Updated over 11 years ago on . Most recent reply
Orlando FL - New member
Hello BP community. New member, Leo Koo, in the Orlando FL area starting a real estate investment business in order to build wealth and establish passive income on a long term basis. Would love to meet some Bigger Pockets contributors as I learn more about this business.
I am a CPA by trade and not new to investing per se - my full time job is working for a private equity lender to lower middle market companies (debt + equity). Although, real estate investing will be on a part time basis in the beginning, my business partner and I are extremely focused on execution. His background is as a strong marketer, Florida GC and founder of an obstacle race event called Savage Race. We've known each other for years and have done business before.
We started by executing a direct mail yellow letter strategy to ~1,000 absentee owners a couple of days ago and got our first call yesterday. We plan to conduct this campaign for the next 6 months to those leads, while layering on a couple more marketing campaigns.
FYI - I plan to attend and join the local REIA meetings. Let me know if any of you attend the Orlando ones, would love to make some connections.
Leo
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#3 Marketing Your Property Contributor
- Flipper/Rehabber
- Arlington, TX
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#3 Marketing Your Property Contributor
- Flipper/Rehabber
- Arlington, TX
Orlando is a great market. You should do well.
Why yellow letters? Are you or your partner a real estate agent that can monetize leads by LISTING properties? I ask because most of the calls you will get from yellow letters will not be motivated sellers (if you use the standard, "I'm interested in your house..." messaging).
Strong marketers know that people will "self-select" for your offer IF your messaging is SPOT ON. We use postcards that communicate a strong "motivated seller / distressed property" message. Also for absentees we have some that say "Are you TIRED of your TENANTS?" to speak to specific pain points or needs. Also, we can send 2 postcards for the cost of 1 letter.
Remember, this is NOT about "response rate". Who cares if you get 100 calls at a 20% response rate if none of them are the people you are looking for? I look at 3 key factors:
1) Cost per lead
2) Cost per deal
3) Return on Marketing - We spent $10K on marketing and netted $50K for a 5x ROM...
#3 is all that really matters, but we optimize our marketing efforts using #1 & #2.