Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
I just wanted to share the results from my most recent postcard campaign.
So my first campaign was just over 200 yellow letters to a list of absentee owners with equity and I got above 12% response rate, but most were just tire kickers (I know 200 isn't many but glad I started small because the flood of calls I got were overwhelming the first time). So my second go around I bought a list of 650 absentee owners with equity. I used click2mail.com and created a mail merge postcard with the owners name and property address to catch their attention. With this most recent postcard campaign I received 5 calls. 5 calls on 650 mailers? I double and triple checked to make sure all of the information was correct, and the calls I got were to the correct addresses.
My thinking was that I would get less calls but more interested sellers. The yellow letters create a lot of action but most were just curious.
Real Estate Broker · Athol, MA · Member since 2013 · 22 posts · 16 votes
12y
You have to be careful with click to mail. I noticed that when I was ordering absentee owners from them a great deal of them were post office boxes. Turns out that these were not absentee owners at all, they just had a PO Box. Also, the equity calculations are little bit off. as a wholesaler, my margins have to be tight as most of my investors want to buy between 60 and 70% of after repair value. If I'm getting more owner occupants than absentee owners and the equity numbers are off, this can pretty much kill the deal. I spent hundred and 120 dollars on a list of names from them, which I had them pull because they told me that they had a special way of pulling for equity (, not true by the way) and I still got more than half with only 5% equity or none at all. They refused to refund my money and told me I had to purchase another list. that won't help me any if it's the same criteria that they use the last time.
I have a question. Knowledge the every door direct mail program is out from the post office I have been thinking about sending postcards using that. I have spoken to other investors in some like it and say it works for them and the others don't. It is a lot less expensive to send out and you can reach more people. At $.16 per postcard, I can send out 700 postcards for less than sending out 300 letters, and yes they may not be targeted but I would choose ZIP Codes where I know there is a high amount of rentals and absentee owners. I would appreciate any feedback from you guys, especially if you've already used it and it worked.
Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
12y
I buy my lists from listsource. I wouldn't trust click2mail with my list. I would rather do it myself and mail merge it so I know exactly what criteria I am marketing.
If you don't like getting calls from people with no equity I don't think you'd like EDDM.
It may be an option if you use a postcard that states "$500 for any referral we close" or something like that.
I don't know because I haven't done this myself, but I feel like the return rate would be so horrible that it wouldn't be worth the money saved on the campaign.
At $.16 per postcard, I can send out 700 postcards for less than sending out 300 letters, and yes they may not be targeted but I would choose ZIP Codes where I know there is a high amount of rentals and absentee owners. I would appreciate any feedback from you guys, especially if you've already used it and it worked.
EDDM goes to every door, not tax mailing address. So if you select an area with a lot of rentals and/or out of area owners, your mail piece will be received by tenants at those addresses.
So much focus by so many here on BP on absentee landlords with equity. My best deal this year was a property with no equity. I just bought and sold one last week that was owner occupied.
Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
12y
The main reason that direct mail is viable is because it can be highly targeted. Our tests with EDDM have not been encouraging in the short term (immediate response). It may be a good method for brand building in the long term. The best lists are absentee owners with equity and the best source is Listsource.com. Hands down.
Motivated sellers will respond to the right messages. If the wrong people are responding, either the list or the message is missing the mark.
Response rate is ultimately meaningless. You really need to look at ROI on marketing compared to revenue. Instead of response rate, we focus more on what is working and refine our strategy to do more of that and less of what is not. Give yourself 6 months to get your marketing dialed in right.
Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
12y
@Account Closed Good point on the EDDM!
I don't think any of us are saying that absentee owners with equity is our only marketing strategy, it just happens to be the one we are discussing in this forum.
I am almost saying that.... And I have to also agree with K. Marie... Choosing a marketing program which fits ones style and temperament is paramount. Especially when it is left alone by the masses. That said the key groups are still those property owners with an equity base or with the ability to reduce their LTV to cause their property to be sold.
Personally I love the low hanging fruit and seller who make me offers. I don't have time nor the desire to create relationships with sellers... Just tell me what you want and if it fits my model then you get my money...
At $.16 per postcard, I can send out 700 postcards for less than sending out 300 letters, and yes they may not be targeted but I would choose ZIP Codes where I know there is a high amount of rentals and absentee owners. I would appreciate any feedback from you guys, especially if you've already used it and it worked.
EDDM goes to every door, not tax mailing address. So if you select an area with a lot of rentals and/or out of area owners, your mail piece will be received by tenants at those addresses.
So much focus by so many here on BP on absentee landlords with equity. My best deal this year was a property with no equity. I just bought and sold one last week that was owner occupied.
Think beyond the low-hanging fruit. :)
hi k, could you elaborate a little more on how you structure the no equity deal? is it not the typical wholesaling? did you find your owner equity buyer by posting the house through the mls? was the loan amount a lot less.than the arv? did you take it by taking over the loan and paying seller a bit cash upfront? thanks.
At $.16 per postcard, I can send out 700 postcards for less than sending out 300 letters, and yes they may not be targeted but I would choose ZIP Codes where I know there is a high amount of rentals and absentee owners. I would appreciate any feedback from you guys, especially if you've already used it and it worked.
EDDM goes to every door, not tax mailing address. So if you select an area with a lot of rentals and/or out of area owners, your mail piece will be received by tenants at those addresses.
So much focus by so many here on BP on absentee landlords with equity. My best deal this year was a property with no equity. I just bought and sold one last week that was owner occupied.
Think beyond the low-hanging fruit. :)
hi k, could you elaborate a little more on how you structure the no equity deal? is it not the typical wholesaling? did you find your owner equity buyer by posting the house through the mls? was the loan amount a lot less.than the arv? did you take it by taking over the loan and paying seller a bit cash upfront? thanks.
I'm getting the deed from the owner for a consideration. And then negotiating a discount with the lender as the new owner. It has risks since the lender doesn't have to work with me or discount the loan.
Your copy must need some help on the postcard because even the worst mailings I've done have yielded a minimum of 3% response rate. My cards that I use now yield over 10% nearly every time.
Your copy must need some help on the postcard because even the worst mailings I've done have yielded a minimum of 3% response rate. My cards that I use now yield over 10% nearly every time.
My postcards do so well, I stopped doing letters.
So I've realized since I wrote this that it really depends on what we are doing with the leads. Because we have been sending to these lists for a couple years we are getting a much higher response rate but also a much higher close rate also. We are buying for homds, flips and also partnering on wholesales now.