postcard marketing to absentee owners
I've sent out two postcard mailings now over 2 months to the same list of absentee homeowners in a particular are in the DC region, but gotten only 1 call (mailed 700 people each time). My list was generated from the tax records (via MLS) which can potentially be outdated though. (but it's free). I used the same postcard twice now.
So here's my question: how do I determine why my mailings aren't getting any response? My mail qtys are too small to really do testing of different marketing pieces, so I don't know if it's the mail piece, the list, etc.
I was planning to mail this same list a 3rd time in a few weeks. Would you suggest I try again with a letter to the same list (law of repitition) or should I make an assumption that my list is bad and go out and buy a new list of absentee homeowners?
Thanks!
Dan O.--thanks for your reponse. I have not called them. I don't have their phone #'s for the most part, but could try doing a reverse lookup. good idea. I don't think I can call all of them, but could call a sample and see how it goes. thanks again.
Still wonder how I find out what's actually not working though.
Dan
Another question to ask; what should the frequency be in mail-outs? Once/month, once/quarter, twice/year, etc?
Your response rate is a direct reflection of the amount of time/money you put into your advertising.
For instance, if you lived in Gainesville, FL, your absentee owners would be getting your postcard and a letter from me, personally addressed and signed in blue ink.
Who's do you think they are going to pay more attention to?
It sounds like you are doing great with COVERAGE, just not as good with IMPACT.
What kind of postcard are you mailing out? Is it a generic "we buy houses" postcard? Did you create the postcard yourself?
A lot of new real estate investors that don't know any better will use a generic postcard template and message that either came with a real estate investing course or they saw online.
This is a huge mistake.
You need to grab your prospect's attention by being different. If you're using a postcard 15,000 other investors are using, you can pretty well pitch the idea that you're being unique out the window.
If you can't write a provocative, compelling postcard of your own, you should find someone who can.
Direct mail is a multibillion dollar a year industry, and your postcard has to compete for the attention of the homeowner. you literally have a split second to get their attention or your postcard is going straight into the trash.
By being provocative or controversial you can dramatically improve the chances that your postcard will get looked at. Remember, direct mail only has about a 1% response rate. It can take seven mailings or customer contacts to get a response.
Don't automatically assume that your list is bad. Before you reach that conclusion, you really need to test another postcard against the same list.
Good luck!
Peter Vekselman
Thanks for all the suggestions. I created the postcard myself and personally think it's catchy, but it may not be so. One downside is that it has been 4x6 b/c postage is less, rather than something bigger like 5x11 or even 5x8. I think I may try mailing one more time, but switch to a letter this time that has a specific message for the pains of a landlord, rather than a generic message that can go out to any homeowner who might need to sell.
There is a proven percentage of return on number of hits, whether it be mailings or in-person contact. It is much lower with mailings.
Understand that these poor people are being targeted by many other interested parties, realtors, investors, etc. You have to stand out and be consistent.
My greatest success has been with absentee owners because they are a natural demographic. In most cases they are not emotionally tied to the property (although that is not always the case) and they are much more open to talking about the property. But I have cold called them and then popped the more promising ones into my database and continued to mail to them once a month.
Mass mailings are an expensive proposition with very little return. It is all about the personal connection. You would be surprised how many of these people have listed phone numbers.
I feel that using Search Marketing ie..Google Adwords get you far better, cheaper, great ROI , demographic and geo targeted leads anyday than sending postcards any day. Search Marketing allows you to test and tweek everyday.. You cant do that with postcards. Just think outside the box when it comes to keywords and the profile of the people who are motivated..
I have got the same issues and looking for help, marketing efforts are returning unsuccessful, or success rate is quite low, Do you think its due to a drop in property market?
What are some key points to mention in letters/postcards to absentee owners? I'm not sure if short and simple or specific and detailed is the way to go, for my letters to absentees.
What do you think is most effective?
Thanks,
Fred
In some markets (Phoenix for example) a high percentage of absentee owners are your fellow investors. I often get 10 of these mailings a week, and they go straight to the recycling bin, no matter how persuasive the marketing. If you could find a more refined mailing list (one that excluded folks like me), you would probably get a higher number of responses.
I switched from generic postcards to absentee owner-specific letters in my 3rd mailing and here are some important learnings:
1) I actually got some returned mail with my letters, which I didn't get with my postcards, despite mailing them 1st class. The returns are good news b/c now I can cross off those bad addresses from my list.
2) I have gotten 2 responders (actually talked to me) so far out of about 300 mailed letters, and generally higher call volume calling my recorded message (can't prove it's from my letters, but likely given the timing).
3) My letter was brief (one page) and highlighted the pain points for tired landlords (vacancies, repairs, late payments, expenses, etc.)
Still not yet getting motivated sellers calling me, but at least I'm getting a few calls. That's a start.
