Direct mail: What list would typically generate the highest response rate?
Real Estate Investor · Charlotte, NC · Member since 2009 · 46 posts · 8 votes
I'm thinking that I might do best if I purchase a mailing list. I've tried (on a small scale) mailing to the owners of properties I've driven by that look run down or abandoned with so-so success (4 calls from 73 letters, 1 is thinking about moving their elderly mother from the house and selling sooner rather than later, 1 is a realtor and is thinking about selling in the next year, 1 was a "vacation home" and would be willing to sell for $500k... 900sq/ft cabin by a pond, LOL, and one was just curious why I was contacting him).
I was thinking that probate records might be a good way to build my own list, but after much research it seems that probate deals tend to take a while after they're recorded and don't generate much response?
Would it be worth the money to buy a list of pre-NOD leads and mail to them? I'm on a tight budget, what direct mail lists typically generate the most response and uncover the most motivated sellers?
Thanks!
-Chris
Hello everyone.
As a guy who owns yellow-letters and sends a ton of mail for myself the only two lists that make sense are Free and Clears which are owners with 40% equity or greater or Pre-foreclosures which include 60|90 day lates NOD and TS.
Everyone else fits within those two groups.. Certainly Absentee owners are good, however if I were to market to them I would market to Active for rents first.. They're on craigslist and in the classified section and they give us their telephone numbers.
The cold call script is as follows...
Hi, I’m looking for _____ … Hi ______ … my name is _______ with I Buy Houses.
I noticed that you have a house for rent and I buy rentals… actually all of the time… and being a landlord myself… I know how frustrating… the rental business can be…
1. Have you thought about… selling your rental… before you spend the time and money to fix it up and re-rent it? (You have) Terrific! / Really!
2. I buy rentals… vacant or occupied… would there be a… good time… to come out and talk about whether… you want to sell… your rental? (There isn’t) Outstanding
If they don’t want to sell
3. If you don’t mind I am going to be sending you my card and checking back with you from time to time, if that is okay with you? (It is) Great
If they do want to discuss selling
4. I buy rentals just like your all of the time, and I have found that if the seller is willing… we can come up with a solution that works best for both of us, is that okay with you? (Yes) outstanding
5. Sometimes the only way we can buy the rental we look at is to take over the debt and pay you your equity, That means the loan will stay in your name until its sold, assumed or paid off. Is that a problem? ⯠Yes ⯠No
6. Sometimes even buy the house under a lease option…Is that a problem? ⯠Yes ⯠No
7. So if we can pay you your equity, guarantee and make your payments and be responsible for all repairs you will sell the home to us, right? ⯠Yes ⯠No
8. What time today would be better for you for me to come out and talk with you ___________ or ______________? (___) Terrific
9. Before I come out… there are just a few more questions… I need to ask about your house, is that okay? (It is) outstanding
10. Is the home still ⯠Vacant or is it now ⯠Occupied? Occupant Name?
11. How much do you collect in rent? __________
12. _____ Bedrooms ______ Baths
13. How many Square Feet? ________________
14. Size of the Garage? ____________________
15. How did you happen to own the home?
16. What Kind of repairs does it need?
17. ⯠Carpet ⯠Paint ⯠Roof ⯠Cabinets ⯠Electrical ⯠Plumbing ⯠Plaster ⯠Sheet Rock ⯠Cooler ⯠Heater ⯠Air Conditioner â¯Window ⯠Landscaping ⯠Clean-up ⯠______
18. What do you think the repair cost will be?____________
19. What do you think the house is worth? __________________
20. Is that ⯠Fixed–Up or ⯠‘As Is’
21. How did you come up with that Price?
22. How soon would you like to be sold? ____Days _________Date
23. Is there a Mortgage on the house? ⯠Yes ⯠No
24. What is/are the balance? 1st ________ 2nd ________3rd________
25. Are you in Foreclosure? ⯠Yes ⯠No ⯠Notice of Default or ⯠Trustee Sale...Sale Date ______ Arrearage Amount __________
26. One last thing…. When I come out… it is important…that all of the decision makers be there…. so I can come to an agreement to buy your house… Will all of the decision makers be there for the appointment? (if all of them are not here don’t go)
27. Well, ____________ I look forward in meeting you at __________…
The code violations are great however pulling the FandC is so easy that I dont recommend it. This business is all about numbers... More mail more calls more contracts more cash...
Congrats you everyone success
Micahel
I have the best luck with absentee owners when it comes to response rate..
i get between a 5 and 8% response which is huge!
the best place to get those leads is to go to www.realquest.com and listsource.com
I noticed chris that you have a 978 number...where in mass are you located??
I have not used them, but Alex suggestion of listsource.com is a name I have heard frequently from the gurus. A list that is more expensive but also not mailed to as frequently would be for 30-60-90 days late on mortgages. Those homeowners would be feeling the financial stress but not yet contacted by dozens of investors/realtors mailing to the NOD lists. If you PM me I will forward an email of one company selling them.
To Your Success,
Kyle, I've been thinking about buying 500 Pre-NOD leads from YellowLettersComplete.com, and Ted, it's my understanding that Pre-NOD's (pre notice of default) would include the 30/60/90 day late folks...
Alex, I've been enjoying your blog for the last few days! Good stuff!
I'm up in Chelmsford, MA... next to Lowell... about 30 minutes north of Boston. I saw in one of your blog posts that you travel to MA frequently? What part?
Thanks for the replies guys!!!
Chris -
Absentee owner list is good because of the sheer numbers...I get 50,000 or so leads in my metro area of 1 million. Also, the response rate from even post cards to this list is quite good. I wouldn't expect >5%...you don't really need that high a rate to get great results.
