in the future... but I have enough leads right now that I do not need to target them yet. Once I change my investing strategy, or max the return on my current marketing, I will go after them. But right now I don't have the need to *yet*.

I will probably go after Expireds first before NODs with strong copy (letters/post cards).

[Tien]

Tien, you're in Quebec? Cool! Your the first investor I've met on any of these forums that's doing business in Quebec. I'm in Ontario.

I think I remember your posts from dealmaker cafe!


The language barrier is preventing the Quebecers from learning creative investing techniques from the Americans and Americans or other creative investors are not getting involved in Quebec cuz of language issues.

Awesome market here in Quebec.

[Tien]

What is the average price range and the amount you can rent your properties out at?


Seems to be that you are buying subject to and then selling it on owner financing or lease options.


I remember reading that you don't market to NOD's because of the short time frame. Is this still the case?

I am trying to stay under $120k homes. I do buy sub2 and owner finance them, although I am thinking of venturing into medium rehabs and doing some cashouts because I am getting strapped on cash with some defaulting loans. I don't rent, I just sell on owner financing... the notes I have vary between 8% and 10%.

I don't like NODs for many reasons... First, we get about 700 to 800 notices a month. We have as many investors in the local REIA club who market, door knock, calls them. I also don't like having to spend the money to bring their loans current, paying them to move, and fixing up the place. I do not have the cash to go after them yet.


Don't take me wrong, I will definitely go after NODs, Expireds, FSBO, FRBO in the future... but I have enough leads right now that I do not need to target them yet. Once I change my investing strategy, or max the return on my current marketing, I will go after them. But right now I don't have the need to *yet*.

I will probably go after Expireds first before NODs with strong copy (letters/post cards).

Yeah I hardly ever get any 120 000$ homes in my area that aren't 2 bedroom / 1 bath homes that almost nobody wants to buy....

That isn't to say I won't do subject to in the future, just isn't the time for me.

That's what sucks about living in large metropolitan areas, it is extremely difficult to get a house that positive cashflows with the mortgage payments.


Here in Montreal, my target market area has around 2 million people, and there is only 130 defaults a month. So it's really easy for me to filter the NOD list and send direct mail / telemarketing to that list.

Also there are only about 2 other investors that send direct mail to this list and about 4-5 others that are doing telemarketing as well but they all suck.

I guess I'm pretty lucky.

[Doug Pretorius]

It's the same here in Kitchener-Waterloo, very little competition. I only do lease options so you and I work very different segments of the market. For example I don't like to deal with people in default, they don't make good candidates for 'partnering' on a L/O.