I'm in the process of mapping out my marketing campaign for motivated sellers. I have the budget to send out 1000-1200 postcards a month for the next 6 months. I'm creating this campaign over 2000 miles away from my target area (moving to target area before year's end) so I am somewhat limited as far as being able to actually go to the courthouse for leads, etc.. A friend experienced in flipping/estimating rehab costs will be attending the appointments with the sellers and splitting any profits until I make it over there.
I will be sending out first class postcards out to the lists with a simple message saying something personal along the lines of "Hi Mr/Mrs _____, My name is Ryan and I buy a few properties a year in the area. I am interested in making an offer on your property, I am able to close quickly with cash. Please call back at xxx-xxx-xxxx if interested, thank you for your time!"
My strategy/target list is as follows:
- I spent numerous hours scrubbing my county's Tax Delinquent list, only coming up with about 150 addresses, although I think it is a strong 150.
- I have access to a Code Enforcement list from my county, however, it is very clunky: It only shows the last week worth of violations, and I did not see any repeat offenders so I don't see this list being very motivated.
- I am about to purchase about 900 leads from List source broken down by:
- Targeting 1 Zipcode (highest Cash transactions within last year)
- 50-100% Equity
- 3-5 Bdrms/ 2-4 Bath
- Absentee In/Out of State
- Last Market Sale Date: 1900-2002
- Total Assessed Value: 50,000-200,000 (Median Sale Price ~$170,000) -- **Uncertain about this one
- Exclude: Trustee & Corporate Owned
With all that, I still have about $200 left over per month (this is stretching the budget :) ) and I had a couple of ideas:
- Hire a VA to either cruise Google Maps for Vacant properties and/or Cold Call FSBO ads on Craigslist - If anyone has any experience with this I would love to hear about it.
- Hire bird dog on CL - Cover their gas and pay either per qualified lead and a finder's fee for any closed deals.
***Any profits that I make from deals will go straight back into marketing.
I want to pull the trigger on the above campaign before this weekend is over, but I would love to hear your feedback first, thanks everyone! Also, if you've made it this far, then you are awesome.
Cool- sounds like you have a decent plan. One thing I might change is the filters with Listsource. I only go back 5 years because it's possible they inherited house or learned quickly being a landlord sucks. I would also include trustee and corporate owned. Just because the property is owned by an entity doesn't make them less motivated when their tenants suck. After buying, I would scrub the list and delete the banks but keep the LLCs.
Out side of that, mail them consistently regardless of results. Don't expect magic over night. For a wholesale deal, you're probably looking at a 60-75 day turn around time from when mail hits to when you cash your check. This factors in the delay in when they call, how much time they need to vacate property, and time for you to sell it. Stay focused and eventually all the good work habits pay off.
@Adrien S. Great advice, thanks! I just changed the filters to include corporate and Trustee & last 3 years as I just now remembered that I saw that from on a recent post somewhere for the same reasons you just mentioned...good catch. Yep, I realize consistency is key in this business, thanks again!
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