Professional · Denver, CO · Member since 2013 · 69 posts · 29 votes
I CANNOT FIND the answer to these basic question on BP (I'm sure I'm just not looking in the right spot - Aahh!) HERE IS MY DIRECT MAIL CAMPAIGN PLAN. 6 mailers (at least) to a targeted list of approx 500 properties (vacant and distressed found by driving neighborhoods once a week eventually growing to 500) once a month for 6 monthes, scrub the list, keep sending mailers to the remaining and add new properties to get back up to 500.
OK, my 4 QUESTIONS are: Should I send a mix of "handwritten" personal letters (definitely not yellow letter since everyone else seems to be doing this - hah. Planning to send a small folded white sheet with blue "handwriting" (I turned my handwriting into a font) writing in a small envelope) and postcards (planning oversized) in my 6 step campaign?? If yes, should my personal letter seem like it is from a different person than my postcard and not have my business name?? Should I write a different message in each personal letter and each postcard or should it be the same message?? Does anyone have suggestions for my marketing campaign?? THANK YOU!!!
Wholesaler · Port Richey, FL · Member since 2013 · 76 posts · 40 votes
12y
Well, I did direct mail marketing for 6 of the 8 years that I was investing in RE, and I've spent my time since then doing direct response copywriting, so I can throw my hat in here...
First, targeting, targeting, targeting, targeting, targeting, and did I mention, targeting?
I never put money into direct mail just to houses that were abandoned. Just because no one is in them, doesn't mean they're in any kind of distress.
Now, I used a service called 'Foreclosures Daily' (which last I heard had gone out of business, but I saw something very similar to it on SREIA's website today, so maybe they're back, or a replacement is...) I subscribed to 3 counties and every day, I could log in to the site, and get the lists of every Lis Pendens that was filed in the clerks' offices of all 3 counties the day before.
*If your county(ies) have their public records searches available online and you're computer savvy, you can use macros to mine the same data every day. (You can also outsource the macro creation to someone who is computer savvy if you aren't, and expect to pay $50-$75 an hour for them to do it. Hours will be dependent on the number of counties you want to mine data from.)
Next, I used Microsofts Streets & Trips program to create a route to go see all of these houses on the list that day, and though knocking on doors or leaving door hangers did yield some results, what I was really out there looking for was the houses that were in foreclosure and had already been abandoned. Once they've left the house, the emotional attachment is gone and they're out of the mindset of 'save my house.'
Everyone got mail... 7-11 pieces (this depended on the equity in the house, as Foreclosures Daily didn't just give us the Lis Pendens Info, but ALL the public info on each property- how many mortgages, how much each was, the assessed value, the physical and mailing addresses of the owners according to the tax collector, etc, etc etc.)
I didn't do 'yellow letters.' I did a post card and then letters. All my letters were typed, but the envelopes were hand addressed by my assistant or me, and had a live stamp, and in BIG RED LETTERS had the words "Check Enclosed" written on the envelope. Inside was a very, very, very obviously not REAL check, with a GIANT "VOID" stamp right on it, with instructions to call us for a real check.
The next letter was usually an 'advertorial' with a yellow post it note attached that said "Thought you should see this," -J.
Then the remainder of the series just continued to give them more reasons to call us.
I didn't get a chance to read everyone's reply, but simply put why change a technique that have produced results continuously. Yellow letter marketing is clearly a successful way to market.
I suggest continue driving for dollars, but to find 500 vacant houses is challenging or did I miss something? You can purchase a list for $100-$200 of any niche you would like and mail to the list 6 times would be more affordable and more than likely produce better results.
Where do you go to purchase the list of a niche in my market? THrogh PO?
Rental Property Investor · Queen Creek, AZ · Member since 2013 · 368 posts · 191 votes
12y
Listsource is an excellent tool to use, if you search any thread regarding finding motivated sellers or direct mail you will see list source mentioned.
Wholesaler · Port Richey, FL · Member since 2013 · 76 posts · 40 votes
12y
Well, I did direct mail marketing for 6 of the 8 years that I was investing in RE, and I've spent my time since then doing direct response copywriting, so I can throw my hat in here...
