Let me try to cut up your question in a few different areas for reply. First off, on spotting the ugly houses and making offers on them I'm not at ALL a big fan of that! However, I'm VERY interested in direct mailing to the owners of those properties to find out if they want to sell.

Let me go further with this and it may answer some of your questions as a whole. Personally, half of my wholesaling biz is down in the junkers. Less competition and quick/easy money. I mail to absentee owners of properties in my area twice every six month period with a letter and a postcard at single family houses and duplexes only "assessed" at $60K and under.

From my mailings, the leads will be generated. Now, I have absolutely NO idea all the characteristics of your market. For me, I'll mail 300 letters getting 10 calls of which I pre-screen three for true motivatation going to physically look at those three making offers on all and one deal get accepted that I wholesale for $2-$3K. Doesn't sound too glamarous but it isn't chump change either when I average duplicating it 5-8 times a month.

The other two offers that didn't get accepted at the time go in my tickler file and every month they get a letter or postcard to follow up with them FOR A YEAR! I get half my biz from effectively following up on properties I've previoiusly made offers on or the sellers showed geniune motivation.

I hope that answers some of your questions. Please let me know if you need a follow up post.

Sincerely,
Scott