Sticking It Out In Tough Times

Marketing Your Property
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Sticking It Out In Tough Times

Sharon Vornholt
Goshen, KY · Member since 2009 · 835 posts · 683 votes

Don't Give Up On Your "Marketing Machine"

I think you will have to look long and hard to find a real estate investor that hasn’t felt like throwing in the towel at one time or another (if they were to be completely honest).

We all have periods of “highs†and “lowsâ€. But, it is vital to get over the “lows†pretty quickly if you are going to succeed as a real estate investor.

To quote Darren Hardy at Success Magazine, “You need to learn to have a faster “nervous breakdown†when you are facing a big problem or simply find yourself up against a “rough patch†in your real estate investing business. Think about it, worry about it (for a couple of hours – not days or weeks), and move on.

I have been doing direct mail marketing in my real estate investing business for a little less than 3 years. It gets pretty tempting to want to give up on this process when you are not seeing the results you would like. But I can tell you from experience that is the last thought that should cross your mind.

I bought a house this week from an absentee owner that I have been marketing to for over 2 ½ years! Yes, that’s right. 2 ½ years! I recognized her name when she contacted me, but I didn’t realize exactly how long I had been marketing to her until I checked my data base. I was so excited to know that my long time marketing plan worked exactly like it should have.

Folks, keep those direct mail letters going out! You never know when todays' "un-motivated seller" will suddenly become a “very motivated sellerâ€.

If you want more tips and information on marketing for real estate investors you can find it on my blog at [LINK REMOVD]

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Eddie Ziv
Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
16y

Uh-huh, Now I know why people keep sending me all that junk mail even though I never respond... You never know, right?
In general, I agree. If it doesn't cost you too much money to run an operation like that, it doesn't hurt. This is like sending your resume to the same potential employer over and over again. You never know when there is opening, right?
I would just say this, if you use the same method and it doesn't work, you have to re-examine it.
It seems to me that someone responding to an offer two and a half years after you start marketing to this person, is an anomaly, not the rule... Yes, it can work but if you rely on that as a business, I'm not sure if this is a good strategy (As only means of marketing, of course)

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  • Mark UpdegraffBusiness Member
    Real Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 701 votes
    16y

    Persistence pays!

    Way to go Sharon, thanks for sharing :D

    Happy Summer,
    Mark

    Podcast Guest on Show #112
    Updegraff Group Realty4.746 Reviews
    WebsiteView Page
    0Reply
  • Sharon Vornholt
    OP
    Goshen, KY · Member since 2009 · 835 posts · 683 votes
    16y

    Thanks Mark!

    Sharon Vornholt

    0Reply
  • Jackie Patterson
    Real Estate Investor · Kalamazoo, MI · Member since 2010 · 681 posts · 241 votes
    16y

    Congratulations! Sounds like you established a rapport, so when they were ready to sell, they thought of you. Exactly what you wanted.

    0Reply
  • Sharon Vornholt
    OP
    Goshen, KY · Member since 2009 · 835 posts · 683 votes
    16y

    Thanks Jackie.

    Persistence really pays off in this business. I buy houses regularly from my direct mail campaigns, but this is a first for me - buying a house after this much time has lapsed.

    I believe there is great value in presenting yourself as a real estate investor that has a real "business". They have more confidence working with you if they view you this way.

    2Reply
  • Eddie Ziv
    Investor · Mableton, GA · Member since 2009 · 1k+ posts · 465 votes
    16y

    Uh-huh, Now I know why people keep sending me all that junk mail even though I never respond... You never know, right?
    In general, I agree. If it doesn't cost you too much money to run an operation like that, it doesn't hurt. This is like sending your resume to the same potential employer over and over again. You never know when there is opening, right?
    I would just say this, if you use the same method and it doesn't work, you have to re-examine it.
    It seems to me that someone responding to an offer two and a half years after you start marketing to this person, is an anomaly, not the rule... Yes, it can work but if you rely on that as a business, I'm not sure if this is a good strategy (As only means of marketing, of course)

    2Reply
  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    16y

    Eddie, I would agree. If I'm getting poor responses from my promotions, I would want to look at the promotions and possibly look at better ways to market.

    Personally, I rarely look at mailers that come to my home especially if the mailer is the same as any other. If I'm looking to buy or sell something I usually go to the places where this can be done or talk to friends, professionals etc for their opinions of who might work.

    I understand the concept of getting your name out and over time people build a familiarity because they see it often enough. How effective is this approach though? I would love to know how well it works for others here. Not being a wholesaler, I have never tried anything like this.

    0Reply
  • Sharon Vornholt
    OP
    Goshen, KY · Member since 2009 · 835 posts · 683 votes
    16y

    I buy houses as a rule every month from my direct mail campaigns to absentee owners. The one I bought after 2 1/2 half years, was just an example of the power of not giving up on direct mail. I expect to make a nice profit on this house when I flip it. It is indeed not as common to buy a house after this much time, but it does happen. Things change for absentee owners over time that makes them "motivated sellers". It is pretty common for me to buy a house after I have been mailing to them for a year or longer. But, I have also bought houses after only a couple of mailings. It's just a numbers game.

    Statistically, your percentages will go up after the frist 4-5 mailings. Vena Jones Cox "The Wholesale Queen" has this pretty well broken down in some of her courses. She too has been doing direct mail for years to build her real estate business.

