I read about and hear from of a lot of investors on BP that have success using direct mail for leads. I’m curious to hear from investors who DON’T do any direct mail. I have questions and appreciate responses to any or all of the questions below!
Besides MLS, what do you do instead of direct mail to find deals?
What kind of success or metrics can you share?
Or if you do direct mail, what else do you do for marketing that is successful?
Would it be feasible to be a full time investor without doing any direct mail?
What type of investment are you talking about? Flipping? Wholesaling? Buy and hold?
I've never done any direct mailing or marketing. But I'm a buy and hold guy. I don't have to have a constant stream of deals to make my living. Different story if you're a flipper or wholesaler.
Good question. Flipping or holding. I suppose I wouldn’t need as many coming in if I was doing just a buy and hold strategy. My plan is to flip some and hold some, depending on which makes sense for a particular property.
How did you acquire yours without marketing?
A couple off-market from contacts I’ve made. Mostly from the MLS though and sometimes I’ve turned one property a seller had listed on the MLS into buying a package from them.
direct mail works... for sure... if your consistent with it and have enough money to actually do it and stick with it.
I don't use it personally.. we find our deals:
1. MLS/realtors this is our main one I like working with licensed folks that are pro's.
2. Auction companies on line
3. sherrif or trustee sales
4. word of mouth or I guess what you would call a bird dog
5. Random folks who ping us because they know we have the ablity to close.
I refuse to be on an wholesalers list.. they bombard you with non deals so total waste of time
if you can get through to ones who actually can find a deal then that's fine..
@Kevin C. GREAT Question.
I'm sure you've heard the expression:
"Quality, Speed, Cost. Pick two."
Direct mail is so popular because it is consistent, scale able, and proven.
In the same way I know guys who primarily do PPC and are getting 2-3 deals a month funneling them through an Oncarrot.com site. (Side note but our site is an IC site and the team at Investor Carrot rock!)
I also know guys running a team of cold callers getting 4-5 deals a month.
I've also got a good friend who puts out hundreds of bandit signs a month and is getting 2-3 deals a month+ from it.
I want you to notice a theme though....
All of these guys are being consistent in their marketing and prospecting efforts. On top of that... They're spending some serious money. Pretty much everyone I mentioned above is dropping $2,000 (on the low end) + a month.
What I would add to the above slogan is that in REI there's a cost/time trade off that you have to consider. If you've got tons of capital you can write a check and pretty much have a turn key lead generation business launched in under 30 days.
If you're just starting out you can still get deals... But if you're short on capital it's going to require much more leg work.
Ex: The difference between dropping mail and cold calling.
**Disclaimer: You also need to research the legality of bandit signs & cold calling in your market."
If you want my thoughts on any of the above alternative strategies let me know.
Thanks everyone! Very helpful information.
Another question for any takers:
If you were to start marketing with just a few hundred dollars per month with a goal of getting at least one deal per month (flip or hold), what ONE strategy would you start with?
And Ryan, do you know of any PPC keywords/phrases that tend to work better than others? (Not including any of the local market keywords)
Door knocking, websites, networking with other investors, agents, attorneys who don't have the same specialized knowledge as me.
@Kevin C. I would hire someone who specializes in PPC. You're going to want to make sure you also set up negative keywords so you don't blow your budget. With GDN it's very easy to do.
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