So as a real estate investor you should be on plenty of people’s buyers lists if not just to see properties or to see how the market is, but also to get ideas for your own personal marketing. (In fact you can even join mine for this very reason right here) You can also see some of the things not to do in your emails! I got an email recently that is so absolutely terrible I had to share it with all of you and point out what is wrong with it piece by piece…
What it do Ron how are you this here is A_____ W_____ the memphis,tn Wholesaler. I have great news!!!! for you i located a great investment property for you that fits your criteria very well.
GH Tip #1: This has already started horribly wrong! Do not use “hipster” talk in the greeting no matter how cool you are!
GH Tip #2: Don’t get people’s names wrong… I mean seriously my full name is my email address on this list somehow Gregory Leon somehow is reduced down to Ron!
GH Tip #3: This grammar is brutal! Too many mistakes here that are so obvious I don’t need to point them out. Moving on…
The address is 6__9 Coteswood drive memphis,tn 38134 its in a great quiet neighborhood,
GH Tip #4: altered address is just as useful as the one he gave me because… You guessed it he got the address wrong! Always double check your addresses, beds, baths, and lock box codes at the very least before sending out your properties!
Here is all the Information on it:
Sales Price: $72,900
Projected Rental Income: $12,900
Less 6% Vacancy:$774 (GH Tip #5: Don’t put randomized numbers in. Experienced buyers have there own formulas that they use. If they’ve told you to figure in some thing when you send it then go ahead, but don’t randomly cut into their profits)
Annual Operating Income: $12,126
Annual Operating Expenses
Management at 8%: $1,032
Annual Taxes $2,559
Insurance $896
Yearly Maintenance Reserve $720 (<—– another random figure)
Total Operating Expenses $5,207
Net Operating Income $6,919
Cash on Cash Return 9.49% (GH note#1: This one isn’t correct and not anywhere close to a deal for 70% of the cash flow investors minimum I have ever talked to. The closing costs aren’t figured in or anything. Not to mention in a follow up email it needs a new roof is also left out of this equation.)
Value Indicators
Gross Rent Multiplier 5.65
Tax Appraisal $142,000
Fair Market Value(FMV) $129,400
Price per Square Foot $27.38
Replacement Cost $239,670
GH Tip #6: Way too much right here! This is mostly useless stuff that has either been made up or can be easily found by your potential buyer
This property i feel mets your investing criteria its between $56,000- $69,100 After Repair Value(ARV)
The home is rented for $1,075 a month its already rented meaning cash flow from the start.
GH Tip #7: Once again more numbers that contradict what you told me earlier.
GH Tip #8: Don’t try to sell houses for more than the ARV at a cash price to investors especially when they need more repairs! That will not ever work!
If you have any questions please call me at 901-6__-___3
Thanks
Sincerely&Respectfully
A_____ w____
GH Tip#9: Send at least one picture! Also capitalization in appropriate places like oh I don’t know your own name makes people seem not necessarily smart, but not like a moron.
but seriously before you blow all of your newfound “wealth” think about this… Would you like to get a check like that every month at least once a month for the entire year? Wouldn’t you like to be able to do your Jim Jones impersonation all year long by having a few thousand dollars of extra money a month? Then my advice to you is to take action and either buy a course you like and use it to the best of your ability, or hire a coach/ mentor whatever you want to call it that you think would suit you.
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