Should newbie go all in with DM? Have savings, lots of free time

6 Replies

Hi BP, I'm new (have been a BP listener since 2015 though) and I'm fully committing to RE now, through wholesaling. Still in school but finishing part time to be able to give more focus to RE. The goal is to hopefully gain real traction in this as a business before graduating so I can stick with it full time.

I have enough savings to do some heavy direct mail campaigns, but of course the fear of my inexperience leading to losing it all without a done deal is holding me off the trigger. 

What would you advise?  

A part of me is saying if I'm too scared to take the full leap on a 9-touch direct mail campaign with a couple big lists, then I don't have what it takes to make the risks necessary to succeed in real estate or business. 

The other part is saying don't be stupid, respect what's at stake here and try to go about it smarter. ie: leverage my free time more by curating the lists down a lot and hyper targeting the homeowners likely to be the most motivated. That I can viably direct mail a small list like absentee owners with code violations over and over and squeeze a couple deals out of it, without spending $10k or more. Supplement with time intensive marketing strategies like bandit signs to affordably increase deal flow, too. Then scale up the direct mail as I get more experience and funds. 

This ^ seems like the sensible approach to me but I lack the data to know if massive volume (thousands of addresses) is mandatory to statistically close deals through direct mail. Can deals be done with 200-500 addresses if they are highly targeted?

What say you BP members?

Trying again for a post or two! Not gonna give up here!

I know statistically I'm one of thousands of faceless wannabe wholesalers that come and go over the years. I've been studying hard the last 8 weeks and have let go a well paying en.gineering job (I have the confidence that I can get another if need be). I've listened to over 200 BP episodes since 2015, and countless other business and marketing podcasts. Countless business and marketing articles. Several books. Several meetups. 

I'm very serious with real estate investing and treating it as a business with the intent to scale :)

@Mark B. go highly targeted like you're saying, and target leads that you don't believe are being competed for heavily. That may mean going for a different market, and/or alternative asset type. You don't want to compete right now, especially when you're so small. You want to be different.

Get that list of the magic 500 leads. Send a HIGH quality, unique mail piece with a personal, well thought out custom message. Also, call these leads, try ringless voicemail, and send them text messages . all on alternate cadences. Direct mail will be your highest rate of conversion, but the other approaches taken consequently will rapidly build familiarity with you and your brand & get your leads to start calling you sooner rather than later. People have to know and respect you to call you and give you their business. 

Messaging deserves one more mention here. You need a STRONG message that is meaningful to your prospective sellers- delivered consistently, through multiple marketing vehicles, frequently and consistently.

Originally posted by @Elliott Elkhoury :

@Mark Boudreaux go highly targeted like you're saying, and target leads that you don't believe are being competed for heavily. That may mean going for a different market, and/or alternative asset type. You don't want to compete right now, especially when you're so small. You want to be different.

Get that list of the magic 500 leads. Send a HIGH quality, unique mail piece with a personal, well thought out custom message. Also, call these leads, try ringless voicemail, and send them text messages . all on alternate cadences. Direct mail will be your highest rate of conversion, but the other approaches taken consequently will rapidly build familiarity with you and your brand & get your leads to start calling you sooner rather than later. People have to know and respect you to call you and give you their business. 

Messaging deserves one more mention here. You need a STRONG message that is meaningful to your prospective sellers- delivered consistently, through multiple marketing vehicles, frequently and consistently.

Thank you Elliott for this response!  

Funny you mention leveraging these other phone based marketing strategies too. I had the intent on supplementing my direct marketing by sending video text messages to prospects. The idea being to go as far as I can with building trust and differentiating myself from other sellers. A lot of business sources I've consumed recommend doing things "that don't scale" as a competitive advantage over the big players in a niche. And I'm in a super competitive market so I'll commit to testing these recommendations!

@Mark B. Spend your time making a super strong lead list and then create a multiple touch point marketing strategy (DM, RVM, Text, Email ect). As I am writing this is see that I am repeating a lot of what Elliott had to say but start small and then scale what is working. No need to get in over your head unnecessarily. Give me a call if you want to chat more. 

Cheers,

Originally posted by @McKinley Crowley :

@Mark Boudreaux Spend your time making a super strong lead list and then create a multiple touch point marketing strategy (DM, RVM, Text, Email ect). As I am writing this is see that I am repeating a lot of what Elliott had to say but start small and then scale what is working. No need to get in over your head unnecessarily. Give me a call if you want to chat more. 

Cheers,

 Thanks! So that makes two recommendations for starting small, super targeted, and leveraging all marketing avenues.