i am in the process of setting up a new trust and soon organising finanace
next step im lookong at ways to purchase an ip at good value
as an ex realestate agent i want to use my skills to apparoach potental vendors who are thinking of using an agent
i am thinking of doing letter drops to target homes in a certain area
The good thing is the vendor
1) will save on agent fees
2) wont have to spend on advertsing
3)wont need to have opensOn another point if the right home suits my needs i can purchase a home at better value
which means better entry cost and more return for mewhat do you guys think
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Great in theory, just making it work in practice is the challenge. Response rates from letter box drops are very poor and private sellers in the present market are mostly dreaming about their price in my experience. I have found better reponses from warm contacts, such as door knocking and talking with property owners directly.
I am a little confused John. Are you approaching homes as a buyers agent (with client agency agreements in tow) or as a selling agent hoping to snag a sale?
Either way, letterbox drops do have a low hit rate.
I think as a private buyer Scott, at least that's the way I read the initial post.
hi scott and andrew just as a private buyer
used to work in real estate and this worked well
but there are always plenty of people who want to sell there holandrew there will always be vendors.who want drug.money for there.home but there.also people.who want.a.quick sale
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Jpcashflow wrote:hi scott and andrew just as a private buyer used to work in real estate and this worked well but there are always plenty of people who want to sell there hol andrew there will always be vendors.who want drug.money for there.home but there.also people.who want.a.quick saleYes that's true, they are definitely out there. Challenge is finding them, in terms of letter box drops specifically here's some data from a recent campaign of an investing colleague.
drops approx: 4k to a targeted geographic area
responses: 5
buys: 1Now that was an excellent buy by the way, would need a lot more data to be specific about anything but yes there are deals to be found always.
hi andrew
it depends on the area
in weribee and wyndhamvale the areas targetingfor every 100 hundred dropa i wouls usually get a couple of calls.because its a high turn place
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
is that the sort of place youd want to buy in?
why not!!
– high rental demand
– alot of properties to choose from
– one of the fastest growing councils
– different type of homes to cater any one needsJpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
but why is it high turnover?
hi paullie
good question alot of factors
1) low entry for first home buyers then the young couples have kids and want bigger homes
2) also alot of first home buyers in the area have kids at a young age two wage couple go into one so they sell and move on
plus the biggest factor is divorce and seprarionJpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
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