Yes. We mail to homeowners who are facing foreclosure in our target market. We send a series of 8 letters, timed to end about 3 weeks before the scheduled auction date. We are getting super good deals this way. In our letters we give them the number to a recorded message & our website so they have multiple ways to check us out and call us directly when they're ready. When we meet with the Sellers we make them a 3-part offer and let them choose which one works best for them. We just put a house in escrow today worth $130k, the principal balance on her loan is $66k & she is $10k behind on payments. Her monthly payments are $668 and her interest rate is 3.4%, and we'd be able to get $1,000/month if we rented it out. She is getting $4k at closing & $10k when we sell the house. Our purchase price is $90k and $10k of that will not be due until we fix up, sell & close the house to a new buyer in 3-4 months. We bought one last week that was even better! Yep, we use direct mail.
Hi BP family,
Great information! I'm in the process of starting my first Direct Mailing campaign and you guys have provided some great feedback in addition to advice. I'll be sure to use a bit of each.
Have an awesome day!
I do but not to home owners or even the owners of real estate at all.
I go after the REIT's, Private Equity firms, developers, syndicates and RE Funds. They get all the deals handed to them daily because they have the cash or can raise it.
What I used to do when I got started was build a list of investors, accredited investors, money mangers, IRA and Pension administrators, Attorneys and people who are in charge of others money. Use this list as an asset so that when you approach the investment firms you have something to bring to the table. You then market (Mail, email) their offering or fund/company info to your database and build the relationship that way. Some firms will even pay you a referral/marketing fee but the relationship will be worth much more down the road. Once you built the foundation you can then get info on deals that they have passed on or one that doesn't fit their criteria and then you make your move!