Successful direct mailings w/o a cash offer?

Question

Hi all! I’m new to Bigger Pockets/REI, but I’ve had my eye on jumping in for a while. I’m now at a position financially to invest, yet as a look out into the market, the properties in my price range, and limited they are, do not meet the criteria I’ve set (location, cash flow, number of units, etc). Thus insert my idea to direct mail to multi-family’s that could potentially work well; the catch is, I wouldn’t have the cash offer, so often seen on direct mailings, and that’s seemingly the most attractive selling point. Has anyone had success with mailings that would be closed traditionally?

Pratik P. · Answer

I'm finding that most buyers don't care if it's a cash offer or not, so don't worry about not having that in your letters. If they are motivated to sell, set up an appointment, understand their situation and craft an offer that works for both of you, which can be owner financing. Pitch the owner financing part after you build some rapport though!

Account Closed · Answer

@Pratik P. totally agree with the cash offer not mattering. In fact, I've had sellers tell me they actually think I'm the only legitimate buyer because I'm not running my mouth about buying 10 properties a month cash! Being a reasonable human being seems to get lost in the mess of bad marketing advice round here lol.

p.s... when are we going to grab a beer? Or have you stop by the office? We just moved into a bigger space :)

Jay Hinrichs · Answer

they are if its highly distressed property in a very poor area.. owners will do what ever it takes to hope they can sell it.

Pratik P. · Answer

@Jamie Briscoe Yes mailing has worked for me. I've been mailing for almost 2 years now.

Account Closed Man I totally forgot we were trying to meet up! I'll shoot you a PM now

Jamie Briscoe · Answer

Account Closed Thanks for your note, have you had successful mailing? I’m narrowing my list currently so I’ll definitely provide updates if this strategy turns out positive.

Account Closed · Answer

@Jamie Briscoe it's definitely a tough market but if you're targeting off market properties with your direct mail, you have a strong list, a good message, and are mailing consistently I would say most sellers that come into your inbound lead pool won't be pitting you against other offers. It's very rare that my sellers are shopping my offer, and if they are, it's rarely ever a deal.

Your marketing, when done well and consistently, will create opportunities where you're negotiating a deal without competition and GREATLY increasing your odds!

Account Closed · Answer

@Jamie Briscoe don't offer cash. You'd be surprised how many people are totally fine with you buying their property with financing. Just pay them a few more bucks in exchange and close in 30. Easy. This might prevent you from buying really distressed stuff... but you don't have to buy distressed to buy at a discount ya kno ;)

Jamie Briscoe · Answer

@Jay Hinrichs Thanks Jay. Makes sense. I’ll note this one down to investigate further for future!

Jamie Briscoe · Answer

Thanks for your response  @Jay Hinrichs ! Are owners generally open to seller financing? I’m familiar, but new, to the theory and it seems quite uncommon/able to command higher risk for the buyer and seller alike.

Jay Hinrichs · Answer

well it would be a novel approach.. U could have a very small target of properties and ask for owner financing

Successful direct mailings w/o a cash offer?

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