Marketing - does it work??
In developing my start strategy for finding fix and flip properties, I see and hear a lot about using marketing as a strategy to find off-market properties. Sending out mailers, voicemails and email blasts just seems to be such a low percentage strategy. I was wondering if some experienced flippers wouldn't mind chiming in on whether the effort, expense and time is actually worth it or not. Does it actually lead to solid leads and ultimately deals? If not, what are some of the best ways you've found to find those properties that lead to deals?
Thanks so much!!
Hey dude!
I'm not a fix/flipper but we do a lot of fix/holding. We've gone the whole direct to seller route (sending mailers, texting, cold calling, etc.) and did see results with it. However, my warning is that you're going to dump a lot of cash into it before you see a return.
My recommendation is to start cold calling agents with listings that have been on the MLS for over 30 days. There are plenty listings out there that meet that criteria right now (and at least you'll know that your efforts are hitting motivated property owners). If you'd like to spend some cash, I'd recommend checking out Ryan Dossey. He puts out a lot of great content on the direct to seller route... If it were me, I'd get my feet wet with some agent cold calling before spending a few grand on some learning lessons!
Great advice brother! Thank you!!
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
I spend a lot of money in cold calling and data.
Good question @Chris Kasteler,
It's hard to say sometimes, we've sent mailers out and then didn't hear back until a year later. Other times we got deals from just conversation with contractors who had family trying to sell or a relative passing away and they didn't want the property. I've had deals come my way from businesses that were not real estate related.
So I think at the beginning of creating these funnels, tracking and documenting your data and strategies will be very important. We track a lot, from when the mailers go out, which phone number is on the mailer, what color envelope we use, hand written letters versus typed, yellow pad versus white paper, and everything in between. We've used VA's for cold calling versus us doing it alone.
Mailers take the longest to hear back from but are cheaper. Cold calling is quick but it costs more.
But if you are just sending random mailers and calling random people, you'll waste a lot of time and money and won't close on anything. The better you are at identifying motivated sellers, the more effective your marketing will be. Find a way to find these motivated sellers and you'll have a higher percentage of closing. That would be my bigger focus than mailers versus phone calls.
Hope that helps!
Quote from @Chris Kasteler:
In developing my start strategy for finding fix and flip properties, I see and hear a lot about using marketing as a strategy to find off-market properties. Sending out mailers, voicemails and email blasts just seems to be such a low percentage strategy. I was wondering if some experienced flippers wouldn't mind chiming in on whether the effort, expense and time is actually worth it or not. Does it actually lead to solid leads and ultimately deals? If not, what are some of the best ways you've found to find those properties that lead to deals?
Thanks so much!!
It works, if you work it. It requires solid systems and consistency. Some mass mailings don't produce results for a year or more. If you aren't willing to put in the time and money to see it through long-term, then don't bother starting.
I tried cold-calling once. I called every storage facility in my area (no more than 30 of them) and asked if they would consider selling. Most said no. A couple were angry that I even called. One said he was interested, really liked my offer, then ghosted me. One said they may consider selling in six months, so I called them back after four. He said they still weren't ready. A month later he called and said he was ready to talk. Long story short, I negotiated a purchase and it's my best-performing property ever. I plan to do it again in other markets when time permits.
