Have a good yellow letter you're willing to share?

Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes

I'm planning to send out mailers to solicit MF sellers in a few different markets. Do you have a yellow letter/mailer you're willing to share? If so, feel free to post it here or send me a private message.

I'd be most interested in letters having an above average response rate >5%.

Thanks in advance.

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Account Closed

Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes

11y

I have a white letter, which has only 4.87% response rate for the Bay Area. So far this year, my partner and I did only three small deals worth over $3.5MM combined, which has built-in equity of about $1.5MM, 70% FMV? We passed on quite a few deals YTD and are currently analyzing another four off-market deals and in talk to buy another trophy property. Given the fact that my letter doesn't meet your requirements, I guess I will not be sharing it. :0)

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Account Closed
Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
11y
I have a white letter, which has only 4.87% response rate for the Bay Area. So far this year, my partner and I did only three small deals worth over $3.5MM combined, which has built-in equity of about $1.5MM, 70% FMV? We passed on quite a few deals YTD and are currently analyzing another four off-market deals and in talk to buy another trophy property. Given the fact that my letter doesn't meet your requirements, I guess I will not be sharing it. :0)
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
11y
@Account Closed
Not a bad response rate. Have you been able to get any of your recent deals to cash flow?
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
11y
@Account Closed
I'm most interested in letters being sent to apartment/multifamily owners.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Jon Q. I am sure you have gotten your share of yellow letters those are minor league letters not appropriate for what you trying to do. @Account Closed Minh eludes to white letters I suspect these are completely the opposite than yellow letters where those try to imitate some mom and pop and writing in their own hand and oh shucks we want to buy your property.. I see those going no where or very little response with more sophisticated sellers.. I get 10 a month at a minimum.
And if I gave you my secret ( well I won't) but there are ways to attract more sophisticated sellers and I have never seen it discussed on BP or even remotely thought of.. but its worked for me for many many years.. so I think I will just keep that pearl to myself.
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
11y
thanks @Jay Hinrichs I've got a couple myself.
But I'm planning to exhaust ALL sources of deals. If an investment of $100-$200 generates 1 decent deal, it would be worth it. All good deals are welcome.
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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@Jay Hinrichs happy to trade pearls. There's more than enough to go around :-)
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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
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Its a shame I didnt save all the ones I get sent , it would give you an idea what a bad one looks like .
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Jon Q. Jon don't think 100 dollars worth of letters will do much.
you have raw newbies who know no better going into debt thousands to send these letters and never make a deal.. same people rip gurus for over charging or mentors for charging.
You have all these folks that don't even know what to do with a lead spending money sending out this stuff ... when if they were smart they would spend that money getting a RE linense and learn the business and become a RE professional than a wanna be investor wholesaler with no money and what ever credit and money they had just went up in smoke sending out letters with no ability to follow up or keep the campaign going there is no doubt you can get business with direct mail but most don't understand its a multi year commitment and many thousands of dollars. if you just blow your wad and your done then you will be broke and done and off to your cube to work for the man LOL
PS I don't send out colleague request as I don't know how to do that I only accept them. I have never asked any one on bP to be a colleague and will not go through the learning curve with you.. if you want to be a colleague you need to send me one.
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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@Jay Hinrichs
The next letter might be from me offering a private jet + cash in exchange for your deal. I'll bet you'd consider that :-)
I agree, but I exhaust ALL options to locate decent deals. FYI: it's about $100 to get an accurate list of owners and addresses by # of units.
I sent you a request and you declined. I can't do so again. To send you simply hit the gray down arrow to the right of my name and "send colleague request".
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
11y
Originally posted by @Matthew Paul:

Its a shame I didnt save all the ones I get sent , it would give you an idea what a bad one looks like .
Matt,
Now worries. I have a bunch saved.
I'm not looking for crappy SFR letters. I'm looking for creative, pusiasive, well drafted letters. I actually did receive an impressive one several years ago, but unfortunately misplaced it.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Jon Q. must not have recognized you with a new name as we were colleagues
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
11y
These are a waste of time:
@Jay Hinrichs
My "pearls" have to do with developing the right referral relationships. I'd imagine yours are as well. I'm happy to discuss that with you offline if you like.
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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yes @Jay Hinrichs I went into phantom mode then you de-friended me. It's okay man, really. I must have offended you.
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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@Matthew Paul
Here's another one. I think I might make a collage out of them some day. Usually I count these to gauge how desperate buyers are. I'm sure there's a relationship btw # of letters and the market cycle.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
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@Jon Q. those are the one's can you imagine a owner of a multi million dollar property responding to those.. they respond to solicitations from their commercial brokers or For REAL companies not wanna be BP trained direct mail folks..
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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@Jay Hinrichs
No I can't. I agree with you. I'm planning to draft a serious, well written, persuasive letter. I can do it for $200 or less per market. I get owner details direct from the source and will cold/warm call if necessary. If I get 1 decent deal from it, it would be worth it. And like I said, I've got several other off-Loopnet deal sources.
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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@Jay Hinrichs
I might have to disagree with you there. They typically don't respond to real brokers as most are a pain to deal with. Most will offer the deal to people they know (good old buys) first.
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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@Jay Hinrichs
Most of the best deals are already gone by the time brokers get their hands on them.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Jon Q. no denying if you land a multi million dollar multi family deal with 200 dollars worth of letters that your wildly successful.. I don't play in that sand box so I really don't know I buy infill lots and build homes or subdivisions so we are fishing in a different sea
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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@Jay Hinrichs
Do you do the development yourself or have partners who develope? What's your role? I'm guessing the financial aspect?
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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@Jay Hinrichs
Do you do the development yourself or have partners who develope? What's your role? I'm guessing the
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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Sorry for the double post.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Jon Q. I am a licensed developer in Oregon I am the principal in all that I do here.
IN other states I build in I am the principal but its not necessary to be a licensed developer Oregon is unique in that law.. and of course in Oregon that law is broken with the same frequency as those that wholesale without a license in states it not permissible to do that.
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
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@Jay Hinrichs
Interesting. Development isn't something I know much about, but something I'd like to learn more about. Any good books you can recommend?
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Jon Q.
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Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
11y
I've got a good friend who did the entitlement work for the Westpark Community (http://wpcommunities.com/projects/westpark/), a 1,500 acre developed in Roseville, California. They entitled 4300 residential units.
This guy is also a Law Professor and a board member at Realty Shares...you may know him?
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