Hi team, I'm hoping someone can help me out. If my questions have already been answered somewhere on BP, forgive me.
I just started driving for dollars today. I identified 156 distressed properties in an old, but up-and-coming part of town. Should I just send out letters to all 156 properties or should I filter down further in some way (i.e. amount of equity; back taxes; absentee owner; etc)?
I'm trying to decide from a Return on Time/Investment standpoint.
Also, if I do multiple mailings, should each mailer be different (i.e. language, format)? If so, how?
Where can I find direct mail samples with the appropriate verbiage?
BTW, I found these properties in an area in which 1 in 4 is distressed. Should I just do a saturated direct mail campaign to all addresses in the area or spend the time researching only the distressed properties?
First off congrats on gathering 156 prospect properties in one day! I figure the area might be a little run down to accomplish that? With that said I personally would just mail to all 156. Equity, back taxes, absentee owners are all very important! But with that 156 mail to the owner, even with an outstanding 10% return rate you will only have to filter through 15 potential sellers. On really large list filtering is obviously a really good idea.
To your success bud!
the big question to ask is are the buyers buying in an area this distressed. And if so, make sure you know what they're willing to pay.
I send an initial letter to all distressed properties. It's cheap. It takes too much time to research every property especially when 90% won't contact you. I do the research once I have a motivated seller and an appt to view the property.
@Joseph Caracappa Thank you! I agree, sending all 156 saves me time and I still have some favorable alls. Besides, I can always filter down for round 2 if round 1 doesn't work.
@Adrien S. One area is extremely hot and the other is warming up. Should I have a general purchase price range in my head when I start receiving calls? Or should I say "I'll get back to you" and take time for due diligence? I'm asking because the seller's first question is probably going to be "How much?"
When they ask on the phone what I'd pay, I never give an answer. I tell them I really need to see the inside before I can make an offer. I want to speak in person and really dig in to their motivation to sell. I want them to see me inspect the house so they really understand what needs to be done. After looking at house and talking, I'll ask what they want. I won't give a number first. I've already run comps so I know where I need to be and can negotiate from the number they start with. Sometimes there number is where I need it so I take it without squeezing more out.
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