Direct Mail Innovative Strategy

24 Replies

Since my market is extremely hot, I am trying to come up with different people to hit with direct mail, people that are not on everyone's radar. I came up with a list of people who last bought the home in or before 1985, the catch is they are all owner occupied. I know absentee owners are a list everyone mails, and one that I have had very little luck with. So what do you all think about hitting owner occupants with equity, specifically really old people?

@Devan Mcclish

Target properties that have incomplete or incorrect mailing addresses on tax records.  We will be rich when we master that.

Frank

Frank Romine, Real Estate Agent in CA (#01957844)

@Frank Romine

I completely agree with that. Most investors throw the RTS mail in the trash

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I am going to guess skiptrace it and find the owner

Account Closed

Some of the invaild mailing address data on the tax records can be found by searching for the owners name through white pages or intelius.

Frank

Frank Romine, Real Estate Agent in CA (#01957844)
Originally posted by @Devan Mcclish :

Since my market is extremely hot, I am trying to come up with different people to hit with direct mail, people that are not on everyone's radar. I came up with a list of people who last bought the home in or before 1985, the catch is they are all owner occupied. I know absentee owners are a list everyone mails, and one that I have had very little luck with. So what do you all think about hitting owner occupants with equity, specifically really old people?

 I think that can work provided you have a large enough group a few to several hundred and you have hit them monthly or so for the next 90 days! It should drum up some potential Owner Finance deals or wholesale deals. 

@Tyron McDaniel

 Yeah it is about 1100 people who I will be mailing to, so hopefully I will get some responses. My main problem is too many people are mailing to the same lists, there is too much competition

@Devan Mcclish

 I think this is a great approach. Older people are more stubborn & if they've been living in the property that long, they're probably going to die owning that house. They're in no rush so it takes consistent mail outs until they decide to call.

May want to try including older widows. Not sure if the website/ software you use includes this filter, but older widows seem to be extremely motivated (lonely & want to move closer to kids, can't keep up with the property their own, down sizing, etc.)

Originally posted by @Devan Mcclish :

@Tyron McDaniel

 Yeah it is about 1100 people who I will be mailing to, so hopefully I will get some responses. My main problem is too many people are mailing to the same lists, there is too much competition

 LOL - that's why it's all about TIMING and consistency! I got a house I am working right now that when I went to the seller's house to seal the deal she showed me (4) other letters she had received and the reason she called me was because one of the other investors scheduled a meeting the seller, never showed up or call! 

I go on the appointment, in 10 minutes, I have the deed to a house with $30k equity and the ability to buy their vacant lot as well.

So YEAH there is competition but mail creative and intriguing mail pieces and you will do FINE my friend!

Originally posted by Account Closed:

Devan Mcclish - where would you find that info?

 @Devan Mcclish Account Closed

Listsource is a great source to find absentee and owner occupied home owners.


@Devan Mcclish

Mailing to owner occupants with equity is a great "not everyone's doing it" strategy.  Just be prepared for more calls telling you they'll die with the house.  A lot of calls giving you some astronomical pie int he sky number to sell (if you're a sucker), and lots of RTS just because they don't want to open it. 

We've spend a lot of money and time chasing the owner occupants with equity.  And sometimes you get lucky, like in the middle of a probate situation where the heir gets the letter.  But those are shots in the dark.  I wouldn't base any list solely on one type of seller. 

Like @Tyron McDaniel said, it's all about timing and consistency.  We've had several sellers that picked our letter out of a stack and called us, because we had more in the stack than the competition.  And/or because we "seemed" trustworthy.

The owner occupant with equity sale is usually months or even years after you are mailing them.  They just keep them on the kitchen table, or in the drawer, or on the fridge.  Then one day they call...

Shane Woods, Real Estate Agent in TX (#0660315)

update:

Got very few calls from the list about 10. Most told me to screw off. But I hit one house in probate ending up closing on it last Friday. It's a fix and flip. 

*ding* :)

Shane Woods, Real Estate Agent in TX (#0660315)

I'd say with the times a changing, it really is about the numbers. Why not send out to your target market but include a sampling of another set. If you get any sort of response from that set, resend to that set of home owners.

@Devan Mcclish Just finished watching your podcast and came searching the forums for some info on what content / wording I should be using when sending out direct mail? Greatly enjoyed the podcast by the way. Got some great ideas from it. I'm right around your age and admire what you've accomplished.

Hi @Devan Mcclish - I can suggest that being authentic and real is about the most important thing you can do. Speak from the heart.  Don't be a big company, be you!  

I'll throw in my 2 cents.  Owner occupied, equity owners who have lived in the house for 10+ years is an ok list.  I've bought some deals off that list, but there are better lists out there (in my opinion).  By far most of my deals have come from my DFD list, tax lien list and a few other niche lists.  

Generally, the more difficult it is to compile a list, the higher the probability that you'll get a deal.  For instance, a DFD list takes a ton of time to create.  Most investors don't have the time and don't want to do this.  Therefore, your competition is greatly reduced.

Another way to gain a competitive advantage, even if you do mail to the over mailed lists, is to send creative mail pieces.  I know the large majority of investors will send out the same mail piece that everyone else is sending because they think its the best, only way.  They don't take the time to work on their marketing approach which, to me, is one of the most important aspects of this business.  No marketing funnels = no deals.  

Finally, consistency and follow up is key.  I've been mailing some people for the last 3 years and am still getting deals off the list.

Listsource is a good resource if your county's records are up to date.  Do not expect to get any help/support from them though they outsource their customer service and those dudes don't understand certain "need to know" info like criteria.  

@Devan Mcclish owner with equity you will hear a lot I'm not selling my house I rather die here before I sell it.

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