what am I doing wrong?

17 Replies

I just started training in March. I've gotten marketing tools out including business cards. Postcards, and ads during April. My goal was to make my first deal in May. Its going on June and I haven't even acquired my first property or any feedback from marketing. What else can I do to actual make something happen? Thanks in advance for any support that's out there.

How many Postcards have you sent?

I sent out the first 50 to pre-foreclosed in targeted zip codes. Another 100 waiting, didn't want to send anymore without knowing that it works.

Hey Tracey tell us more about your goals. What are you trying to do? Are you a wholesaler? I am not an expert in marketing but sending out post cards and yellow letters is strictly a numbers game. You may need to send out thousands to find a few. You may not be doing anything wrong but may just need to send out larger number. 

Originally posted by @Tracey Armstrong :

I sent out the first 50 to pre-foreclosed in targeted zip codes. Another 100 waiting, didn't want to send anymore without knowing that it works.

 Define "pre-foreclosed" for me if you would.  Are these from court filings or a list provider.  If these are properties that have been filed for the June auction, that's on Tuesday so don't bother wasting the postage.  You should be able to get more that 150 per month in Harris county, assuming that's where you are mailing.  Response rate for me sending out around 300 postcards to foreclosure filings in Dallas county is between 1%-2%.  That's 5 or 6 calls, most of which are just calling to yell at me.  I imagine the Houston area would be around that or a little less.

Folks posting here report response rates to direct mail on the order of a few percent.  With just 50 postcards you'll be lucky to get a call.  And it will take dozens of calls to get a deal. 

Many times you have to hit the same person with multiple mail pieces to get a response.

A couple of successful wholesalers I've heard from locally say they spend about $10K a month on marketing.

So, I don't think you're doing anything wrong.  Just not enough of it.

if I may be blunt.  

The only thing you're doing wrong is expecting unreasonable results.  50 postcards is a waste of effort.  

yea i don't think 50 will work.. i heard you get 10 response for every 1000 you sent. Out of 10 only 3 are deal or sth like that

If you're looking for leads via mail you need to be sending out 500 per week, and most people need to get at least 3 mailers from you before they reply. Its a numbers game for sure. 

Keep following up. Follow up more than the other 100 - 500 people in your area doing the same thing.

just to give you of an idea of my "small operation" 3500 for July. 

it's a numbers game. You don't have the numbers on your side, and never hold off on the next mailing waiting for results from the first one. Direct mail is all about being consistently persistent. 

Also...my very best newbie advice...

Don't set goals you can never control. You can never control how quickly or when you get your first deal. The gurus will tell you to employ X strategy or do this and that or repeat the magic words 3 times, whIle turning around counterclockwise...horse hockey!  (In deference to Colernol Sherman Potter!)  

You can certainly do things that will increase your odds. You can send out 3,000 pieces of mail per month and drive for dollars 8 hours a day. But, there are individual human beings with free will receiving those pieces of mail. You don't control them. (No matter what Mr Quarles may tell you about NLP!  Just kidding, Mike.)

Set goals you control. Goals that will increase your odds and put the numbers in your favor. Set goals to send out X pieces of direct mail each month...attend X networking events in the next 30 days...write X offers per week...contact X realtors within the next 30 days. Whatever fits with your strategy, set goals that move you closer to results and increase your odds. 

Do you have a website?

@Tracey Armstrong

I've never done any direct mail, I started out with buy and hold. It took me 10 months of actually looking to buy before I actually was able to buy my first property. And that was on lease option, not an all cash purchase.

Go and go hard, refine as you go, don't quit......

Don't be afraid to try a different strategy if you get to that point, if mailing doesn't pan out, you can employ a totally different path in real estate. It all depends on your drive and determination!!

i want to thank everyone for your responses. They are greatly appreciated. This has given me a much better insight to my next moves. I need to be more aggressive and adjust my expectations. Your responses have truly helped me. 

@Tracey Armstrong there are some great wholesaling podcasts that touch on this. (12 and 22 I recall) You will definitely have to increase what your sending out as well as reach out more systematically to really get people's attention. You've gotten started and that's great, now it's time to really push them out in a higher volume. To find those podcasts I used the search bar and keyed in wholesaling. 👍🏼 I do not have my notes on hand, otherwise I'd share my findings.

If you don't have the capital to send that many postcards purchase from a wholesaler.  You will pay a small premium but its a great way to get started.  

Originally posted by @Mike Osterman :

just to give you of an idea of my "small operation" 3500 for July. 

 Nice I just bought a bunch of those from costco today! Are you running through a printer? We are doing a split test this week with hand written font that my wife did put together. So we will see. 

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