How to select Zip Codes for Direct Mail Campaigns

Question

Hello,

I'm moving forward on my 1st direct mail campaign for wholesale leads.

Anyone have advice on how to analyze markets to pull zip codes to target?

I'm looking to work in Oakland and Sacramento, but am unsure on how to analyze and pick good areas.

Any tips?

PS. If anyone wants to leverage my ad spend, I'm happy to send leads your way in trade for showing me the finer points of closing deals.

Brett Russell · Answer

@Ryan Zweng @Jeff Jamieson @Sergey Tkachev , I actually just saw a video from Joe McCall about this very subject.  So, I can't take credit for it.

Basically, you use listsource to find the most active zip codes for investors without ever buying the list.  I believe you do need to create a listsource account, though.

--Sign in and choose a premade list by choosing Investor--> Absentee.  This will give cash as well as financed sales made to absentee owners.

-- Choose your county and then if wanted property type (i.e. SFR, duplex, etc) and last sale price.

--Then specify last recording date of 6, 9 or 12 months (whatever seems appropriate).   He recommended 6 months, but numbers were really low where I was looking, so I did 12 months.

--Likely should put "no preference" to the corporate owned selection so it includes LLC purchases

-- Click purchase list, but on the checkout screen, choose "partial list" and the you can sort custom by zip code.  You can then export that table (zip code and number of sales) via email to yourself.  (and you never have to purchase anything)

Now, you can use the table to determine which zip codes have the most activity.

Hope that helps.

Sergey Tkachev · Answer

@Brett Russell , thanks for the followup - I just realized that I was thinking in terms of competition from other wholesalers, whereas the general idea is that the cash buyers are investors that would buy our properties that we have under contract (our buyers).  Makes sense.

@Joe McCall - thanks for putting the time into doing the video!!

Joe McCall · Answer

Hey guys - here is a short video I just did on how I find the most active zip codes where investors are purchasing properties... for free on ListSource, and also with "Find Cash Buyers Now"

http://www.screencast.com/t/0bhm4X8x1kzs

Shout out to @Brett Russell - thanks ;)

Sergey Tkachev · Answer

I'm also interested in following this thread.  I'm about to send my first test campaign.

@Ryan Zweng , are you familiar with the Sacramento area?

Ryan Zweng · Answer

Thanks for the advice Jon. Any leads from your 1st campaign?

Joe McCall · Answer

By the way - I can't stress enough the importance of knowing where your cash buyers are buying, and who your cash buyers are.  I always recommend for beginners to start with building your cash buyers list.  Everything else becomes so much easier after that.

Brett Russell · Answer

@Sergey Tkachev , the thinking I've seen most people have is that lots of investor purchases means investors like that area and would presumably want to buy more, so focus on those areas.

Sergey Tkachev · Answer

@Brett Russell , thanks for the tip!

As a followup, do we want to mail to the zip codes that already have a lot of investors sales or instead avoid those areas?  I would think sending to those areas would mean we will have more competition, but on the flip side, does that mean that those are the areas where sellers are more open to sell?  I can see it being both ways.

How to select Zip Codes for Direct Mail Campaigns

Most Popular Reply