Investor · Waynesville, NC · Member since 2014 · 408 posts · 121 votes
So I have gone several months now in my home market without finding a decent deal to fix and flip, and I finally decided enough is enough. I have read so many stories here of folks who have successfully implemented direct mail to build their business, and I have decided it is time to join their ranks. Today I put my order in for 550 yellow letters using Michael Quarrles' yellowletters.com.
The list I generated had about 1100 names, so I decide to break it in half and target the first 550 for the next 5-6 months with a monthly mailing. The list included absentee owner, in and out of state, 10+ years of ownership with values under $200,000.
I am nervous and excited about what comes next. I'm not one to love talking on the phone or negotiating, but it is time to overcome that and take the bull by the horns.
The point of this thread is to keep me accountable and to hopefully document some success stories along the way. I am also hoping to get input from people who have been down this path who can share their wisdom.
Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
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@Account Closed Congrats! Once you start fielding the calls you will learn as you go. Practice makes perfect! Taking action is the most important part, you can always ask questions if you need help.
Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
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@Account Closed ....yeppers, you have to overcome your lack of desire to talk on the phone. After marketing, it's one of the most important things an investor must be able to do. Building that relationship over the phone isn't always easy, but if you can get the other side to laugh, it will definitely help lower the owner's salesperson shield and make it easier to negotiate.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
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Interested to see your response rate each market is different of course.
I repond to many yellow letters I receive each month.. 95% of the folks I call never call me back... I have posted about this many times on BP not sure why this is.
So feedback from you on your mailings will be good intel... if you can name the general market IE CA.. TX etc etc.
Investor · Waynesville, NC · Member since 2014 · 408 posts · 121 votes
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Thanks everyone. I will definitely keep you posted on my results.
@Jay Hinrichs - the market is small county just west of Asheville NC. It is in the mountains of Western NC, and a popular tourist destination. Many of the absentee owned homes are vacation homes, so I am not sure what the response rate will be. I will find out soon enough I guess!
Real Estate Broker · Asheville, NC · Member since 2013 · 82 posts · 29 votes
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Awesome! Good luck on finding a new acquisition @Austin. I hope you find too many options and have to wholesale a few to other BP members this spring ;).
Investor · Richmond, VA · Member since 2013 · 47 posts · 11 votes
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@Account Closed says....hopefully you will have too many leads and will want to wholesale:) (Pat are you guys still aiming for Asheville in Spring?)
I would love to help....reach out for anything and I will do my best. Phone calls or talking/following up with homeowners, not completely certain if this would help, but if I can help, I will! Congrats again!
Real Estate Broker · Asheville, NC · Member since 2013 · 82 posts · 29 votes
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@Allison Ezzi , we'll be there at the beginning of Jan for a few weeks and then actually moving there in mid Feb! We can't wait! I'll contact you once we're in town to see if you're available for coffee or perhaps we can find a date that works for @Account Closed as well and all meet up!
This campaign is actually in the Waynesville, Canton, Clyde areas just west of Asheville. I certainly hope to come up with some wholesale deals, and will definitely send them your way.
Also, I'd love to hear more details on your flip in Asheville.
Syracuse, NY · Member since 2014 · 143 posts · 35 votes
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Good for you!! We're DIY'ing our first direct-mail campaign and will be sending letters out come January. I am very excited as well... but also nervous. I have a lot to learn in that amount of time.
Defiantly keep me in the loop for when either of you are around Asheville. I am back/forth NC to VA nearly every week! I will be there in the beginning of January and fully engulfed in rehab in February:) Come check it out!
Austin- the fix/flip was on the mls. it is a older home w. carriage house near montford and chestnut ( higher value) neighborhoods. It will be a tough one! Not your "average- run of the mill rehab" ( if there is such a thing). But the numbers spoke, and we took that action step!! Now we are learning how to "deal with the city" and keep contractors on task/schedule, and keep investors(private lender) happy....easier said than done, but are doing it!! So, you are marketing in between Asheville and Whittier, correct? Im not as familiar, but interested ....let us know how it goes! :)
Investor · Waynesville, NC · Member since 2014 · 408 posts · 121 votes
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Well, I can attest to the fact that yellow letters get the phone to ring. My first calls started coming in today and I've had 12 calls so far. Most have not been very good leads, but one could potentially have some promise.
I do have one question for the pros out there. When handling the calls live I've noticed the callers expect me to know about their house since it looks like I personally wrote them a letter. In fact, when I asked one caller to tell me about her house she turned the question on me and said "Tell me what you know about my house since you sent me a letter!" I just explained how her house was part of a pool that fit my criteria, but I'm wondering how you guys handle that. Do you always explain that you are an investor looking to buy in the area and they fit your criteria?
Investor · Waynesville, NC · Member since 2014 · 408 posts · 121 votes
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UPDATE:
I have had over a 20% response rate to my yellow letter campaign so far! No solid leads yet, but mailing #2 is going out this week.
This leads me to a question for the pros. Do you remove folks from your list if they are unrealistic on the value of their home? The rate of people interested in selling is very high, but the motivation is very low. I'm not sure if I should keep hitting them with regular mailings, revisit them in several months or just remove them. What do you guys think?
Investor · Waynesville, NC · Member since 2014 · 408 posts · 121 votes
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Anyone have any input on the question above?
"Do you remove folks from your list if they are unrealistic on the value of their home? The rate of people interested in selling is very high, but the motivation is very low. I'm not sure if I should keep hitting them with regular mailings, revisit them in several months or just remove them. What do you guys think?"
Investor · Chandler, AZ · Member since 2014 · 303 posts · 101 votes
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@Account Closed
I don't have any experience with direct mail, yet. However I would follow up with them, even if their values are unrealistic. You never know when a seller will be willing to take a lower offer because something came up and they need cash.
Real Estate Professional · Bakersfield, CA · Member since 2014 · 205 posts · 87 votes
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@Account Closed
Justin hit the nail on the head. We do not recommend removing people from your list. Circumstances change and they could be a deal a few months down the road.
Investor · Waynesville, NC · Member since 2014 · 408 posts · 121 votes
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Thanks for the replies guys! I will keep hitting them. The only ones I've removed from my list are the ones who asked to be removed and the ones where I didn't like the property.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
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@Account Closed - "didn't like the property"???? I haven't met a property for sale at the right price that I didn't like. I would think you could figure out how to make money on any property if you got it for the right price. You might keep that in mind. Even if you pass the lead to someone else and get $500 then that pays for some marketing for you.