Real Estate Investor · Carrollton, TX · Member since 2014 · 7 posts · 0 votes
I'm working on raising private funds. Does anyone know the cheapest way to send mailers to potential investors? I had one of my employees pull a list of investors with their name and address only. So now I have a pretty good size list of investors and addresses that I would like to mass mail. But I would like to personalize them in the most efficient and cost effective manner. But I have never done a large list like this before. Any suggestions or input would be appreciated. Thanks in advance.
Investor · Vincennes, IN · Member since 2013 · 223 posts · 108 votes
11y
We use the mail merge feature in Microsoft Publisher. If you don't have Publisher there is one in Word also. Our letterhead just happens to be in Publisher. At the end of the letter add a font that looks like cursive for your signature in blue ink. We use a 2x4 address label on the envelope with our logo and return address in the top left corner and the address of the person your mailing to on the bottom, in a larger cursive type font, again blue ink. First class postage.
That's the easy part. The hard part is content of your mailer. Despite what you may hear, you cannot generally solicit to investors whom you got off of a mailing list. You can introduce them to your company, what you do, invite them to a pitch free, informational seminar and so on to establish a relationship with them. Just don't make an actual offering of an investment. that comes later in the process.
Investor · Vincennes, IN · Member since 2013 · 223 posts · 108 votes
11y
We use the mail merge feature in Microsoft Publisher. If you don't have Publisher there is one in Word also. Our letterhead just happens to be in Publisher. At the end of the letter add a font that looks like cursive for your signature in blue ink. We use a 2x4 address label on the envelope with our logo and return address in the top left corner and the address of the person your mailing to on the bottom, in a larger cursive type font, again blue ink. First class postage.
That's the easy part. The hard part is content of your mailer. Despite what you may hear, you cannot generally solicit to investors whom you got off of a mailing list. You can introduce them to your company, what you do, invite them to a pitch free, informational seminar and so on to establish a relationship with them. Just don't make an actual offering of an investment. that comes later in the process.
Real Estate Investor · Carrollton, TX · Member since 2014 · 7 posts · 0 votes
11y
Interesting... thank you Matt. That sounds very doable... I do think we have Publisher so I will try that first. But I will have to say I'm probably more familiar with Word.
For the content I think you are referring to the SEC rules correct? I will refresh my memory on the rules. I don't want to cross any lines so thanks of the heads up. I'm new to Bigger Pockets but maybe they have some articles on this as well.
Specialist · Dallas, TX · Member since 2014 · 900 posts · 392 votes
11y
The cheapest way is with yellow post cards with hand writing or red arrows & such to catch their attention. It does two things, lower costs vs larger letters. You would most likely be in under $0.75-$1.00 with postage vs over $1 with letters.
Also, if you do the merge with Word and labels, you can save money vs having a company do it for you. Just get them to print the cards, or what the heck, go and get some yellow 3x5 cards and write them out yourself for the absolute lowest prices...Write in red bold marker, I Want To Buy Your House & Circle it!
Its also a cheap method to scrub your list. I learned NOT to send out expensive mailers on the first go, as many came back moved, dead, etc and all that money was wasted.
Remove the returns from the list, then go back and send larger, bulky mail to avoid the trash can. Also, be prepared to spend a few thousand and do it every few weeks, as 1x time mailers don't bring in a lot of results.
Investor · Vincennes, IN · Member since 2013 · 223 posts · 108 votes
11y
Yes, you need to follow your security regulations. There are a few exemptions that you can follow to solicit investors such as Reg A, Scor, some intrastate offerings and the new 506 c offering created under JOBS. They all have certain rules to follow.
I agree the cheapest method is the yellow postcard and we do use them for certain things, but personally I wouldn't use them to attract investors. If you do the postcard route for investors at least use glossy stock with a decent logo and perhaps a picture faded into it. Nothing cartoonish. Still, even with a good list, 99% of them will probably end up in the trash. Scrubbing the list is a good idea, I just would rather not give a cheap impression doing it.
Perception is key in raising capital. There is nothing wrong with being frugal, just don't look like you are.
Real Estate Investor · Carrollton, TX · Member since 2014 · 7 posts · 0 votes
11y
Thank you so much for the input. This is great information. Do you guys have any company references that will do this as a service even it if is more expensive to save me time?
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
Might ask an attorney as to the applicability of your intended project to the JOBS Act, you buying rentals probably won't be seen as a real job producing activity. I have read some aspects but I'm not "on top" of this, not yet.
To say "private lenders" or are you sending to unregulated lenders that are in the business of lending, they may respond, true private types will likely trash such letters.
Saying, private lenders or sources of funding are those you know, past business relationship types. It's a personal relationship.
Seems to me to be a rather unsophisticated way to contact sophisticated business prospects. Post your results, might be interesting. :)
I would agree with Bill's post above, private lenders are someone you already know. If I received a postcard in the mail asking to invest money with a stranger, first thing I would think is that it's probably a scam. Then I would think: why wouldn't this person just go to a bank? Lack of savings, bad credit?
Personally even if I was going to invest in RE as a lender, I would probably go to a HML where the paperwork and due diligence is done professionally.