DENVER CHALLENGE TO DEAN AND MATT!

You need to talk to Michael Mangham. He's in your neck of the woods and seems to be doing great. I'm surprised you haven't crossed paths.

How come you have not called me? You know I do deals here in Denver. You know in most cases I use my buyers money to cover the EM.

Here are some things I have noticed. I go to all the local REI meetings and I never see you there. You need to go to everyone you can. I know some of these meetings are all based on trying to sell you coaching or talking about strategies we already know. GO THERE FOR NETWORKING!! You will run into people that are doing deals and looking for more deals. There you will find wholesalers that have deals. This will help with your lack of inventory. Negotiate a co-wholesale deal with them! (I have a couple of properties myself that I would co-wholesale with you)

On your mailers: Are you sending out follow up letters? Research shows you need to put yourself in front of the seller 3 times. Mailers work, this I know. 90% of the wholesalers that are getting off market deals are using mailers!

Buyers: We just sold a property to a buyer that we got off of the 90 day cash solds list supplied by our agents. The prices are crazy in Denver right? You have to pay a lot to get one right? Your buyers list of investors won't pay the high prices because the numbers don't work, right? Adam, SOMEONE IS PAYING THAT MONEY!!! Update your buyers list with buyers off the 90, 60 or 30 cash solds list that you get from your realtor. New buyers that are paying all the money!! THIS WORKS!! The guy we just sold a deal to in Aurora paid $185,000, unit needed $20,000 rehab with an ARV of $215,000. GO FIGURE??!! We got the deal from our pre-foreclosure marketing and made $5500.

Also, Denver is tough, how about the rest of the country?

My club meeting is tomorrow night at Red and Jerrys - Sante Fe and Oxford. Pine Financial has their meeting tonight at the same place. 2 meetings in 24 hours you should attend if you can!

MLS offers: We close MLS deals all the time through contract assignments, no need to double close! We offer on listed estate sales and those that need work that are listed by individuals. Not doing to much on REOs right now. The banks have them listed too high and there is a ton of competition.

Tip: If something is not working, modify it or go to a completely different strategy!

Talk to you soon,
Michael

Michael, would you feel comfortable divulging your monthly marketing budget? The wholesalers I know using direct mail average 2,000-2,500 pieces per deal. Last year one sent out 88,000 pieces of mail and got 40 deals, the other sends 20-22,000 pieces a month and gets 10 deals.

The money you spent on marketing you could of worked the MLS with the 25/1 strategy and gotten and deal that way, in most case $500 should be good for EMD, unless is a HUD then $1,000. Also you can try working expired listings or probate properties. I know there is someone in Denver wholesaling, I'm sure of it. You just have to figure out what works in that market, or just look to start working a different market.

Tom,

We average about 1 deal out of 500 mailers. we do 1500 or so a month. These are targeted to specific types of motivated sellers. We are moving more and more to internet based marketing. We are spending around $2,000 a month on mailers ( cards and postage), bandit signs, business cards and websites. We are looking to expand this amount by at least 50% this year. Even then, that is not a lot of money. Some of my competition spend 5 times that amount!

Reynold,

We offer on the MLS all the time. We do the 25/1 system religiously. Week in, week out. However, we get our most profitable deals from unlisted motivated sellers. Two deals will pay for a years worth of marketing! So we do both, MLS and unlisted seller marketing. You should do the same as soon as you can!

Michael