Rental Property Investor · Hyattsville, MD · Member since 2017 · 48 posts · 8 votes
Hey guys, my name is AJ and I’m a real estate investor in the Maryland market. I am currently using direct mail marketing to attract motivated sellers. It seems that my market may be a terrible market after seeing what most people had to say about it in the BP forums. I have not gotten any response from my direct mail. I’ve sent over 1,000 letters to Pre-foreclosure homeowners and absentee owners.
Now I was looking to maybe start looking at other markets. Would it be wise to start investing in an out-of-state market on my first couple investments?
Eager to read what insights you guys may have about this.
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y
Fyi, it is illegal to used targeted marketing to people in preforeclosure in Maryland. I believe the penalties run $5,000 per marketing piece and up to 3 years in prison. So I would suggest going a different route.
Residential Real Estate Broker · Miami, FL · Member since 2014 · 214 posts · 106 votes
8y
I would pick 2-3 metro's that interest you the most and hire realtors in all the markets to find you deals. I don't know how much the direct mail campaign is going to work for you in this market.
Make sure you focus on investment agents -people who can rattle off ROI/NOI numbers on properties like its their birthday.
Trust me, those agents will work round the clock finding you deals and save you a ton of time! (which, at the end of the day, is your most valuable asset!)
Rental Property Investor · Hyattsville, MD · Member since 2017 · 48 posts · 8 votes
8y
@MarcMiddleton Thank you for the great response. I am curious on your stance on direct mail marketing in today’s market though? Could you elaborate on that?
Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
8y
Real estate markets are hyper-local. What works in one market may not work in another (i.e. direct mail). I suggest you narrow-cast your marketing a little more, just saying "Maryland" is way too broad. Are you in Baltimore? The DMV? Eastern Shore?
Investor · Grasonville, MD · Member since 2017 · 453 posts · 415 votes
8y
@Adeiza Jatto stick with it. I’d say responses may not start coming in until your 3rd 4th 5th round of DM Campaign. The objective is to outlast the competition, only a few continue to market while others stop marketing, and that’s when you get the deals.
Residential Real Estate Broker · Miami, FL · Member since 2014 · 214 posts · 106 votes
8y
Given how long it can take for the payoff, (5th round?) you could have scooped up a bargain elsewhere from a motivated seller, an HOA under law suit that's almost finished, a pre-foreclosure, an actual foreclosure, etc.
The time and money it takes to try and get 1 seller that 'might' give you a bargain.
Again, I can't speak to Maryland Real Estate. Ken is from Maryland, maybe its more common. In Florida, its few and far between, but we are in a very hot market though...
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y
Fyi, it is illegal to used targeted marketing to people in preforeclosure in Maryland. I believe the penalties run $5,000 per marketing piece and up to 3 years in prison. So I would suggest going a different route.
Specialist · Branford, CT · Member since 2018 · 222 posts · 121 votes
8y
MD is a pretty competitive market, so the Absentee Owners might already be getting several offers every month from other investors. If you want to stay local, you might consider working with a list broker who can offer some suggestions.
If as @Russell Brazil says that Preforeclosure is off limits for MD, then a good alternative is people with low Financial Stability Scores (FSS). These are not credit rating derived, so there are no restrictions to their use. Of course, as with all mail campaigns, you should never have wording in your mail piece that indicates that you have personal information about them or what you used to pull the list.