Is anyone doing direct mail marketing in the Houston Area? If so, how has your experience been? If no, how are you finding your deals? Here are my questions and answers below as I just sent out my first mailer for the start of a campaign.
1) What kind of mail are you sending (Post card, yellow letter, professional letter, etc.) ? - Post Cards followed by yellow letter
2) Who are you targeting (Absentee owner, probate, pre-forclosure, etc) ? - Owner occupant of SFR with no liens
3) Number of mailers sent? - Around 900
4) Frequency of mailer? - Between bi-weekly and Monthly
5) Response rate? - Mailers will ship in about 5 business days.
I am interested to hear your responses.
How are you finding your leads to mail out to? This has a HUGE impact on the results you get.
I am focusing on owner occupants of a specific zip code that own their home free and clear. I was able to have someone access the HAR database for me and get me the names and addresses.
I've been sending out mailers to Galveston County for a little over a year now. It's been a pretty small scale operation so far, but I was able to close two deals from it last year.
1) Formal letter followed by postcards
3) ~1300 total
4) Formal letters monthly, postcards quarterly
5) Around 2%
Good luck with your campaign!
@Jeffrey Sturman -- I have been sending/working around direct mail in the Houston area for the past three + years.
We focus on one specific niche, evictions.
Send postcards only
Send out every week
We get responses the following week
Depending upon the time of year, but our average response rate has been 3%+. We have sent out letters, but it's twice as expensive and our response rate was about the same. Does that mean the letter could have been better? Probably, but if I can get out twice the mail, why not.
We have closed a good amount of wholesale deals in Texas using this method.
My philosophy has always been you need to find a trigger point. Absentee owners most likely have no reason to sell and have seen hundreds of postcards. Probates and pre-foreclosures are great, but they get POUNDED as well.
You could be on to something with the owner occupant with no liens. Or maybe WITH liens. That way they might want to liquidate their house to get rid of the lien. If it's that much of a pain point.
Thank you for your feedback it is greatly appreciated.
@Matt McConkey - Thank you for the information. Going after absentee owners going through an eviction is very smart. How do I find out more about your wholesale deals?
Honestly I am going based off what I heard in the BP podcast. The guest stated that the seller must have equity to sell below market so why not target people with 100% equity. This is my first mailer so I will see how it goes. I was also thinking about cross referencing if any of them owe backed taxes via hctax.net and trying to reach out to them via phone.
I'm a real estate agent and send EDDM in the Pasadena area. It will require consistent messaging (weekly, monthly, quarterly) in order to establish a presence in your market. I work with a shop here in Pasadena but I know they do EDDM all over Houston. He is a great guy and will work with you. Reach out to him for more info: Postnet Pasadena, his name is "Mus" and the phone number is Two 8 One 416 5570.