    I always look at how much I spend verses how much I am making. I can tell you for sure, for every $1000 or so I spend on postage, I am making $7000-$10,000 minimum profit. So for me, it is definitely worth it. It does work for real estate if you have a targeted list and it works very well.

    Another important thing to remember is that you need more than one strategy. Different real estate investors use a combination of different strategies. You need to do what you like and what works for you. Personally, I would rather jump off a tall building than call expired listings or FISBO'S to find a deal. But again, that is just me. I know folks that do those things and like cold calling just fine.

    0Reply
  • Andy More
    Residential Lender · Columbia, MO · Member since 2010 · 90 posts · 26 votes
    16y

    Sharon, how do you send out your letters? Do you have a service that sends them for you? Do you prepare them yourself using the MailMerge functions in MS Office? Or some other way? Thanks

    0Reply
  • Sharon Vornholt
    OP
    Goshen, KY · Member since 2009 · 835 posts · 683 votes
    16y

    I use an Act databse (Office Depot has it) that has mail merge functions. I have had it a couple of years now. I can update the file on each person as needed and send out letters to my list on my schedule. For instance, I will pick my list of absentee owners from California (or whatever state I need to mail) and merge up those letters as a group and hit print. It's very simple. I have all of my "groups" in Act such as absentte owners, probates etc.

    When I enter probates each month they are in a folder for that month. So the main folder would be 2010 Probates. Under that would be all of the individual months ie Jan., Feb etc. If I need to mail one half of the list this month and not the rest, I can do that.

    I am looking into using a particular company to do my mailings at this time. Their sign up fee has come down considerably in the last couple of years.The main advantage to using this service is that they keep your list clean and updated. Also, you can omit certain groups of people such as those that don't have much equity to name just one. I believe I will end up with less but better quality names on my list. I will continue to do the probates myself either way, because I would have to send them the list that I compiled each month. I may as well go ahead and mail those folks. When your list is in the thousands, it makes sense to think about using a service. I am only really considering one company. I believe I can actually spend about the same amount of money using them as I do now because their lists are continually updated. I will certainly post my results if I go down that path.

    We have been doing the mailings for almost 3 years and even though we can do them, it is very cumbersome to send out all the letters. We hand address and stamp them all so they don't look mass produced. It would be a relief to have the work done for me especially if I end up buying more houses in the process.

    0Reply
  • Adura Sanya
    Real Estate Investor · Philadelphia, PA · Member since 2010 · 7 posts · 5 votes
    16y

    Sharon

    what's your response like with your probate folks? i do ALOT of direct mail but i just recently started targeting this niche in the past month.

    so far response has been pretty lackluster, which is fine since direct mail takes while to build. are you sending multiple mailings to them? if so, how often?

    i have been debating this due to the sensitive nature of their situation. it seems like you have a solid system set up, i would definitely love to pick your brain more on the topic.

    0Reply
  • Sharon Vornholt
    OP
    Goshen, KY · Member since 2009 · 835 posts · 683 votes
    16y

    Adura -

    The thing you have to remember about probates is that there is a process involved. Don't get caught up in the statistics.

    These folks are at different stages of the process when they are put into the newspaper. Some people are recently deceased and for some it may have been a year or more. Everyone begins working on settling the estate at a different pace.

    Folks that file immediatey after the death of a loved one, may not actually be ready to deal with selling the property. Also, they may still need permission from the court to sell the house. There are many variables.

    I usually send my first letter about 3-4 weeks after it appears in the newspaper. The response from my first letter or two may not be great. But as time progresses, it will get better, More folks will be ready to sell the property as time goes by.

    I actually get a lot of calls at about the 1 year mark. I mail to probates for about 18 months on the average, some folks a little longer.

    You need to look through each of your lists ideally at least twice a year. It really should be more but I can't seem to get it done. Some of these houses will be listed and sold. Others may be sold to another investor.

    By continuing only to send letters to those left, you will cut your mailing costs. And, you will probably be the only one left that is marketing to them when they finally decide to sell. I have found that some of these folks will decide to keep the property for a rental. After that first tenant has left and has trashed the house, they will become a very motivated seller. So, just hang in there. Keep the letters going.

    0Reply
  • Elisha Lowe
    Homeowner · Philadelphia, PA · Member since 2010 · 123 posts · 66 votes
    16y

    Hello Sharon,

    Thank you for posting this - every bit helps for a newbie. I bookmarked your blog and plan to read when I am off my travel and have down time. It looks very interesting. Would you please tell me if you are able to keep a full time job and wholesale, it seems very daunting.

    Thanks in advance!

    E.

    0Reply
  • Edwin Brown
    Real Estate Investor · Chattanooga, TN · Member since 2010 · 151 posts · 59 votes
    16y

    It really is a matter of how many times you can get back up. Learning to not get knocked down as much is smart, but you can't avoid every punch. It's part of the business.

    0Reply
  • Sharon Vornholt
    OP
    Goshen, KY · Member since 2009 · 835 posts · 683 votes
    16y

    @ Elisha - I had another business until about 2 1/2 years ago. It is more challenging. But, if you take the time to set up systems for your mailings you can do it. Once you get the mailings out then all you have to do is look at houses and make offers in the evenings or on the weekends.

    It seems very daunting until you get a system set up for doing the mailings. That should be your first project.

    @ Edwin. Well said.

    We all have those days when we wonder if we can get up one more time, but we do. With every setback you need to remember that it is only a "season in your life". This too shall pass".

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