I Wanted to know is about $500 a month enough money to start a direct mailing campaign?
If you are using yellow letters, I generally use $1 per letter as my cost. Sometimes they're more sometimes they're less depending on format and how many you oder. I use companies like yellowletters.com and yellowletterscomplete.com to send them out for me.
To get started, I think $500 is plenty. That's 500 letters a month.
If it were me, I'd start with a laser targeted list of about 300 and hit them twice a month for two months. On the third and fourth time, I'd use PCs instead of YL.
Search "yellow letters" in the search bar and you'll find a lot of great resources and strategies on YL and direct mail.
Best of luck to you.
You can buy the minimum 300 person list from listsource.com for about $50. I have heard people say they get response rates of 1-3% from mailings.
@Brit Foshee thanks for your quick response I have About 50 Probate letters im about to mail. What would you suggest for another targeted lead?
@Clay Smith from list source i know you can specifically target a niche im looking at absentee owners to wholesale would that be a good lead?
Absentee out of state owners; or upside down mortgages willing to short sale. just depends on your comfort zone. To shorten the list look for "single" people who may have gone through a nasty divorce. If selling to flippers do 3 bedroom min. Selling to landlords bedrooms don't matter, but any 1-2 bedrooms near a major university generally can move fast for rentals.
Absentee owners are my personal fave, but you'll find your niche. I just don't want you to get discouraged. 50 pieces of mail isn't a lot of exposure.
I usually guess about 10% never reaches the right inbox. I have wrong address. Many reasons.
I'd say about 30-40% never get read. Sometimes more depending on what you're sending.
That leaves you with about 50% that actually open your letter.
About 25% of those will give you a call and about 10% of those will give you a contract.
All that to say, you're odds with 50 pieces of mail isn't very good. I will say that probate leads are some of the strongest, but I'd try to increase your list a little.
Best of luck to you.
@Brit Foshee Yes I Am working to increase my probate lead list, However when you are mailing to absentee owners do you mail narrow it down to instate or out of state owners ones with equity or without?
@Gary Threadgill The list company I use, doesn't allow me to see equity, but I can mail to delinquent owners. (late on taxes, mortgages, etc)
Honestly I try to be a little unique in approach. I try to hit people I think no one else is hitting.
One area I've had success with is a "C" area. I know wholesalers aren't hitting this area hard, because 1) I own some homes there and have never received anything 2) The houses aren't worth as much.
BUT what I have found is that investors love this are for rentals and many times people just want to hand me over the house because of bad tenants or out of state, or whatever the reason.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Get the Ultimate Beginner's Guide
Sign up today to receive the popular eBook for free!