Im new to the wholesaling scene but have been doing alot of research and study as to how to get started. I believe this can be done full time and Im tired of watching videos its time to do! So if ANYONE has ANY information, pointers or suggestions PLEASE feel free to point a guy in the right direction! Im attempting to put together my first direct mail campaign. Its my first go so any help is welcomed and appreciated, best lists to look for, postcards or yellow letters etc.
Thanks To Everyone In Advance!!!
Hello @Edward Emerson !
I understand you have done a bit of research on direct mail, however it is still a broad subject to give recommendations on. I'll give it my best shot!
Direct mail tends to work best when you send a campaign of 5-7 different pieces, 4 weeks apart from each other. Follow ups are key as the average person takes 3-5 touches before picking up the phone to respond. That being said, you should set a quantity of mailers each month that you think you could keep up with the phone calls.
There are two things that you should ask yourself that will help you determine your mailing quantity:
1) Your budget
2) Your ability to handle the calls
It might help you to answer these questions if you had an idea on what to expect in respect to the response rates. Here are the average response rates we have seen based on our customer feedback as well as our own mailings throughout the years:
Yellow Letters- average response rate of 8%-9%, all kinds of calls (angry calls, curious calls, tire-kickers, quality calls)
Typed Letters- average response rate of 8%-9%, all kinds of calls (angry calls, curious calls, tire-kickers, quality calls)
Postcards- average response rate of .5%, mostly quality calls.
Zip Letters- average response rate of 2%, mostly quality calls. (Great for follow ups)
Greeting Cards- average response rate of 2%, mostly quality calls. (Great for follow ups)
Once you have an idea of your budget, you can start gathering a list of potential sellers to send mail to. Some folks will pull specific lists (divorce data, tax delinquent, probate, etc.), others will pull an absentee list, and some will go the extra mile and gather a D4D (Driving for Dollars) list. Personally, I like to pulling absentee lists, but I like to add in some owner occupieds as well. I am most comfortable with Listsource to pull the list.
The following is the criteria I like the most:
30 Plus % of equity
5 plus years of home ownership
No trusts unless in a high trust state
Single Family Residences
Accessed value not to exceed the area’s median home value.
50% Owner Occupied
Hope that is helpful!