Dan's Adventures in Real Estate Marketing

Dan's Adventures in Real Estate Marketing

Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes

So, I finally got the Marketing Machine up'n'running. Up until the past few days I have been absolutely SLOGGING through mountains and mountains of data that I got from the friendly, helpful folks at the Torrington, CT city hall tax assessor's office. "Don't worry about filtering it beyond residential addresses. I'll scrub the data on my end" I said, not knowing what I was in for.

At first, I was excited as a kid in a candy store with what I got. "Golly-Gee! 12,000 properties with names and addresses! This is gonna be a cinch!" So I started to put together my yellow letters and mass-mailing post-cards in MS Word, fully expecting to mail-merge everything direct from my handy-dandy Excel sheet. Once I started running a few test samples, just to be sure everything would shake loose, I encountered my first few problems with the data. I used every MS Office trick that I knew (and several that I had to google), and after about a week and a half of moving data around, lining up my cells with the pertinent information where it needed to be, and figuring out all the kinks in the system, I finally had the information I needed, all neatly lined up, with different categories for different mailings on different excel sheets "This page is for out-of-state absentee owners of SFR's... This one is for Estates... this one is corporate-owned properties, these are multi-families..."

Keep in mind I went line-by-line through Twelve Thousand individual records, making sure that all the names lined up so that it would fit my mail merge when it came time to print. A lot of the filtering that I wound up doing had to be done by hand, because there is no excel macro that is as effective as the ol' mark-1 eyeball for spotting irregularities. There were more than a few lines that had data in the wrong place. Now, there are those who would say "You spent a week and a half screwing around with your excel sheets? Dude, just run the merge, and let the chips fall where they may. C'mon... get a move on... we're burnin' daylight here." But I'm a bit of a perfectionist when it comes to my automation. It has to be dead-on RIGHT before I let a system run away with itself.

While this whole process is going on, I'm also taking care of my 10-month-old. See, my part-time job is real estate marketing. I'm a full-time stay-at-home DAD. and you know what? I don't think I'm being braggadocious when I say that I'm an awesome dad. So, yeah. Getting my marketing materials put together is "a" priority, but making sure Lily is fed, changed, and safely at play is THE PRIORITY. It's a challenge to be sure, and it gets overwhelmingly frustrating at times, but I've had my eyes on the prize for a good long while now. Go me.

One of the ways I deal with my frustrations is by stopping doing the thing that's frustrating me, and going to do something else for a little while. For the past few weeks, that has meant going to Staples. A Lot. I have a stack of card-stock, yellow printer paper and mailing envelopes, with a square-meter footprint and a half-meter tall. Yeah, I've got my paper.

So, I got my data all set by the beginning of this week, and I've been spending the rest of the week getting my first 80 yellow letters formatted, printed, stuffed, stamped and posted yesterday (those out-of-staters I was talking about) and my first 360 mass-mailed postcards printed and aimed at my first target neighborhood today. And the best part is, from here on out the whole thing can be predictably automated! And as I'm sitting here typing this, it occurs to me that I forgot to plant my bandit signs for the weekend, and I'll be in class all day tomorrow, so this weekend is pretty much shot for signs. But I think I'll survive.

Those yellow letters should have arrived either today or by tomorrow, and my postcards will hit on Monday. If my marketing is marginally successful, and I get a 3% response rate, that's about 12 call-backs, and if 1 out of 10 of those responses is a deal at my minimum profit, then that's a 900 percent return on my investment so far. Pretty good, eh? As long as I'm able to pay for my first full round of marketing within the next 30 days, then I'll have considered the whole enterprise to be a rousing success. If it takes longer than 30 days, then I'll have to be satisfied with it being a successful learning experience.

And if I never make my money back? Well...

At least I'm an awesome dad.

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Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
13y

I agree with Raymond B., you are in for a strong sales pitch. I'm ok with Sales pitches as long as I haven't spent a lot of money to listen to it. The worst are when someone spends thousands to go to a boot camp, and 1/3 of the boot camp is sales pitches from other gurus.