I made up my own postcards out of colored card stock and mailed it to 200 absentee owners of 2-4 unit properties. I chose postcards because the postage is cheaper. I got 2 responses, one which is a good wholesale deal, the other a commercial property I don't know what to do with. I think 2 calls out of 200 mailings is pretty good. Maybe you need to target a different area?
Duncan,
would you mind elaborating on how you use google adwords to market? I understand pay per click adword marketing, but how do you get the ad in your own area? Do you find local websites such as realtor's sites that accept google ads and site target your ads? Any other sites you can recommend? Or does google have some other geographically targeted feature?
can anyone share examples of what to say in a letter to an absentee owner? Do you mention anything about them potentially financing?
Thanks,
Fred
I agree with Duncan,
Google Adwords is in most cases cheaper and you can control it, adjust it, target it, and your results with be visible quicker.
And if something is not working out, you can quickly adjust the ad, keywords and target market.
The best part, you can start building your list of buyers or investors in the next 5 minutes.
And if you want to pursue direct mail, I would suggest sending out a yellow letter. It might cost more but your ROI will be better.
By the way, typical direct mailing gets about 1-3% return. If you can get 1-3% of people to call you back, your doing pretty good.
Peter
Originally posted by Duncan Wierman:
I feel that using Search Marketing ie..Google Adwords get you far better, cheaper, great ROI , demographic and geo targeted leads anyday than sending postcards any day. Search Marketing allows you to test and tweek everyday.. You cant do that with postcards. Just think outside the box when it comes to keywords and the profile of the people who are motivated..
I am still looking for a proven system in wholesaling that works. I have a CRAZY list of buyers but am having a hard time finding properties.
Originally posted by Fred S:
can anyone share examples of what to say in a letter to an absentee owner? Do you mention anything about them potentially financing?
Thanks,
Fred
My letter doesn't talk about financing. It stresses the pain points of being a landlord (vacancies, late rent, making repairs, tenants destroying property, maintenance expenses and hassles) and the benefits I can provide in buying the house (as-is, quick, cash, hassle-free, etc.)
if you absolutely want to find a potential seller (or sellers) and learn more about the area your trying to buy in - here are a few tricks.
what would you rather have - a list of 700 names on an excel spreadsheet from the local tax base - or a list of 40 names of real sellers that you crafted yourself.
a few tips --
pinpoint the area you want to purchase in.
drive around that area and write down every rental property that has a hand scrawled for rent sign. Call them and begin your discussion on purchasing.
If you call more than 12 of them, you will get 8 that answer the phone and 1 that is interested in selling (as they are probably a motivated seller with a property for rent).
one of the keys on the 8 that answer is to ask if they know other landlords or homeowners that have properties for sale. Write down their names and add to you list.
then call those potential sellers - and repeat.
basically, what your doing is "farming" the area.
not only will you build a quality list of potential sellers - but you will learn more about that area and whether it is a great place to buy - or a dump that you need to get away from as quickly as possible.
yes; this method takes a little bit longer than buying a list. But it gets you straight to the source - the actual seller, and helps you learn more about your area that your trying to buy in.
best of luck in your marketing.
I was vacationing in DC last year and heard a lady talking that was very interesting.
The city of Baltimore has a list of abandoned homes that you can download from their website. Now that is a goldmine to mail. Even if you do not live in Baltimore, it is certainly within driving distance. If I lived up there I would be mailing this list every 6 weeks with a letter. Not a Postcard.
Also, do you make it easy for them to respond in your postcard? Do you have an 800 number, web site and email address? All paramount if dealing with absentee owners.
Post Cards/Mailings sound great yet much to expensive. Also, you can't really close them, you have to hope they call you.
Does anyone know of a good automatic system to do a large amount of reverse phone lookups once you do have an absentee owner mailing list in word document or excel spread sheet?
I know we can simply go to white pages and do the reverse lookup individually, but that can take days if you have a large list.
Thanks in advance.
Cesar
Here is a Sample. I hope it helps you.
Dear Homeowner,
I am writing you, because I am interested in purchasing your property located at ...... I live in ....... and I purchase properties throughout the tristate area. Currently, I am working on projects in the neighborhood, which is how I learned of your property.
Please call me at (XXX) XXX-XXXX, so I can tell you how we can buy your property quickly, with no hassles, and most importantly, at a fair price. I purchase the house directly from you, so there are no real estate commissions or extra fees coming out of your pocket. Furthermore, I always make cash offers, so you never have to worry about delays resulting from a buyer trying to qualify for a mortgage and wasting your valuable time.
I’ll be glad to personally tell you more about how we can work together. All calls are completely confidential and there is no obligation whatsoever. Even if you are not interested in selling at this time, call (XXX) XXX-XXXX, so I can help you with determining the value of your property. You should also keep this letter for future reference, since things in life have a tendency to change unexpectedly. Thank you for your time and consideration and I look forward to speaking with you.
Sincerely,
xxx-xxx-xxxx
P.S. If you would like to e-mail me information and pictures of your property, please send them to [email protected]