What has been your experience with direct mail?

8 Replies

I wanted to get some input on what experience investors here have had with direct mail and particularly yellow letters.  They have been very effective at getting my phone to ring.  In fact this has been the best strategy I have used thus far. I thought I would get input on what other people use in their mail pieces and how it has worked for them.  I look forward to hearing from you all.

in my opinion daniel direct mail and driving for dollars are the best marketing there is 

good luck

Sending letters is only worth the system of follow up behind it! 

Originally posted by @Dennis Pressey Jr :

Sending letters is only worth the system of follow up behind it! 

 Finally!!! You hit the nail on the noggin. 

Direct mail is a competitive beast. Why? Because it's the easiest lead generation method out there. The ones who have dismal results all have something in common. They either did a terrible job acquiring their list (absentee owners are getting multiple direct mail pieces a day from investors) or they tried being a copywriter and wrote a terrible message. 

The best thing to do for direct mail is create a budget and a plan. Stay consistent on the system (IE first monday of every month we send out last month's probate, then 6 weeks later we send out another direct mail piece to the same list). I like to hit the same list every 6 weeks and rotate the marketing piece. The money is always in the follow up. Do not alienate tire kickers. They let you know your mail is working.

Here are the list we work

Ultimate Motivated Seller List:

1. Probate- get from county or state (just google what court handles these cases and call to find out)

2. Evictions

3. 2 or more years late on taxes, then run it through my software to find the vacants. Find who handles your the taxes and then file a Right To Know (if applicable)

4 60, 90 days late on mortgage

5. Notice of default (foreclosure).. constantly stay in their ear , from start to finish.

6. discharged/dismissed bankruptcy cases (get from pacer)

7.Tax lien sale- published in legal news papers when auctions come up

8. Divorce- get from court

9. 25+ years owned or more for owner occupants with equity (list-source)

10. Code Violations

11. Vacant properties (drive for dollars)

12. absentee owners 3-5 years owned (most landlords sale after the first 2 years, and with prices climbing its a perfect list)

13. inherited properties: some states do not require heirs to go through probate if the will was recorded prior to death. these properties are sold through under a special deed

14. Expired listings. 

As for performance. We get 12% response rate with this letter (depending on this list- I find probate pulls the best).

On average of 1000 letters we get 60-125 phone calls (depends on the list). On average 25-35% of them truly want to sell. And from that we make an offer on 30-50% of them (75*.35)=  26 actual leads.  12-17 Offers from that bunch. We close about 1 in 22 offers. 

That *is* an eye catching yellow letter.

@Shane Foster   Great stuff Shane. I have used direct mail for years and it works. Plan your work and work your plan.

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