Response rate doesn't really matter unless you actually get a deal.
Another good list for has been city liens and code violations. Your county may have these recorded on public record...some do, some don't.
Awesome!
I think I'm gonna go with absentee owners in this case, as I'm wondering how many Pre-NOD's would have the equity to sell at enough of a discount for a wholesaler. Not only that, but I can put the list together myself (I've got plenty of time, but low $$$) from the tax assessors online database. This will allow me to also narrow it down to absentee owners who have owned the property long enough to be able to take a discounted sales price if they do decide to sell.
Thanks everyone!
Chris, another list that is really good is building and health code violations. The list is not readily available but you can definitely get it if you do a little bit of legwork.
Here's the phenomenal thing: the postcard I send to property owners with building code violations has a 10% to 30% response rate. This is off the charts. The reason for this HUGE response? No one else is sending them mail unlike pre-foreclosure leads like NOD and 30-60 and 90 days late.
Let's connect. I can share with you the postcard that I use as well as other details on how to get a list of properties with building and health code violations.
Connection sent! I bought a fairly small list (475) of absentee's with 40% or greater equity who have owned the property for 8+ years, I'm printing the envelopes (same handwritten look as my yellow letters) right now, gonna send half this week and half next week when I get back from NC. I'm anxious to see how these work out! Thanks to everyone who's given advice so far, and anyone who has any other ideas please lets get a good list of good lists! Thanks!!!
Scott...
Im thinking about getting back to mailers. I havent done any for at least 4 years but wondering, with absentee owners i used to answer my own phone but what do you use? voice mail, 800#?
Not sure what way to go but thinking of 800# to maybe do a pre qualify first.
Whatya think
Hello everyone.
As a guy who owns yellow-letters and sends a ton of mail for myself the only two lists that make sense are Free and Clears which are owners with 40% equity or greater or Pre-foreclosures which include 60|90 day lates NOD and TS.
Everyone else fits within those two groups.. Certainly Absentee owners are good, however if I were to market to them I would market to Active for rents first.. They're on craigslist and in the classified section and they give us their telephone numbers.
The cold call script is as follows...
Hi, I’m looking for _____ … Hi ______ … my name is _______ with I Buy Houses.
I noticed that you have a house for rent and I buy rentals… actually all of the time… and being a landlord myself… I know how frustrating… the rental business can be…
1. Have you thought about… selling your rental… before you spend the time and money to fix it up and re-rent it? (You have) Terrific! / Really!
2. I buy rentals… vacant or occupied… would there be a… good time… to come out and talk about whether… you want to sell… your rental? (There isn’t) Outstanding
If they don’t want to sell
3. If you don’t mind I am going to be sending you my card and checking back with you from time to time, if that is okay with you? (It is) Great
If they do want to discuss selling
4. I buy rentals just like your all of the time, and I have found that if the seller is willing… we can come up with a solution that works best for both of us, is that okay with you? (Yes) outstanding
5. Sometimes the only way we can buy the rental we look at is to take over the debt and pay you your equity, That means the loan will stay in your name until its sold, assumed or paid off. Is that a problem? ⯠Yes ⯠No
6. Sometimes even buy the house under a lease option…Is that a problem? ⯠Yes ⯠No
7. So if we can pay you your equity, guarantee and make your payments and be responsible for all repairs you will sell the home to us, right? ⯠Yes ⯠No
8. What time today would be better for you for me to come out and talk with you ___________ or ______________? (___) Terrific
9. Before I come out… there are just a few more questions… I need to ask about your house, is that okay? (It is) outstanding
10. Is the home still ⯠Vacant or is it now ⯠Occupied? Occupant Name?
11. How much do you collect in rent? __________
12. _____ Bedrooms ______ Baths
13. How many Square Feet? ________________
14. Size of the Garage? ____________________
15. How did you happen to own the home?
16. What Kind of repairs does it need?
17. ⯠Carpet ⯠Paint ⯠Roof ⯠Cabinets ⯠Electrical ⯠Plumbing ⯠Plaster ⯠Sheet Rock ⯠Cooler ⯠Heater ⯠Air Conditioner â¯Window ⯠Landscaping ⯠Clean-up ⯠______
18. What do you think the repair cost will be?____________
19. What do you think the house is worth? __________________
20. Is that ⯠Fixed–Up or ⯠‘As Is’
21. How did you come up with that Price?
22. How soon would you like to be sold? ____Days _________Date
23. Is there a Mortgage on the house? ⯠Yes ⯠No
24. What is/are the balance? 1st ________ 2nd ________3rd________
25. Are you in Foreclosure? ⯠Yes ⯠No ⯠Notice of Default or ⯠Trustee Sale...Sale Date ______ Arrearage Amount __________
26. One last thing…. When I come out… it is important…that all of the decision makers be there…. so I can come to an agreement to buy your house… Will all of the decision makers be there for the appointment? (if all of them are not here don’t go)
27. Well, ____________ I look forward in meeting you at __________…
The code violations are great however pulling the FandC is so easy that I dont recommend it. This business is all about numbers... More mail more calls more contracts more cash...
Congrats you everyone success
Micahel
Very cool, Michael! Thanks for sharing that script!!!
I was recently told by a guru that a list with deed transfers recorded within the last 24 months work best for subject to. Agree or disagree?
Hello Trace, I'm amazed at the response rate you had with your postcards and mailing to that list of people, any chance you could tell me more in detail how it works? I would love to try it out here in CA to see the results because quite frankly I've never even heard of that at all.