As for learning from the best, just because someone is on TV or pitching at a Saturday event, doesn't mean they are the best. I think I'd spend some time reading J Scott's stuff. And all the articles, forums and podcasts here on BP are chock full of free info. Not that learning from one structured person is bad, it's just expensive. If it makes you take action and do a deal, then it's probably worth it.

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  • Real Estate Agent · Grand Rapids, MI · Member since 2013 · 6 posts · 0 votes
    13y

    Do you code your Macros using VBA? Or standard Excel functions?

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    Standard Excel. I was going for speed and simplicity. If I decide to integrate with my website, I'll probably go the VB route.

  • Rental Property Investor · Buffalo, MN · Member since 2010 · 511 posts · 92 votes
    13y

    Daniel Nield that's a pretty amazing story, lots of work but how else are you going to learn right. If you don't quit you will never lose. Of the 12,000 what are your biggest owner types? Where about is Torrington? What are you going to class for this weekend?

    Enjoy the 10 month old they grow up quick.

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    Torrington is the biggest city in Litchfield county, which is in the North west corner of CT. SFRs account for about half to two thirds of the data I pulled, But I requested only 4plex and lower for my list. Condos and small multi-families account for the rest of my data.
    Class is a CTREIA-hosted flippers class with Dave Seymour from A&E's Flipping Boston. If you're gonna learn, learn from the best, right?

  • FL · Member since 2009 · 2k+ posts · 357 votes
    13y

    Daniel Nield,
    It is always nice to see another Ct., resident in the forums.
    As you're probably aware, that class with Dave Seymour, is just the beginning of possibly spending more $$$ with Dave Seymour.

    Let us know, how the class goes.
    Hopefully you learn something that is worth the $299 that you spent for it.

    Raymond

  • Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
    13y

    I agree with Raymond B., you are in for a strong sales pitch. I'm ok with Sales pitches as long as I haven't spent a lot of money to listen to it. The worst are when someone spends thousands to go to a boot camp, and 1/3 of the boot camp is sales pitches from other gurus.

    As for learning from the best, just because someone is on TV or pitching at a Saturday event, doesn't mean they are the best. I think I'd spend some time reading J Scott's stuff. And all the articles, forums and podcasts here on BP are chock full of free info. Not that learning from one structured person is bad, it's just expensive. If it makes you take action and do a deal, then it's probably worth it.

  • Rehabber · Niantic, CT · Member since 2012 · 443 posts · 150 votes
    13y

    Hey, Daniel Nield, you're off to a great start! Most people would've quit before slogging through all of that and figuring out how to get those letters sent out. I'll cross my fingers that you get some good leads ... plus I know who you're coming to first on those SFRs, right? ;-)

    Message me on how the class went. I saw Dave speak for a couple of hours a few months ago and their info seemed decent, though they are going to pitch you HARD on the boot camp and coaching program and whatever else. They have a serious machine going on that end. Beware the price tag. Raymond B. and Ann Bellamy are right on the words of caution ... and I would agree with Ann, J Scott's books are amazing and packed with solid, useable info.

    At the same time, if a speaker/guru can help give you a road map to follow and save you some time and trouble, I say go for it if the price is reasonable. That's how I started out, w/a reasonably priced 5-day boot camp that had solid info. From there, BP, networking and experience have filled in the gaps so far.

    And I applaud you on being a great father! I have a 3-year-old and have been working the r.e. thing around parenting, so I know exactly where you are and how much work it is to juggle both. Keep on keepin' on!

  • Mike HurneyPro Member
    Real Estate Investor · Boston, MA · Member since 2009 · 2k+ posts · 545 votes
    13y

    Daniel Nield
    Dave Seymour is a character. If you've seen it on the Internet it must be true, "Bonjour!"
    Seems expensive but what do you pay for a college course or degree?
    Most stuff you'll read either needs more detail, is completely wrong or doesn't pertain to your area (even from the great J Scott).
    But, you've taken the most important step, ACTION!

  • Anson YoungBusiness Member
    Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
    13y

    Daniel Nield - thats some great action!! Keep it up, and keep us updated.

