I got my first yellow letter ( follow UP)

16 Replies

Well called the number on the yellow card... No return call that was 3 days ago.

Obviously I would think if your going to go to the time expense and trouble of direct marketing one should probably return calls ASAP.  Its funny how people handle this stuff

@Jay Hinrichs  it's sad really. I follow up sometimes with investors who I mail campaigns out for and it's amazing how many people wait days to call a lead back. Not the best use of their money in my opinion. 

@Tim Leslie 

I think its more common than one would think... Goes to the old rule 10% make 90% of the deals.. And you have to assume if one person is hitting the out of area lists or foreclosure lists or whatever that others are doing that as well so the target seller may get multiple inquires the one that is Johnny on the spot has a huge advantage over the one that calls you back a week later and they can't remember ever making the call to you in the first place :)  Can lead a horse to water but can't make em drink

@Jay Hinrichs  

I remember the days were we on purpose waited to call someone back... Made them call three times to weed out the unmotivated callers. So if an investor is using the strategy then I get it... However they better be doing a ton of marketing...

It is funny how when we need something we will actually let people cut into our personal set of standards by allowing them to do things to us that we wouldn't do to them.

Doctors appointments are a perfect example of motivation taking over reasoning.

@Michael Q. 

Oh yes and then there was the Siding salesmen and the land sales men ( which is what I grew up with) they all had their techniques...

Before the Pre foreclosure business in WA and OR basically became illegal ( still legal in a very controlled environment) I would walk into a home I bought and many times the owner had left a stack of the letters they had gotten through the Foreclosure process I would venture to guess in our market if you had a NOD you got anywhere from 20 to 50 direct mail pieces and in those days the message on the direct mail peice was:

"Hey I have been there 3 years ago I went broke had no money was living on food stamps I know how your feeling but I bounced back and if I can just help you with your situation Blah blah blah  same message 20 different ways.

not sure how many phone calls. We skipped all that we banged on doors I had 3 two person crews working all the NOD's in my 3 county market.. We never mailed to those folks.. We needed to get face to face with them and close the deal.

I got a yellow letter today and called the guy that mailed it out.  He called me back within an hour.  I am sure he is doing well with him campaign!

Like Jay said - 10% make 90% of the money

Too funny @Jay Hinrichs  

I don't think he is going to recoup his YL costs.... lol

@Account Closed  

  or maybe its like Mike Q talked about some won't call you back unless you call them multiple times as they want to make sure your motivated.  Don't think that strategy will work go good these days. Not with hundred thousand BPers out there all learning the exact same techniques.

I don't think too many BP'ers are sending large numbers of yellow letters. I think most areas are not saturated. One of my target areas is hot and property owners get a lot of "I want to buy your house" mail, but most of it is not yellow letters.  Other ares I mail to get hardly any mail. 

Jay, you've owned a lot of homes, how many total pieces have you received?

@Jon Klaus  

  good point Jon.. although my properties are not foreclosures or delinquent in tax's or total rehabs... Just absentee landlord.. But I do get a letter probably every 90 days. on something we have just usually not on anything I really want to sell unfortunately :( .. But it was my first time getting the actual famous Yellow letter that prompted my post.

And the lack of any follow up... which of course you can't close a deal if you never call the seller back I think that's clear... :) And that person never did call me back.

I will tell you on that same property I got the yellow letter the listing expired and I got 5 phone calls and probably 20 letters from realtors.. And all using their own custom version of the Yellow letter.. And all the different pitch's that come along with that type of solicitation. When listing's in a market sell in 60 days or less, then listings are like money in the bank.

I get a small but pretty steady stream of direct mail.  Especially when the towns where I have houses update their assessments.  Pretty clearly the list companies are getting the tax cards and making note of where the owner's address and the address of the property do not match.

I have thought of letting a "wholesaler" make an offer, and responding back with a counter that, with particularly dense legalese, strips away their contingencies.  Maybe insert a performance penalty if they fail to close.  Most of these guys don't seem real sophisticated.  I wouldn't make any money off of them, because they don't have any.  But maybe being on the other side of an unbalanced transaction will cause some introspection about how they do business and conduct themselves ethically.

Originally posted by @Jon Klaus:

I don't think too many BP'ers are sending large numbers of yellow letters. I think most areas are not saturated. One of my target areas is hot and property owners get a lot of "I want to buy your house" mail, but most of it is not yellow letters.  Other ares I mail to get hardly any mail. 

Jay, you've owned a lot of homes, how many total pieces have you received?

 Maybe not, but I have always found the BP hostility to "guru" techniques strange, when the same things are taught here.  The difference is that there is no money changing hands for the coaching.  But fundamentally, what is being taught is the same.

@Richard C.  

I think the hostility towards gurus is the idea of large amount of money changing hands. Thus the value of BP is teaching each other those concepts without requiring your second born to pay for it. More of a pay it forward mentality than take a Rookie for all they have.

I've found this to be pretty common.  I've talked to homeowners that have a pile of yellow letters on their kitchen tables.  Curious as to how I was not in a massive bidding war, I began to ask homeowners how the other investors treated them.  The common answer is that they either never called back or "took forever to call me back."

Common Reasons this happens

  • -No systems in place to effectively answer or return calls
  • -Investor is too busy and puts it off
  • -Investor is satisfied with the good deal they are working on so they put everything else on hold.
  • -Don't get alerts every time someone calls and realize that a 
  • -Some new investors are nervous to call people back or become timid because an angry person responded

Early on, I lost a good deal to another investor because I was going to call the seller "tomorrow", which became 5 days.  I promised myself this would never happen again and put systems in place so that all sellers are contacted within 48 hours of the call - we currently average 2hrs ;)

Bottom line is that every second you wait is another second for them to call someone else. 

@Lamar Cannon  

  Yes its a tough lesson that you usually only have to experience once.

Calling a lead back only to have them tell you they bought or sold to someone else.. 

Answer the phone and you want miss a sale.

Joe Gore

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