Direct Mail - Follow-up on lead that I will not make an offer on?

Question

Hi Everyone:

I have been receiving some leads in response to my direct mail campaign for vacant land.  As important as it might be to know what a GOOD deal looks like, I would bet dollars to doughnuts that it is just as important to know what a BAD deal looks like.  Frankly, a lot of BAD deals have been coming through my pipeline, but I remain hopeful for the needle in the haystack to finally appear.

My question has to do with best practices for following-up with owners that have properties that I have no intention of buying.  If they contacted me trying to sell their land, but it does not meet my land use/zoning requirements, should I just ignore them?  Or should I send a letter to the landowner letting them know that their property is not what I am looking for and to keep me in mind if they come across any other properties that are closer to my criteria?  The individual I am referring to contacted me via telephone, if that makes any difference.

I feel like the fact that I received a response from this person is somehow valuable in itself , but I am not sure if the follow-up communication is even worth it or necessary.

I would love to hear your thoughts.

James

Account Closed · Answer

@Mike Cumbie That is a great suggestion!  I have never thought about that strategy.  I have thought about getting by broker's license and can easily do so in Maryland.  I purchased the materials to study and all that would be required is for me to sit for the exam ... I would not have to take any courses.  But, I have decided to put it off until I get a few transactions/deals under my belt.

Mike Cumbie · Answer

Hi Account Closed,

Congratulations on getting a response. If I was an attorney, I would get my Real Estate license (I believe in NY they just need to file for some chump change).

Then whenever you get a response to something you don't want to buy yourself, you can give a referral to another agent and then get a referral fee sent back to you if they end up listing it.

For instance if you were in my area and you had one you would just call me "Hey Mike call John Smith on 123 Main street, they want to sell". I would do all the sales stuff and if it sold we would send you a 25% referral fee. Of course I could only send a fee to another agent.

Just a thought and good luck!

Account Closed · Answer

@Kyle Ferguson thanks for the suggestion!  I am sure that the land could be useful to someone with more experience.  The owner has two parcels totaling roughly 8.5 acres, but it is zoned Resource Conservation.  Best case scenario, talk to him, leave it on good terms, and perhaps one lead will 'lead' me to another.  Thanks!

Kyle Ferguson · Answer

I have thought about this same thing a lot and originally, I did not call people back if their land did not look good for our needs. However, in one situation, I thought I should call the landowner back anyway, out of respect, even though their land was not so great for the projects that we wanted to do. It turns out that the landowner who I called back, owned another piece of land that did meet my specs for a solar project and it was well worth the callback.

It does not have to be at the top of your list but I always think it's worth talking to landowners. If their piece of land is not good, they may know another one that is good for your use or that landowner lead may be valuable to another real estate professional.