First, targeting, targeting, targeting, targeting, targeting, and did I mention, targeting?
I never put money into direct mail just to houses that were abandoned. Just because no one is in them, doesn't mean they're in any kind of distress.
Now, I used a service called 'Foreclosures Daily' (which last I heard had gone out of business, but I saw something very similar to it on SREIA's website today, so maybe they're back, or a replacement is...) I subscribed to 3 counties and every day, I could log in to the site, and get the lists of every Lis Pendens that was filed in the clerks' offices of all 3 counties the day before.
*If your county(ies) have their public records searches available online and you're computer savvy, you can use macros to mine the same data every day. (You can also outsource the macro creation to someone who is computer savvy if you aren't, and expect to pay $50-$75 an hour for them to do it. Hours will be dependent on the number of counties you want to mine data from.)
Next, I used Microsofts Streets & Trips program to create a route to go see all of these houses on the list that day, and though knocking on doors or leaving door hangers did yield some results, what I was really out there looking for was the houses that were in foreclosure and had already been abandoned. Once they've left the house, the emotional attachment is gone and they're out of the mindset of 'save my house.'
Everyone got mail... 7-11 pieces (this depended on the equity in the house, as Foreclosures Daily didn't just give us the Lis Pendens Info, but ALL the public info on each property- how many mortgages, how much each was, the assessed value, the physical and mailing addresses of the owners according to the tax collector, etc, etc etc.)
I didn't do 'yellow letters.' I did a post card and then letters. All my letters were typed, but the envelopes were hand addressed by my assistant or me, and had a live stamp, and in BIG RED LETTERS had the words "Check Enclosed" written on the envelope. Inside was a very, very, very obviously not REAL check, with a GIANT "VOID" stamp right on it, with instructions to call us for a real check.
The next letter was usually an 'advertorial' with a yellow post it note attached that said "Thought you should see this," -J.
Then the remainder of the series just continued to give them more reasons to call us.
Well, I did direct mail marketing for 6 of the 8 years that I was investing in RE, and I've spent my time since then doing direct response copywriting, so I can throw my hat in here...
First, targeting, targeting, targeting, targeting, targeting, and did I mention, targeting?
I never put money into direct mail just to houses that were abandoned. Just because no one is in them, doesn't mean they're in any kind of distress. ...
EXCELLENT post! Thanks for sharing your experience and ideas with all of us!
Investor · Los Angeles County, CA · Member since 2012 · 962 posts · 279 votes
12y
I've been doing a lot of "driving for dollars" finding low maintained homes in my area (Los angeles) and then finding the owner info on propertyradar.com and mailing them. We also have been direct mailing high equity non-owner-occupied owners that we have found doing propertyradar searches as well as searches on the county records etc.
Direct Mailers:
We basically have letters stating that we are "cash buyers" that will purchase their property "as-is" without repairs etc. We also offered them referral fees of $500 and have had 4 people contact us about this, but their referrals have not amounted to anything.
We have hand written, typed, mailed, and hand delivered about 1000 letters over the past 4 months. Some I attach my business card to stating I'm a direct investor, and some I have my realtor send out directly to homes I'm interested in certain farms like Long Beach, Santa Fe Springs, Paramount, Compton, certain inland emppire homes etc.
After contacting over 1000 owners in the past 4 months in our area we've had 3 phone calls, which were just curious people fishing for more info. Hopefully some owners will keep our info and contact us in the future.
Hopefully this will amount to more. Perhaps my market is too saturated and "hot" with investors. Or I need a different strategy, volume or location
I own several houses/ duplex/ quads in this area and receive about 4-9 similar letters per month from realtors or directly from investors.
Wholesaler · Port Richey, FL · Member since 2013 · 76 posts · 40 votes
12y
Will,
You say you are mailing to non-owner oc, but are you checking to see if there is 'distress'? Checking for foreclosure filings, divorce filings, probate filings, etc, will give you much better results than just non-owner oc.