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    My first round of out-of-staters has landed, and I already have 3 responses from the survivors of a couple of estates (guess there was a bit of cross-over between my Estates sheet and my absentee owner sheet). If I wasnt suffering from a migraine right now, I'd be on the phone making offers.
    As for Dave Seymour, his sales pitch was actually very short and low-pressure, but still damned effective. Definitely got my money's worth in the opportunity to network with other like-minded folk. And I did learn some stuff I didn't know. Sure, I could have gotten the same info free elsewhere on the internet (where all things are legally required to be true), but it's like my carrot patch out back... sure, I could wait a bit and get my carrots for free... but I'm still likely going to buy a bag of baby carrots at stop'n'shop, rather than wait.

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    5 calls out of 80 letters. 6.25% response rate so far. Not too shabby.

  • Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    13y
    Originally posted by Daniel Nield:

    Class is a CTREIA-hosted flippers class with Dave Seymour from A&E's Flipping Boston. If you're gonna learn, learn from the best, right?

    The fun part about reality TV is that it is not real. But those dang editors sure can weave a great story hey?!

    Congrats on getting the marketing machine up and running. You're 95% ahead of 99% of the people at that class you attended.

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    My postcards hit today. Phone's been ringing off the hook. STILL getting responses on my rent-to-own ad I placed on craigslist two weeks ago, so tenant-buyers aren't an issue. We're approaching 10% response on my marketing so far, but I haven't had time to count my missed calls and emails (don'cha wish you had my problems?). Only here to update y'all on my progress.

    ONCE MORE UNTO THE BREACH, DEAR FRIENDS!!!

    P.S. Karin DiMauro, once I get an offer on a rehab accepted, Eileen is my first call :P

  • Rehabber · Niantic, CT · Member since 2012 · 443 posts · 150 votes
    13y

    Sounds like fun, Daniel Nield! There are some decent answering services out there if you want to make sure callers always get a live person, 24/7. I've heard speakers recommend getting it, while it seems to me other investors also do fine handling the call volume themselves. Whatever works for you!

    Glad the class went well. I agree, it's not necessarily about the money, but in saving some time and speeding up the learning process. (As long as the teacher is legit, of course.)

    Hope that migraine's gone away. You have offers to make! :-)

  • Rental Property Investor · Houston, TX · Member since 2013 · 476 posts · 294 votes
    13y

    Daniel Nield Interesting story. I cringed a bit when I read "but I haven't had time to count my missed calls and emails"...

    With a couple of successful start-ups under my belt, I can't state how paramount it is to promptly convert call-backs into sales or at the very least, a solid connection.

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    You're absolutely right, Sam, but I can only talk to one person at a time. I honestly wasn't expecting such a high call volume. The worst part is, every call I've made or received today has dropped.

    Let that be a lesson, folks! A Laptop and a Cell phone are great tools, but invest in a darned land-line, and a decent home office setup.

  • Severna Park, MD · Member since 2013 · 7 posts · 0 votes
    13y

    Great story Daniel Nield ! What is the price difference between doing the letters yourself versus outsourcing them? I would think for the time involved you could free up some of your marketing time to take the important things-the calls and spending more time with that precious daughter!

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    the minimum order I found on yellowletters.com was for 250 at $1.36 a pop, so that'd be around $340. My first set of letters only went out to 80 folks, the rest got post-cards. Materials and 1st class postage on my in-house yellow letters comes to about $0.57 per, so $45.60.

    I'd say I spent maybe an hour getting my yellow letter template put together and the mail-merge run, and maybe a half-hour getting printed. Even if I were to send my excel sheet in to someone else to mail, I STILL would have had to scrub the data first, so that's kind of a sunk cost in time no matter how I do it. A lot of the time that I spent formatting my mailings, stuffing and stamping was just me figuring out how to get a decent work-flow going, and that's going to be high no matter how I set it up. Now that my systems are in place, anything going forward will be done much quicker.

