Direct mail - How would you write it

12 Replies

First I'd like to say how much of a help everyone on here has been. Thanks everyone!

Anyway, I have learned through you guys that a good method to find a deal is by compiling a list of properties in my niche and area that I would be interested in and directly mailing them asking them to sell. All the properties I selected are NON owner occupied, 2-4 units, <90% mortgage paid off.

I got a list together, and I'm a little stuck as to how to write a message. Should I ease into it? Try to be convincing? Just flat out ask if they will sell?

Should the message be printed as a post card or as a letter in an envelope?

What has worked for some of you?

Just get to the point. I just say, hi I'm Brian, I buy houses, I'd like to buy your house. A little more detail but that's the basic idea. I'll post a copy of my letter for you when I get home.

@Drew Farnese

Keep in mind, you are not going to be able to create motivation in these sellers. Brian L is correct, you need to keep it simple. Just mention the important items: they can sell in as is condition, you make cash offers, you can close quickly.

Also, I sign off with my first and last name. I think that builds credibility. In any other context, you would include this if you're sending someone a letter without every having met them (as opposed to just your first name).

This might also be a given to you, but at the very least, hand write the envelopes. Every handwritten letter at least gets opened.

Hope this helps.

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Originally posted by @Kyle B. :
@Drew Farnese

Keep in mind, you are not going to be able to create motivation in these sellers. Brian L is correct, you need to keep it simple. Just mention the important items: they can sell in as is condition, you make cash offers, you can close quickly.

So that brings me the question - what if I'm NOT making a cash offer? Are investors ever able to buy via seller financing with this tactic of finding deals? I would imagine that lowers your chances. What about conventional financing? Or even FHA for that matter?

@Drew Farnese

It probably won't lower your call back rate, but will most likely lower your odds of closing a deal. If someone is motivated enough though, I'm sure you can make it work. I don't have any experience in this regard though.

@Drew Farnese Nice job getting started. I've bought a lot of houses using this exact method.

I agree with @Brian L. keep it simple and to the point, as in basically them you're interested in buying their house.

I also agree with @Kyle B. to handwrite envelope. I like invitation style instead of #10 business size. And use the crazy collector stamps that cost the same as the normal ones.

I have bought properties with seller financing even when saying I can buy for cash in the letter or on a sign. The main point is to generate a call. Once you're on the phone, you ask questions and try to solve their problem. If cash isn't the right solution, seller financing might be.

Best of luck!

@Chad Carson thanks for the input!

I actually started my campaign and did go with #10 business envelopes. I typically just keep reading and reading and reading and never get to DOING. This time I just went and DID. Got some leads from leadsource and I plan to send out 300 per month, sending to the same leads 4-5 times.

I have quickly leaned how much handwriting my letters SUCKS. I won't complain though. I'll just get it done.

I guess I have a lot of options if a seller is desperate to sell. Just gotta get the phone to start ringing first. Right? :)

I just write
Hi, my name is John Miller. My wife and I would like to buy your house at
123 S Main St.
We can pay cash and close quickly.
Call me at 123-456-7890, if you would like to sell.
Thank you
And sign my name
Hope it helps!

@Drew Farnese

You will learn a lot from all of that doing activity. 300/mo is good. Make sure you track your lead generation results religiously so that you can tweak and learn from different changes (like #10 vs invitation style).

What kind of list did you get?

I have found diminishing returns sending too often to certain cold lists, like absentee owners. Maybe 2-4 times per year instead of every week or month in a row. This spaces out the mailings a bit.

Preforeclosures or expired listings are a different story and need to be more often.

@Chad Carson yes, my current list is primarily absentee owners, 90-100% equity, in selected area codes.

I am certainly going to keep a close track of everything with this campaign.

That is good to know that it may not be advisable to send a second letter to the same owners too frequently. Thanks for the insight!

@Drew Farnese

Got your PM. Thanks. Glad to connect.

You asked me how to handle wholesale leads vs buy-hold leads when calls start coming in from your letters.

I really don't break leads down that way.

Some deals may be a perfect buy-hold or perfect fix-flip, but many could be either. The type of lead depends a lot upon your specific plan and business model at the moment.

So if you're into buy-hold right now, I say just focus mostly on that. You'll understand the numbers and the deal-types better since you've studied it.

Absentee owners with a lot of equity should bring you some motivated, retiree landlords. These could be great seller financing candidates to buy and hold.

But when sellers have a lot of equity, you can also give them multiple offers. So if seller financing doesn't work, they might accept a lower-priced cash offer.

When you do your deal analysis on your cash offer, you can build in a wholesale fee below your normal offer price. That will allow you to have the potential exit strategy of keeping for yourself or wholesaling.

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