In a podcast a while back I heard @Michael Quarles say that he groups potential sellers into two categories: Owners with equity and owners without equity.
Can anyone share their thoughts/results marketing using direct mail with equity as a primary marketing parameter verses marketing to only Absentee owners?
Currently I am marketing to only absentee owners with equity, but I realize I am leaving out a lot homeowners in my farm market that may be willing to sell at a discount.
Absentee owners with equity is a good list but if you want to reach those other owners with equity, just mail to all the owners with equity.
I get a good return on just absentees. If that ever dries up I'll switch over to all equity.
Absentees with equity is the most productive pool. Max out your opportunity there before you add regular Owner Occupants (OOs) with equity.
If you are a RE investor - i.e., cash buyer - you need equity in order to do a deal. If you are an agent that can list them, or you do other things like lease options, you can market to people with less equity, but for cash buyers equity% > 50% is MUST on ANY list.
When you mail to OOs, don't expect the kind of response rate you get from Absentees. It's harder to find motivation in the OO pool.
When we mail to OOs, we hit specific groups that might have higher motivation such as senior citizens (who may be moving in with kids, going to assisted living, have houses that have not been updated since the 70's, etc.).
Be SMART with your direct mail investment. You can waste a ton of money if your list is not well-targeted.
I might target OO after Absentees have been mostly exhausted for my farm areas. The only OO marketing I've done before has been door knocking on pre-forclosures.
Currently my response rate for Absentee has been much lower than expected. My postcard campaign of 854 addresses is at .002% (2 calls, 1 of which I closed the deal). 2 batches have been sent so far with a 3rd going out next month. My white letter campaign also had 2 calls out of 899, no pending or closed yet. Only one batch for letters has gone out so far. I'm sure the response rate will increase as more and more batches go out though.
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