I am looking at potentially doubling up on my marketing but want to hear some feedback in regards to budget.
My plan is to direct mail (yellow letter) landlords in my area with the proposal of a long term lease (master lease) or to buy as-is for cash.
I have 800 properties to begin with which I plan to mail every month for 6 months. This coming out at $4,272 through yellowletter.com
My question, is this too much or too little? I have a decent amount of savings but can't afford to just blow $4,500 with no return. Does anyone have any experience with master leases or offering multiple options in one mail campaign?
Depends on where you obtained the 800 owners data. Is there some elements of possible distress. Property tax issues Code violation issues vacant property registration list. If so then 800 for 6 monthly hits would be quite doable. You mentioned some specific terms long term lease and such that would limit your seller Pool as many would prefer cash but not all
I am a postcard guy more bang for the buck. If you raised your list to 1000 you could quite possibly pay half of what you had proposed. Better yet instead of 800 send 1600. I just sent 2300 postcards with Resimpli for a great price. Mail hit last Thursday and I have already received a few potential seller calls. My list is 40 percent list source and 60 distressed sellers. By next month I will be up to 3200 if Those 2200 are distressed sellers
Whatever you do don’t get disappointed if your first mailing doesn’t get any real seller responses. My first mailing had 3 not motivated not even remotely serious about selling sellers. It consisted of no real distressed sellers though. I was bummed but from the encouragement I saw on BP to keep mailing I did. I added to my list and After about 3 months I saw results. You might consider Reaching out to Ray Lai from Resimpli. His partner Sharad helped me greatly. It was my first outsourced direct mail campaign. Before doing it in house w postage and labor costs I was paying double and always had a hard time getting my list out.
What ever you do Just Do It Yellow Letters Postcards which I call Golden Tickets they all work as long as you are in it for the long haul and work that list.
@Joe Davalos What's your response percentage on those postcards? How many are really motivated and how many are just 'tire kickers'?
I got serious in June sent out about 1800 cards. A couple of not very serious callers. In July sent out more as I added to distress sellers list Had one potential lead. This one did turn into a purchase about 5 weeks later.
If you throw out the month of June From July to end of September serious sellers Those that opened the door for me from my mailing it would be about 7 Of those 7
2 closed on
1 under Contract
1 am about 1000 dollars away from Locking in the deal
The offers accepted didn’t start until early September so it took about 2 and 1/2 months to see results
Tire kickers from July to end of September close to the same number
So it’s about 50 percent.
On a side note as I increased my distress property owners list and the number of repeat mailings and the amount sent increased I only see my calls increasing.
70 percent are from distressed Property leads and 30 percent list source.
Some people bash list source and the first mailing was flake city. Sellers calling and telling you to drive by you do and then never picking up the phone again. I thought about eliminating and focusing on distressed property owners. I am glad I didn’t. One of the purchases mentioned above was a list source lead. It came in after third mailing.
My future goal short term is 1000 list source which I am doing close to now and 4000 distressed seller leads. 5000 total. By next month I will be at 3500. So getting there longer term goal is to double that
Everything works somethings better than others but for certain surely nothing done and nothing doesn’t
@Joe Davalos Where are you getting your Distressed Seller leads from? Sounds like it came from a different source other than listsource....?
Create my own. City liens code violations vacant property registration drive for dollars. Property tax issues
It takes time to input into excel but important to track. As months go by list will grow
I keep a workbook with a sheet for my mailing contact plus date of mailing and how i received the lead. Also have a worksheet for bad addresses as to not keep mailing to a no good address.
@Joe Davalos Sounds like a great way to build list and keep things organized. Thanks for the input
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