    Once I get my first deal done, then yeah, I'm absolutely going to out-source that, as well as the whole virtual assistant thing, but until I have the influx of capital, everything's on a shoe-string budget, and as a direct result, will be slow-going. I can afford to trade my time for money right now, but not money for time. I'll always have more than I need of one, but never enough of the other.

  • Rental Property Investor · Houston, TX · Member since 2013 · 476 posts · 294 votes
    13y

    Sounds good Daniel Nield, best of luck!

  • Real Estate Investor · Buzzards Bay (Bourne), MA · Member since 2012 · 208 posts · 28 votes
    13y

    Welcome Daniel Nield. Great job getting that list perfect. Love to hear the results. We do a lot of direct mail as well with William Roberts and John Fossetti who are part of my team. It works and we are always looking to improve on it.

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    So I just got back from a VERY productive meeting with an out-of-town landlord who's tenants just moved out. He's back in town to get the house ready to be shown for sale. He responded to my yellow letter a week and a half ago, and told me he'd be in town this week. Turns out, his exclusivity contract with his Realtor just expired on Monday. So I walk in, and take the tour, and this place is NICE and BIG, and he's sick of landlording from Arkansas. He's had it listed for a little more than the comps I've pulled, but still a decent price. He tells me that he's going to re-up the contract with the Realtor next week, and have an open-house next Sunday.

    "Go ahead and cancel that," says I, the savvy REI, "I'm going to lease-option this house from you." We settle on a purchase-price and rent that's a little bit more than he was getting now. And I already have a list of pre-qualified, cash-paying tenant-buyers as long as my arm. The first person I call just happens to be across town from the property. We meet at the house, he tours it, and agrees to MY rental fee. After first-last-security deposit is paid, he and his family are moving in, my new best buddy has his house rented, and I'm making $200 a month until they qualify for their loan in about a year or so, at which point I get the difference between what I've negotiated my seller down to, and what my buyers have already agreed to pay.

    I go out to my car to get my paper-work, and find that I have several copies of contracts for cash-offers, but none for lease-options.

    ...are you @#$%ing kidding me?

    So, tomorrow is going to be an interesting day. I swear to God, I hope no one else calls the guy.

    And to think: his name was at the top of my list as the very first person I ever mailed a yellow letter to...

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    So, after my tenant-buyers decided not to proceed with the house, the guy decides he doesn't want to lease-option to me after all. My getting financed is out, and I wouldn't even bother bringing this deal to my cash buyers. The margins are just too thin to partner with anyone on. There's money to be made in the deal, I just don't have the cash reserves to make it work, and can't afford to speculate.

    Haven't had any responses to my mailing campaign in about a week and a half. Craigslist is giving me plenty of rental and lease-option responses, but not a single name for my seller's list. I must be doing something wrong, but for the life of me, I don't know what that is.

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    UPDATE: My "first deal" is officially dead.

    Whatever, NEXT!

    One of my contacts from Craigslist asked me to go take pictures of a place he and his partner had under contract. They're an hour or so away from the place, and I was heading that way anyway. Took 2 hours, and about 400 pictures. Did my first-ever preliminary repair inspection (I am not a licensed home inspector, and they knew that going in). Cash buyer picked it up today for what my guys were asking. $10k assignment fee, of which I'm going to be the recipient of 10%. For 2 hours of my time.

    There's money to be made in this business, folks. You just have to seize the opportunities as they present themselves.

  • Rental Property Investor · Buffalo, MN · Member since 2010 · 511 posts · 92 votes
    13y

    @Daniel Nield great job!!

  • Wholesaler · Avon, CT · Member since 2013 · 24 posts · 8 votes
    13y

    Hey guys,

    My Craigslist ads have borne fruit! A seller has had his place on the market for a year while he moved to Boston. His company hired a relocation firm to get his house sold for him.

    Alls I needs is a VOD letter to make a cash offer on the deal. As-is ARV is $672k, asking is $500k. Needs paint, carpet and landscaping. Working on getting it as an L-O with little-to-no out-of-pocket, but cash IS king, after all.

    Cake-walk.

    Life is good.

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