I'm about to start a direct mail campaign. my criteria is:
- 1-3 bedrooms
- 30-100% Equity
- Last Market Sale Date: 1900-2010
- Property Type: SFR
- Total Assessed Value : $1-$200,000
- Excluding Trust and Corps.
I ended up with a list of 1,578 owner occupied homes and 498 absentee owners. Which adds up to be 2,076 homes.
Is this a good criteria? I could use some tips before buying the list. and is 2,076 a big enough list to get started?
I don't know the market in your area but will help as best as I can. I would only do 2-3 bedroom homes unless there's a demand for 1 bedroom homes. I would change equity to 60% and higher unless you're in an area where investors are buying at 80% or higher of ARV. I would put a minimum on the assessed value. You don't want a $25k house calling you. Finally I would include trusts. A large percent of trusts are owned by regular people and old people about to die.
My first list was 250 and got me a house. I then bumped it to 1500 and was getting a house with each mailing. But that will vary by area and mail piece.
It seems to me your list is pretty broad. Other than trusts and and corps who are you eliminating?
2,076 is plenty to get started but that is a lot of money that will going towards low quality prospects. I'd rather focus on just the absentees, or high equity, or longer time of ownership. You have a very generic list.
@Ned Carey when you ask who else am I eliminating, what do you mean by that? Also I just increased the equity to 60-100% which gave me a list of 232 absentee homeowners. Is that to low?
@Adrien S. what are some key factor that I should be paying attention to in the market to get a better understanding of it?
when you ask who else am I eliminating, what do you mean by that?
What I mean is your criteria is so broad that it will include just about everybody.
You are looking for motivated sellers. You want your lists (notice that is plural) to catch as many potentially motivated sellers and to waste money on as few non motivated sellers as possible.
I would send to ALL absentee owners. Then perhaps as a second list owner occupied that have owned over 20 years or more. (You might catch grandmas house, who recently passed away) Etc. Don't try to fit all the criteria into one list.
@Ned Carey thanks for the clarification and I will definitely follow your advice
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