Wholesaler · Pine, AZ · Member since 2014 · 40 posts · 6 votes
10y
Here's my experience so far: I purchased an inheritance list from USLeadList..125 properties in N. AZ, I now live in Phoenix, so these properties are north of me 1.5 hours. US LeadList send the yellow letters in small unsealed envelopes. Three responses immediately; 1 said take me off list, not for sale; the other left phone number but not message, calling back but no voicemail set up, the other was a realtor wondering how I knew they inherited the property.
I signed up for ReboGateway for a year. Got a list of 20 probates recently in my county so I sent a professional letter stating I'm a realtor and investor and would like to help them if they want help by either buying as-is or listing on MLS.
Plan to sent out about 150 letters, my pro letter stating I'm a realtor and investor to recent divorce filings.
I will soon follow up to the inheritance list with a casual letter stating I'm contacting as an investor and disclosing that I am a realtor but interested in buying as an investor.
I also plan to mail to non owner occupied with tax defaults and/or notice of trustee's sales.
However, these are not big numbers...and in a numbers game...I feel like this won't truly produce any results...no being negative, just doing the math.
Trying to figure how to get a larger list, what to send, how often.....hand addressing envelopes in very time consuming.
Easy route...just send yellow letters to large lists and perhaps that will work?!?
So undecided on which way to go and what to do.....I do believe the more mailings the better.
It's late and I just read a lot of posts, and for some reason, feel more confused....praying for clarity.
Investor · Phoenix, AZ · Member since 2009 · 15 posts · 9 votes
10y
I'm not sure I can help, but I'll throw in my two cents as an investor and someone who's spent a career in marketing. The response you got to your mailing was realistic although not at all satisfying. I spent a good deal of money on Yellow Letters and we got angry calls, rambling weirdos, and one woman who assumed the letter came from a 'special needs' person. "Sweetheart, you can't afford my house," she said in her best condescending tone.
In the end, no one wanted to sell their house to us because of the Yellow Letter. People were more suspicious than curious.
Marketing can sometimes produce great results but you never know what's going to happen. Success comes because you keep at it.
Let me suggest that Yellow Letters don't lend themselves to a followup campaign. I prefer to send several pieces - 4-7 letters or postcards that let people get to know you through dependable regularity. If you keep mailing something every month, eventually someone is going to call you. Even better, drive people to your website where they can sniff around you and what you do without ever calling first.
Investor · Westport, MA · Member since 2016 · 87 posts · 9 votes
9y
@Amanda Fox , Reading through the post above and wondering how your campaign has evolved over since you first posted 4 years ago. Also, looking for advice of what was most successful for you.
Investor · Asheville, NC · Member since 2017 · 506 posts · 404 votes
8y
I'd love some insight into what to say when folks call. Is it weird that I'm worried about getting a call? lol Also, how do I make an offer on a house I've never been inside of? Once I get the call, how does the rest of this work? lol
Investor · Tulsa, OK · Member since 2020 · 2 posts · 0 votes
6y
Just finding this thread and it's so helpful - thank you everyone!
@Jody Schnurrenberger I am new to RE investing and wondering the same thing about what to do when someone finally calls! Have you had any experience since this post three years ago? Anyone else have advice for when someone calls?
Just finding this thread and it's so helpful - thank you everyone!
@Jody Schnurrenberger I am new to RE investing and wondering the same thing about what to do when someone finally calls! Have you had any experience since this post three years ago? Anyone else have advice for when someone calls?
Back in the day when I was still a little mortal, I was terrified too.
What if someone calls and asked me what if the 3 network capital 0.4 APR Blue smurfs Mortgage depreciation on my house gets nullified and the bank implodes on my matured mortgage interest rates BBQ Pork chops? Then what?!
Don't worry. These questions never occurred. All you have to do is talk to the seller. All seller questions have always been very easy to answer. Just know how your procedure works and if every you get asked anything you don't know tell them you don't know but you will find out. You shouldn't be afraid to talk to them, you should hope it happens sooner than later because this HAS to happen to make money and the sooner it happens the sooner you will make money!