Third Direct Mail Campaign

10 Replies

Here are the details on my third direct mail campaign:

- 1,000 professional letters with company logo as header and logo plus address as footer.

- In this message I explain what I can do for the seller- Clean Out Services, Donation of Belongings, Hire Moving Trucks, Removal of Unwanted Items. Also, no need to make any repairs, we buy as-is.

- Used A4 envelopes off Amazon, about 1,000 for $50. Paper is under 1 cent per sheet.

-Plus placed a business card in each envelope.

-Total cost is at 55 cents per mailer, 50 cents for first class stamp.

-Still did it in-house, but now I listen to BP Podcasts while doing the monotonous stuffing, sealing, stamping. No longer a complete brain drain since I'm learning while doing this simple tasks. Definitely took some time though, I'd say about 10 hours straight on a Saturday from 3am to 1pm, with short breaks here and there. Definitely giving up my social life at first, but that's ok until I get this marketing machine up and running.

-Results: So far still flirting with about 1% response rate from 1,000 pieces. Of that 1%, only 1 qualified lead who owns a few houses we are interested in. Older Investor who is looking to 1031 into some new properties and bought back in the 80's. Homes are owned free and clear.

-Results from all 3 campaigns: each campaign netted about a 1% response rate, but some of the leads have been quality. Two leads total have been quality- bought 20 to 30 years ago so high in equity, both sellers own multiple homes in our farm area that meet our criteria. Now it will just come down to building the rapport and negotiating at a price that nets our desired cash flow.

Thanks for reading. Will update in another month or so.

@Eric James nothing yet. Absolutely going to increase next round. Maybe 1500 to 2000. I actually enjoy hunting for properties, and know at one point all the work will pay off. With one deal whether it be a buy-and-hold, flip or wholesale will make all the effort well worth it.

@Ken Nyczaj great job on the direct mailers and welcome to BiggerPockets!!  You are definitely taking the exact same steps I took when I first started out back in the late 90s.

I've spent years perfecting and sourcing undervalued property for immediate resale.  Throughout my years, sending offers to owners directly has yielded me the most success.  

Keep at it.  Real estate is a numbers game.  The more offers you send out, the more interested sellers you'll find, and the more deals you will close.  It's really that simple.

I'd be happy to help further. PM me at your convenience.  Good luck to you and once again, welcome to BiggerPockets.

Originally posted by @Jack Butala :

@Ken Nyczaj great job on the direct mailers and welcome to BiggerPockets!!  You are definitely taking the exact same steps I took when I first started out back in the late 90s.

I've spent years perfecting and sourcing undervalued property for immediate resale.  Throughout my years, sending offers to owners directly has yielded me the most success.  

Keep at it.  Real estate is a numbers game.  The more offers you send out, the more interested sellers you'll find, and the more deals you will close.  It's really that simple.

I'd be happy to help further. PM me at your convenience.  Good luck to you and once again, welcome to BiggerPockets.

Do you mean you mail out $ amount offers? I think I once read on BP of someone who mails out actual purchase contracts with $ offers.

@Ken Nyczaj That is some great consistency. Are you revisiting any addresses on your mailing list? I hear that once they have something from you for the 3rd time, they are more likely to respond.

Also, where are you getting your DM list from? Are they high equity leads, driving for dollars, etc.?

Good luck and stick with it!

@Jack Butala thanks you for the encouragement jack. We will catch up after the weekend.

@Eric James good question. I am interest if @Jack Butala does mail out his actual offer price. I would rather negotiate in person. For the two sellers I’m building rapport with offer price has not come up so much. I’d rather get to know them, learn from them and negotiate after establishing a relationship. They are educated landlords so I feel it’s a better approach than to start throwing out offers. A distressed seller with equity is a different story, an offer may be negotiated on the phone.

@Ryan Blake yes. Sending letters to same individuals and building upon last list sending introduction letters to them. I’ve been scanning parcel by parcel for potential equity looking for sellers who bought in the 70’s, 80’s and 90’s. It is time consuming but I feel like if they don’t have equity you most likely won’t be able to buy a cash flowing property even with negotiating a short sale, at least in my area where average home values are over $200,000. Doing some driving for dollars too, but if you drive for dollars and it’s a distressed house (lawn not mowed, bad roof etc), but they don’t have equity, do you really have a deal?

Do you have a full time job? As you mention, searching out individual properties can be very time consuming. You can purchase a list where you can mix and match search criteria such as:

Absentee and/or owner occupied, purchase date (length of ownership), equity (loan to value/LTV), home value, number of properties owned, owner age (think seniors), home value and single, multi, condo.

This can save time and help you reach motivated sellers that you might not come across on your own.  

@Chrissy Arnold thank you for your response. yes I do have a full time job- outside sales selling capital construction equipment.

I’ve looked into purchasing a list. Lists seem to add on anywhere from 20 cents to 50 cents per lead which can practically double my costs. Plus I don’t need to keep refreshing lists every six months like some companies have mentioned they do.

I make my list, keep it in a spreadsheet and then mail merge. When someone calls they get transferred to a follow up list if they’re are a prospect not a suspect.

Only scrolling through parcels in neighborhoods I’d like  to invest in means I shouldn’t be missing any properties.

As for the time, yes it is time consuming. Eventually it will need to be outside sourced but for now I don’t see the need. It’s not like I’m wholesaling for a job, I have a well paying job, I’m marketing for buy and holds and fix and flips. Any excess will be wholesaled.

Way to go.  I admire your drive, persistence, and positivity.  I also liked hearing how you multitask and listen to BP podcasts while you work.  

Way to save on your mailings!  Inexpensive methods.  

As for your numbers of

mailings and response rate - wow.  I would have thought your RR would have been higher.  That’s a lot of mailings.

I have not mailed anywhere near that number.  I have switched things up and gone with generic greeting cards, insides are hand-written and personalized to seller.  It asks if they’re interested in selling and to contact me.  Cards were free (the best, right?!) so I only paid for postage.  Thought I’d try something novel.  Results are still pending.

@Dave Rav Thank you Dave, my one unfair advantage may be my optimism, and ability to forget about things that suck.

Yes my response rates are low, but there have been some very strong leads. I received an email this past weekend from another investor who owns a group of properties, some SF and some small MF who bought in the early 90’s who most likely owns at least a few free and clear. This opens the door up to not only negotiating a fair price and financing with a bank, but the possibility for seller financing as well.

With a total of about 2,000 mailers sent this year, I’ve had about 30 phone calls and of those 30 phone calls, 4 have been investors with equity who own multiple properties that are looking to sell eventually. 2 have been other investor/buyers asking me to send deals their way if I find anything. As of now, 0 deals have been closed, but that’s ok, I just found out about BP 7 months ago and really started to become obsessed 4 months ago. Before October of 2017, real estate investing had never been on my mind.

I’m going to view them this weekend and hopefully something comes of it. Stay tuned...