1000 postcards 7 calls

19 Replies

@Jonathan Guerrero

Jonathan, My response rate to postcards is about .5% as Jerry aluded to. I have had a much higher response rate to letters and more directed mail pieces. I am by no means an experienced direct mailer, but you might get more from something other than a postcard.

@Jerry Puckett Thanks for your response.  Out of the 7 calls 4 calls were ok leads, can't say they're high quality but ok.  I'm following up with one prospect, his property is in a rougher neighborhood, not too attractive but can work.  It would be tough to flip and sell ASAP, but will be a great buy and hold.  However, rent is way under market value and raising rent drastically will not work, I would need to evict the tenant.  

The other lead has 2 properties that are move in ready and he is somewhat interested in seller financing, however he wants almost full market value and I wouldn't cashflow anything.  So I'm still indecisive on this one.

Other seller wanted 200k net and ARV is 230k. There's not enough margin to resell and I wouldn't cashflow anything if I held it.

Maybe I need to toughen up my negotiation skills?  However, it was my first time talking to sellers and I'm glad I got the experience. 

Originally posted by @Stuart Birdsong:
@Jonathan Guerrero

Jonathan, My response rate to postcards is about .5% as Jerry aluded to. I have had a much higher response rate to letters and more directed mail pieces. I am by no means an experienced direct mailer, but you might get more from something other than a postcard.

 Letters are my next move.  Glad to know I'm not the only one.  

Start with a better list. 

Segment

Use the right lure for each fish species.

Throw the little ones, the sick, the injured and the radioactive ones back quickly.

Track and measure. Adjust slowly. It's all just testing.

When it's slow, it's time to work on your business not in your business. 

Put aside (1) hour each day devoted to thinking (no distractions, phones, computers or people allowed). 

Jerry is a pro

So is Michael Quarles

Dev Horn another direct-mail bro has a video that talks about rule of seven

Hit a list seven times

Get best results

The results are better if you target your list and know exactly what works in specific zip codes. Must be obsessive about testing, tweaking and improving the copy. We write all of our own copy and write it based on an intimate knowledge of our target market. For example, marketing for 98201 is different from our marketing to 98204. The results are 100 mailers nets 10 calls and we put one deal under contract. We have been tweaking it for 8 years thought and now our market extremely extremely well.

Hi there,

Jumping in looking for advice from the standpoint of a smaller marketing campaign. Find most of my properties driving for dollars and then send hand written letters. Second round of letters going out tomorrow. What is the response rate on letters in most markets?

Hi @Jonathan Guerrero

I still go back to how many postcards we all throw away without looking at them. Versus this scenario:

I receive an envelope address specifically to me. Then, once I open the envelope I find a cover letter and a separate purchase agreement - that are all personalized with correct info about my property. Now you have my attention. 

Based on YEARS of experience, that has yielded great results for years to come. They might not call today - but they will at least put my letter in their file and call me when they are ready. 

Sure, costs more up front but worth it in the end.

Hope it helps!

Jill

that's not bad for Bakersfield.   

Next time send yellow letter 1 followed by large text PC.  Make sure that next time you send an orange or pink card not yellow.  

Also offer more than a telephone number.  Make it easy for everyone.   

And follow up at 15-30-60-90 

@Markene Mathis I haven't done letters yet so I can't tell you by experience but from what I have heard on the podcasts their response rate is certainly higher than postcards.  My budget was limited so I pulled the trigger on postcards.  Every market is different but I'm sure you will get some response.  

@Jill DeWit I wish I would've started with letters instead.  My budget is limited.  Some of these prospects could turn out well and if it does I'm doing letters and never going back.  

@Michael Quarles Thanks for the info.  Will do next time. 

Originally posted by @Michael Quarles :

that's not bad for Bakersfield.   

Next time send yellow letter 1 followed by large text PC.  Make sure that next time you send an orange or pink card not yellow.  

Also offer more than a telephone number.  Make it easy for everyone.   

And follow up at 15-30-60-90 

 I keep saying this over and over and over again the money is made in the follow up, 7 to 10 times

I made one of my biggest paydays it took me a year to get a house, like 14 mailings

People want to do business with people that are sincere and serious and follow up over and over

For people that are up against issues like divorce and bankruptcy, their head is in an ostrich syndrome where their head is underneath the sand

Your job is to be consistently persistent

normal for that area. Remember there are at least 20 other people mailing Bakersfield. I've been mailing there almost two years and my response rates have been cut in half. 

Originally posted by @Josh Justiniano :

normal for that area. Remember there are at least 20 other people mailing Bakersfield. I've been mailing there almost two years and my response rates have been cut in half. 

 Wow that's a big cut. How many letters or postcards do you send?

Originally posted by @Josh Justiniano :

@Jonathan Guerrero Yes I know. We were getting close to 2% about 1 and a half to 2 years ago. 

I send 2-5 thousand a month. Just depends on what month and lists we're scheduled to hit that month.

 Well it looks like you have a system set up already.  Are you closing on any of these? How do you like Bakersfield?

@Jonathan Guerrero Yeah but we had to attack a few other markets other than Bako after a while to make sure we were getting enough deals. Depending on what list you hit, I hear people saying they've got quite a few pieces from other people. Then it just becomes a game of who wants to lock it up the highest. Don't get involved in that game LOL!

If you can get a really refined list that no one else is hitting, your response rate will go higher. You live there, so driving for dollars is a good idea. I hit 2 deals (well, 2 properties off the same person) driving for dollars in Bako and mailing them last year. It's easier than competing with a million other investors.

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