Yellow letters

11 Replies

I read a lot of these forum posts mentioning people sending out yellow letters. What is the best way to generate affective lists for yellow letters? In particular I'm looking for a list of absentee owners but I'm not sure how to come up with that list. Any help is appreciated!

If you plan to market to absentee owners be prepared to have lousy results (depending on your market's competitiveness). Every guru pushes this list because it's so easy to acquire and take action. We find that they are getting smashed with direct mail. Does not mean it's worth a shot, but if you're on limited resources I'd focus on my one of these list that we have success. You'll see a common theme, it requires you to preform work. There are a few list brokers for each list.

1. Probate- get from county or state (just google what court handles these cases and call to find out)

2. Evictions

3. 2 or more years late on taxes, then run it through my software to find the vacants. Find who handles your the taxes and then file a Right To Know (if applicable)

4 60, 90 days late on mortgage

5. Notice of default (foreclosure).. constantly stay in their ear , from start to finish.

6. discharged/dismissed bankruptcy cases (get from pacer)

7.Tax lien sale- published in legal news papers when auctions come up

8. Divorce- get from court

9. 25+ years owned or more for owner occupants with equity (list-source)

10. Code Violations

11. Vacant properties (drive for dollars)

12. absentee owners 3-5 years owned (most landlords sale after the first 2 years, and with prices climbing its a perfect list)

13. inherited properties: some states do not require heirs to go through probate if the will was recorded prior to death. these properties are sold through under a special deed

14. Expired listings.

@Porter Rappleye, @Shane Foster hit on a very important topic which is often times glossed over. That being the word "motivated" in the phrase "motivated sellers." You should be looking for homes on sale NOT for sale. This means there is some inherent pain point i.e. tired landlord, tax issues, divorce, etc. where its more beneficial for them to sell then own. When the motivation level is high typically so are the response rates. Just my two cents...

@Shane Foster Thank you so much.  That information was extremely valuable. 

@shaun Caldwell I couldn't agree more.  I will definitely revise my search criteria to focus on motivated sellers.

@ShaneFoster, great list. Any tips for finding these lists?

@Shane Foster  Great info. This software for finding vacants that you mentioned... is that something you developed in-house?

@Porter Rappleye  Hi Porter.  Yellow letters are an excellent way to build your investment business. You can build your own mailing list through the use of this direct mail marketing tool.  May I ask what type of property are you looking for?  You mentioned absentee owners in your post. 

Yellow Letters were a great tool, but unfortunately they have been over used by all the seminar newbies. Working with a Realtor or finding them on your own can be much easier depending on the market your trying to purchase in. I prefer mid Western and South Eastern states to have multiple advantages. Since 2013 and on there have been so many seminars, webinars and gurus hosting some form of education has created more Real Estate Investors than ever before. The only advantage I have tapped into is working with Large Funds groups who have purchasing power in large quantities. The REO market is nearly tapped, and unless you have 200 million in funds you can not purchase at the desired 50% - 65% below current market value. There are still a few needles in the haystack of private sellers, but they are getting harder to find. One huge disadvantage to private 1 off sellers is that they are aware of the countless Investors trying to break into the market, and they are insisting that their properties are worth market value when in actuality they are not. HUD,Fannie Mae and Freddie Mac have many homes at market value, but you can negotiate with them to get your price. I do find bulk sellers who occasionally will sell a few out of their package at a time (cherry picking).

@Shane Foster  was like a hammer on this topic!  And the nail was (marketing).  I'm going to run with this.  Just got my Yellow Letter sample in the mail (Click Here)

Originally posted by @Shane Foster :

If you plan to market to absentee owners be prepared to have lousy results (depending on your market's competitiveness). Every guru pushes this list because it's so easy to acquire and take action. We find that they are getting smashed with direct mail. Does not mean it's worth a shot, but if you're on limited resources I'd focus on my one of these list that we have success. You'll see a common theme, it requires you to preform work. There are a few list brokers for each list.

1. Probate- get from county or state (just google what court handles these cases and call to find out)

2. Evictions

3. 2 or more years late on taxes, then run it through my software to find the vacants. Find who handles your the taxes and then file a Right To Know (if applicable)

4 60, 90 days late on mortgage

5. Notice of default (foreclosure).. constantly stay in their ear , from start to finish.

6. discharged/dismissed bankruptcy cases (get from pacer)

7.Tax lien sale- published in legal news papers when auctions come up

8. Divorce- get from court

9. 25+ years owned or more for owner occupants with equity (list-source)

10. Code Violations

11. Vacant properties (drive for dollars)

12. absentee owners 3-5 years owned (most landlords sale after the first 2 years, and with prices climbing its a perfect list)

13. inherited properties: some states do not require heirs to go through probate if the will was recorded prior to death. these properties are sold through under a special deed

14. Expired listings.

"then run it through my software to find the vacants."

Nice info but better plug for your business.  LOL 

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