Real Estate Investor · Tempe, AZ · Member since 2010 · 16 posts · 0 votes
Hi Folks.
I have been marketing here in Phoenix for the last 2 months (700 yellow letters to Absen-owner list both months) and I have experienced response rates of 1% maybe 2%.
I've been away from wholesaling since May 2012 and then I was receiving 5-20% response rates on my mailings. Things have drastically changed here in Phoenix.
I now realize rehabbers and buyers are marketing to the same list of motivated sellers that I am. My question is how can I compete with this insurgence of people marketing to motivated sellers like me. I am spending 1k per month on Direct mail only to get 5 or 6 calls. Could somebody please share their insight.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
13y
Sorry I have to add this
Take advantage of the tools laying in front of you. Heck the Thursday calls are great. Find someone to role play with. There are so many of us on BP who will spend the personal time to help its crazy. We are only a call away.
Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
13y
Hi Dorsey Matthews,
In a saturated market, you're going to have to find a way to stay ahead of the curve. In order to do that, you're going to have to get an idea of what your competitors are doing, and then veer off the beaten path.
That's one reason I don't believe in set templates.
DFW is about as saturated as a market can get. When my response starts to slip, I change it up. Sometimes it can be as simple as changing the color of paper, or the type of envelope. If everyone else is using invitation style envelopes, switch to the little grandma type. If everyone is using a yellow lined paper, try stationary.
Also, you may want to look for a different niche. Absentee owner info is easy to get. Code violators aren't. Neither are probates in some markets.
Whoever you target, make sure your calls to action are strong and clear.
Bakersfield, CA · Member since 2013 · 184 posts · 19 votes
13y
Hey Dorsey Matthews,
In your situation the market is being saturated with investors because of the hot market. If you want I can go over some strategies with you that might help.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
13y
I wouldn't personally market to code violations nor probate and I bet I've bought more houses then most that say to. Certainly a code violation and probate can be a great find which turns into huge profits however I always ask the key question.
Can I duplicate actions at a pace which supports my business goals. If I only wanted to buy a house or two. They're fine. If I have bigger expectations then they will fall short.
So the key is and always will be lead capture.
You're absolutely in a hot market. What makes you different to the responder?
I spoke to a customer today who took 737 calls this month and hasn't yet bought a house. What's worse is that his info to hang up was 45:55. An amazing number.
He didn't understand how to convert a caller who sounds like a wasted call into an appointment to buy.
That's the key.
IMHO
To add. The yellow letter as great as it is can get tired. Which is why we have added the Zip Letter. 95% open rate and nearly half the cost.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
13y
Sorry I have to add this
Take advantage of the tools laying in front of you. Heck the Thursday calls are great. Find someone to role play with. There are so many of us on BP who will spend the personal time to help its crazy. We are only a call away.