How Many Yellow Letters do You Get?

19 Replies

Hi everybody, I had a few questions for all landlords who received lead letters from other investors (yellow letters). How many investors contact you per month? Are you a local or out-of-state investor? Do you invest in a city or rural area? Thank you in advance for your answers, I'm interested in putting together a campaign and trying to figure out how much potential competition there is.

Daniel U. Forget the completion! The only real competition is yourself against the world. Set up your goals, plan your work then work your plan. I get postcards to sell all the time, I chuckle then trash them. The letters and cards are part of the deal process.

I am about to send out postcards twice a month to owners of properties on two streets until I can buy up as much of the homes as possible. I’m a buy hold rent kind of guy. My goal is to get 30 SFH at least 3 beds and hopefully 2 baths or I will work to add a 2nd bath.

Good luck to you.

We have 17 rental units at a total of 8 locations. We receive several "yellow letters" per month from various investors. Some are well presented and some are really tacky. I'm collecting them in a box with the thought that if I decide to do the same sometime, I'll glean some good ideas from the best and know also what to avoid.

Recently a local realtor (young guy new to the industry) mailed his information to some of our tenants along with a letter of untruths that put a negative light on landlords and renting. He told them they are "throwing their money away" by renting instead of buying. It was a letter to persuade them to buy their own home and he offered to find the perfect home for them. Some of our tenants are on fixed income and wouldn't be able to take care of their own home because of disability and/or aging. People rent for many good reasons and there are many good landlords providing a worthy service to those who choose to rent. The young buck's letter was a cheap shot aimed at gaining business for his own interest. I wouldn't mind an honest offer to help those who wanted to buy their own home. But his negative approach to renting and villainizing of landlords was crossing the line. I took a copy of the letter and plan to address this with him, as well as talk with some of the respectable realtors in town about it.

Ia m in a smaller city (40,000 population), and I only get them about every 6 months.  And most of them relate to one specific property.  I'm not sure why that property is more attractive.  I have considered phoning them even though we are not currently interested in selling, but have not.  Like Marcia, I throw them in a file.  My purposes would be for leads on who to contact when we are ready to liquidate in this area.  We're local investors.

@Daniel U.

I think that you're question won't get you the answer you seek because there are many factors when it comes to direct mail and the specific question you asked won't help you. If you're in a competitive area, many lists are saturated and it does take much more mail to get a deal. If you're in an un-competitive/rural areas, people have gotten deals on their first mailings. In strong competition areas it usually takes *at least* 4 mailings

If you want help with direct mail, I can send you a game plan and a checklist of things to prepare before you start.

You really should go to your local REIA because what you're seeking data-wise is very specific to each area, even counties have very different rates depending on who's operating and how professional they are.

Good luck

Thanks for the replies.  I am just trying to get some data to get a feel of what it's like out there.

I like that idea a lot @Marcia Maynard , I think I'm going to start doing the same.  Good luck with that guy.

@Michele Fischer Thanks for that information, how many people try to reach you for that one property?

@Ray Lai I am going to start attending them.  I'm actually getting my sales licence in a month or so where that will come in handy.  I'd appreciate your offer, let me know if I can reciprocate somehow.

My family’s building is in Bed Stuy. Get one every quarter. But has slowed down lately. Think people are moving on to East NY.

depends on the area.. in heavy rental areas we get 3 to 10 a day.. we own over 200 properties in 12 states but we are flippers so never own for more than a year ( if we can help it)  but since we pay cash for everything we have no debt so I think that is what gets the letter flow to us.. when they see out of state and no debt..

@Marcia Maynard   not knowing the specifics in the letter the agent sent. .but its a well known marketing strategy to point out the benefits of owning as opposed to renting.. Especially in our market here on the west coast were owning a home for 10 years or so can make you some significant appreciation and money.

bashing the landlord that's not cool though.

When I sold land renters were my number one target..

@Marcia Maynard , I'd love to hear some of the good and the bad from those letters you've been collecting.  :-D

@Daniel U., to my knowledge, I don't receive any, though I also am not the one responsible for collecting the mail at the address where my tax stuff goes. I invested locally, originally, but am now located out-of-state. It's a city, about 60k people. I have 2 sets of duplexes that I borrowed against my own funds to get and a SFR that is in the clear.

@Les Jean-Pierre That's pretty interesting to know, thanks for that advice.

@Jay Hinrichs That's 6-7 unique letters on average daily?  That's insane!  Are many of them repeat throughout the month, or do you get around 180 investors total trying to contact you each month for that property?  Thank you for your input, that cash buyer information is very interesting.

Thank you everybody for your input, it's appreciated.  I'm fairly new to posting, but I can see great value on this site.  Hopefully I can give back once I have a bit more experience.

no I will get 5 letters in one day from one person.. as they will send to all the homes we have in one particular zip code.

I get a lot of them; so, I called an investor back one time and, ironically, he never returned my call.  The letter matters but the person behind it matters more.

It was funny how many I got after closing a short sale, everyone apparently thought I was an idiot who wanted a few quick bucks after all that hassle.  

What is interesting is my family’s building has fit some criteria that investors would want, low mortgage, long time owners but only one company has consistently sent out letters over the years.

I follow you now @Jay Hinrichs .  It doesn't seem as saturated as I originally thought, there may be some hope yet.

@Mike Dymski It's kind of sad that somebody put in all that time and money just to throw it away.  I'm going to have to make sure to only mail out what I can manage.  Thanks for your input.

@Johann Jells You'd think that people would have some more sense instead of just blindly mailing out offers.

@Les Jean-Pierre Out of curiosity, do you deal in low rise apartments or smaller?  I wonder how the type of property affects saturation.

Originally posted by @Daniel Urso :

I follow you now @Jay Hinrichs.  It doesn't seem as saturated as I originally thought, there may be some hope yet.

@Mike Dymski It's kind of sad that somebody put in all that time and money just to throw it away.  I'm going to have to make sure to only mail out what I can manage.  Thanks for your input.

@Johann Jells You'd think that people would have some more sense instead of just blindly mailing out offers.

@Les Jean-Pierre Out of curiosity, do you deal in low rise apartments or smaller?  I wonder how the type of property affects saturation.

 once a month or so I will make some calls on the letters I receive I would say only 1 and 5 answers and or returns the call.

It is a small property. Mixed use with two apartments. Three stories. Now, when I get calls, I ask if they have anything at a discount.

Thank you everybody who replied to this post, I appreciate the input and hope to make some progress in the coming months.

Lastly alot of times when I do get around to calling these back.. I think i surprise people becasue they tried mailings they did not work and then you catch them off guard and they have a hard time spitting out their speil

@Jay Hinrichs That's really funny but also pretty important.  I was actually listening to the podcast this morning and they brought up the fear that comes along with taking those calls.  I'm going to have to rehearse so I don't sound like a newbie.  Thanks for all of your input.

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