I’ve decided to start my direct marketing campaign. Been a cash buyer and going to get serious with wholesaling too!
Question is how successful have you been with direct marketing and how many touches do you do for absentee owners? Do you see a better ROI with postcards, yellow letters or handwritten letters?
MMH Investments, LLC
I noticed no difference between post cards and yellow letters. I noticed a slight difference w a typed personal letter. The problem in my area and others is so many are doing it. We sent out 80k letters last year to snag 20 houses.
with 80K letters going out and 20 deals produced by it what was the ROI? If you don't mind me asking that is.
@Melissa Ragan I believe it was a 5/1 ratio. So we spent $60k and made $300k. But that’s mailing to absentee lists and other lists. Some lists worked better than others while some were a complete waste of time too.
Thanks so much for the insight @Adrien S. ! I really appreciate it. Just trying to see what's working on not working in the current real estate market for other investors and wholesalers :)
If you want to email me, we can chat more but I can’t put out any of my secret sauce on a public forum anymore.
We will be in touch for sure !
Hey @Melissa Ragan and @Adrian S., Can I also get some of that secret sauce as well. Would love to know other techniques.
I just got my first yellow letter this weekend. I was surprised and kind of happy lol. Unfortunately I just bought it so I’m not looking to sell
I believe so much about wholesaling and the direct mail marketing has to do with getting out into the field. I agree that you need to blast marketing letters out, but I also feel like most people miss the mark when it comes to direct mail marketing and driving for dollars. Some of the greatest buys I have made have came from the one-off letter that I sent an owner when I saw there house while driving around a neighborhood. @Adrien S. is right, so many people are blasting letters to the same list of people, but fewer people are driving for dollars.
When I am in a neighborhood to look at house that we are going to make an offer on, I always drive the neighborhood to look at comps and other houses in the neighborhood. I use a mix of letters, door knocks, door stickers, and just talking to people to make quality buys. There have been times that one afternoon leads to 2,3 or even 4 buys. There are so many ways to buy a house other than the 1 or 2 ways that a majority of wholesalers never utilize.
@Rick Allen I agree driving for houses is a great way to find deals and I’ve found several that way. However, it’s not scalable and at some point you just get burnt out driving all the time. We get 3-4 houses a year from driving compared to more passive approaches like direct mail and internet.
@Adrien S. its definitely not scalable if that is your only method for buying houses. Like I said, direct mail marketing via absentee owners is a must, but as an investor, my eyes are always open to potential deals. I would say anytime that I am out in a neighborhood and I see a house that peaks my interest, I am at the very least sending them a letter right there on the spot. If I have time, they will get a door knock or sticker as well.
Havent really noticed a difference between postcard and letter. For me it was been more about frequency. I hit people about every 6 weeks and some lists every month. Consistently mailing has been the secret sauce for me
@Adrien S. That is some serious marketing money but thats awesome you always get a good return on your money! Very inspiring hearing that from someone who does that on a large scale like you! Right on man!
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