A lot of people looking for deals that use this site seems to use direct mail. There are many ways to find deals. I've always cold called and gone to foreclosure auctions but the overwhelming concensus on this site says direct mail is the best. Is it true that it works that much better than every other method?
Cold calling and foreclosure auctions are very low cost methods and direct mail seems to be very expensive. Everyone says it takes repetition and 5-7 sends to really kick in. It just seems like you have to spend a ton of money to get a deal. Does it really pay off?
Also, it seems if everyone is doing direct mail it would make it less effective because it becomes deluded. Does that seem to be true?
Driving For Dollars and Bandit Signs are also great ways to find property. Some of our best deals that we buy are from other wholesalers doing these methods.
I have heard mixed opinions. Some of my colleagues say that direct mail works, you just have to budget for the marketing expense and be patient and consistent.
Others say the same about door knocking and cold calling. In my experience, both are successful methods, but you absolutely have to have a long-term gratification for BOTH methods.
Don't expect to find good properties overnight either way.
In my opinion it is an excellent funnel. You are able to target the type of sellers that you want to market to. These would be owners of vacant homes, equity owners, out of state, etc. When you consider how many deals it will take to pay for direct marketing all year long, better yet to cover one mailing, it's pretty inexpensive. Time is money and I would rather have targeted prospects contacting me so that I may expand and replicate other money making activity, in your case auctions or cold calling. Spending the time it takes to get enough lead volume to produce a deal can be a pretty serious grind.
In regards to your comment about number of contacts with a seller, yes evidence supports that most sales occur after several contacts, so yes it would be an ongoing expense. The good news about this though is that if direct mail is being utilized in your city (it is), from your very first mailing you will be kind of "piggybacking" on others' mailings.