Yellow Letters

11 Replies

I am a new investor.  I like to know more about yellow letters marketing.  Please advice.  Thank you

Hi Helen,

I've gotten a good response with a simple hand-written letter on yellow legal pad (in red ink).  I say something like:

Hi,

My name is _______ and I would like to $BUY$ your house at ______________.

Please call me at _______________.

Thanks.

-Your Name-

Depending on your target sellers, and the number of letters you send out, it should get your phone ringing.

P.S. Don't seal the envelope. Just tuck it in. People are more likely to open the letter and read it for some reason. I don't know why but it works.

Good luck,

Gary

Hi Helen,

I am very much in the same boat and have probably been stuck in analysis paralysis.  I am sure you have seen this post already, but if not check it.  Lots and lots and lots of useful information.

http://www.biggerpockets.com/forums/87/topics/104703-my-direct-mail-campaign-results-have-been-atrocioushelp-please

Gary,

Thank you.  How do you mail an unopen letter?  why are they called "yellow letters".  I have one i just sent out the other day.

here:

My name is _______________ and I noticed your home on MLS. I do not know your current circumstances but from researching the area and doing my due diligence I know that there are quite a lot of foreclosures in your area, as a matter affect several houses next door to your property are in foreclosure right now: 1311 Summerfield Avenue, 1515 Summerfield Avenue, 1306 Summerfield Avenue, and others. There are currently at least 12 more properties within less than 0.14 miles from your property that are in pre-foreclosure. According to county records your property estimated value is $_________.

You are competing against the foreclosures out there. The foreclosures are bringing down everybody’s values. I do not want to give you a lowball offer, but the reality is that those foreclosures are really what’s at fault here. I also see that your property has been on the market for over a month.

As I said I have been doing some research on the area for quite some time now. According to county records and other comparable properties in the radius of up to half a mile is currently between $_____________ to $______________.

Keeping all this in mind I would like to give you an offer on your property located at 1407 Summerfield Avenue of $___________. My reason for selecting this number is because of the current housing market in Asbury Park, the age of the property (Built in 1930), the absence of stable jobs in the area and the anemic general health of the real estate market and economy.

Thank you for considering my offer and I look forward to hearing from you soon.

Respectfully

What do you think about my letter?  any suggestions?  thanks a lot.

i think it's too long. 

Behan,

I will check that link.  thank you.

I have been learning, reading, analyzing, calculating, looking for, talking/discussing and running numbers for the last 5 months.  Now I have 3 properties in motion, that i am waiting word from the bank.  they are REOs.  I am trying to choose the best strategy now.  Since I do not have a lot of money "seed money" i want to make sure I make the most ultimate decision.  

@Helen Kolton  

Good Morning, I too think your letter is too long for YellowLetters. Maybe a little long for a typed letter as well.

And your letter is too in depth. Rather than say what you have why not use aquick and simple opening line and say;

Foreclosures are SUCKing money out of your house! Hurry and accept my offer now, before you lose everything!

Then follow it with;

I buy houses in “As Is’ condition, for cash. No Costs or Commissions and would like to make you a win win offer on your home at 1234 Anywhere Street. 

Call me at 312-555-1212.

Thank you

Helen

312-555-2121

PS. Call me before it is too late. More foreclosures are coming.

i like it, really great point Michael.  I will change my letter.  

Believe it or not previously we sent out postcards to the out of town owners.  We sent our about 50 letters just to see what kind of response we will get.  We had 5 calls back.

It is very time consuming, i have a very demanding job plus we do real estate until all hours of the night, every day and every waking moment.  Learning, reading, crunching numbers, looking at properties.  

We are currently working on 2 possible deals, both REOs and we are waiting a response from the bank.  This would be our first deals and I am a bit nurvious but excited at the same time.

Thank you for your advice.

@Gary Shaw  What size is your envelope and your letter?

The No 10 size (4.125 in x 9.5 in).

I write the letter in red ink too!

Hey @Gary Shaw  I write mine in red ink too! What is your usual response rate from a yellow letter campaign?

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