Yellow Letter Question......

12 Replies

Hello Everyone!

New to the forum here. I have a couple rental properties I bought the traditional way, however I have decided to be more pro active and try to find motivated sellers mailing yellow letters to properties I have located driving for dollars. I spent some time tracking down the owners at the courthouse from the records, and am ready to send some letters out. My question is if it is worth sending letters out to other companies like " ABC Properties LLC, or ABC Asstets etc". I plan on sending several rounds of letters and was just curious if I should scrub companies out of my list or if it is still worth pursuing these properties. My list is mainly comprised of abandoned and distressed looking properties. Thanks for any and all help!

Best Regards - Christopher

Originally posted by @Christopher Frey :

Hello Everyone!

New to the forum here. I have a couple rental properties I bought the traditional way, however I have decided to be more pro active and try to find motivated sellers mailing yellow letters to properties I have located driving for dollars. I spent some time tracking down the owners at the courthouse from the records, and am ready to send some letters out. My question is if it is worth sending letters out to other companies like " ABC Properties LLC, or ABC Asstets etc". I plan on sending several rounds of letters and was just curious if I should scrub companies out of my list or if it is still worth pursuing these properties. My list is mainly comprised of abandoned and distressed looking properties. Thanks for any and all help!

Best Regards - Christopher

On the two lists you mentioned YES... One more thing to do is look up using the sec of states website the person of of service for the the entity and use their name.

Originally posted by @Patrick Daniel :

I would remove them. The LLCs are less likely to be willing to make the deal at a decent price even if they are willing to sell.  But that is just personal opinion. 

With Single family, most folks exclude the Corps all together even though there are a ton of folks out there like you and me who simply hold their portfolios in an LLC. While I think they are worthwhile, but would rank them behind both Absentee and Owner Occs with proper first and last names.

I do not mail to Bank Owned, Government, Church....basically anything institutional, but I do mail LLCs. As mentioned, most of the time they are ordinary folks, no office, no gatekeeper.....they read their own mail and buy and sell as much as anyone else.......and they get very little mail because the common wisdom is to skip them. Just sayin'

Originally posted by @Jerry Puckett :
Originally posted by @Patrick Daniel:

I would remove them. The LLCs are less likely to be willing to make the deal at a decent price even if they are willing to sell.  But that is just personal opinion. 

With Single family, most folks exclude the Corps all together even though there are a ton of folks out there like you and me who simply hold their portfolios in an LLC. While I think they are worthwhile, but would rank them behind both Absentee and Owner Occs with proper first and last names.

I do not mail to Bank Owned, Government, Church....basically anything institutional, but I do mail LLCs. As mentioned, most of the time they are ordinary folks, no office, no gatekeeper.....they read their own mail and buy and sell as much as anyone else.......and they get very little mail because the common wisdom is to skip them. Just sayin'

Have you ever had any luck with buying from LLCs off of mailers? I have never mailed to them, it just seems like "conventional" wisdom to skip them. Maybe I should rethink.

Originally posted by @Patrick Daniel :
Originally posted by @Jerry Puckett:
Originally posted by @Patrick Daniel:

I would remove them. The LLCs are less likely to be willing to make the deal at a decent price even if they are willing to sell.  But that is just personal opinion. 

With Single family, most folks exclude the Corps all together even though there are a ton of folks out there like you and me who simply hold their portfolios in an LLC. While I think they are worthwhile, but would rank them behind both Absentee and Owner Occs with proper first and last names.

I do not mail to Bank Owned, Government, Church....basically anything institutional, but I do mail LLCs. As mentioned, most of the time they are ordinary folks, no office, no gatekeeper.....they read their own mail and buy and sell as much as anyone else.......and they get very little mail because the common wisdom is to skip them. Just sayin'

Have you ever had any luck with buying from LLCs off of mailers? I have never mailed to them, it just seems like "conventional" wisdom to skip them. Maybe I should rethink.

I have! But I'll tell you who really turned me on to it was @Jerred Morris . I haven't seen him around the site much lately, but he's the one who turned me on to it some years ago.

I generate most of my leads via online but when I do direct mail I like to mail to LLCs.

Thanks for the shout out Jerry.  I haven't been on this site for a while, too buys doing deals.

Originally posted by @Jerred Morris :

I generate most of my leads via online but when I do direct mail I like to mail to LLCs.

Thanks for the shout out Jerry.  I haven't been on this site for a while, too buys doing deals.

 That's what I'm talking about!! Good to hear from you!! I haven't posted a lot myself recently, but just got back from hanging out with a bunch of BPers at the Midwest Summit....made me homesick so to speak. 

Yellow letters are designed to trick people into thinking they are getting a personal letter from someone. They are designed to let the seller think they received something where effort was put into (vs. a mass mailed letter). This is a fact. That is the whole point of yellow letters.

LLC's know all the tricks in the book most likely and will not be fooled by this trickery. Yellow letters are expensive. So why send a yellow letter to these LLC's when the whole purpose of sending a yellow letter (being to trick someone they got a personal piece) is void?

If you want to reach these LLC's just call them man!

Just use logic. Don't just "do" because the masses tell you to "do". Think, use your logic, understand how something works, understand WHY something works, improve it, be different be better.

Originally posted by @Jerred Morris :

@Jerryll Noorden - Here's my logic.  I mail yellow letters to LLCs because no one else does.  My bank account is larger because of it.  It's that simple.

Many people mail to LLC's I wouldn't because it is like trying to get deals from the MLS.

CAN you get a deal and grow your bank account? Sure. It is just too much work for me when there is lower fruit to pick.

I am not saying it doesnt work. I am saying if I (me) had a choice between mailing letters to LLC or sit back relax and watch my leads stream in effortlessly from my website, I choose the latter.

If it works for you it works. Is it the most effortless way to get deals? I doubt it.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you