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Wholesaling

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Riley F.
  • New York City, NY
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First Yellow Letter Campaign

Riley F.
  • New York City, NY
Posted May 14 2014, 05:20

I just sent out my first batch of yellow letters to the Kansas City metro market, and thought people might find the first impressions of a new wholesaler of some interest. My goal was to raise bit of capital to continue to fund my buy and hold investing. I sent approximately 1000 letters which went out 5 days before this post, have had about 30 call, and have learned a bunch and gained some better questions:

1) Not every call is a motivated seller. In the KC market, which is a pretty hot market, this list has already been mailed to several times, so many just want you to stop sending them letters. I have had 1 motivated seller so far, but she held a note that was 75% of the value of the property.

2) As a corollary to #1, think very carefully in choosing your marketing area. If you'd guess it's already been hit several times, it probably has.

3) Don't stay on the phone for 20 minutes with a dead lead. Ask quick screening questions up front such as "Do you have a house to sell?", level of motivation, and expected price. If they say no, or want above market value, I'm going to guess there is a 99% chance that you can buy at wholesale.

4) You are going to start speaking to people with real problems: deaths in the family, money problems, family issues, etc. Try to help them out without lecturing them even if you CAN'T buy their house. Many of the people who preceded me in these mailings seem to have been real jerks based on discussions with some of these homeowners. In short "HELP PEOPLE OUT WHERE YOU CAN"

5) Fielding calls takes a lot of time.

Questions:

1) Do people work these popular lists, or is it better to just say "Already been done too many times" and move on?

2) If there is not motivation, do you bother throwing offers, or do you simply move on rather than insult the homeowner? How do the experienced folks deal with this?

3) Do you find that letting folks screen themselves through voicemail is better than answering each call, or worse? I am starting to think that Michael Q. is on to something with his long winded screening phone call. Seems like a good idea to eliminate the tire kickers.

4) Any general advice would be very appreciated.

I hope that this is useful.

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John Chapman
  • Real Estate Investor
  • Alexandria, VA
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John Chapman
  • Real Estate Investor
  • Alexandria, VA
Replied Oct 1 2014, 12:12

Sorry to bring back up an old post, but great information in here guys! 

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Tasha Mckoy
  • Real Estate Agent
  • Temple Hills, MD
9
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Tasha Mckoy
  • Real Estate Agent
  • Temple Hills, MD
Replied Nov 13 2014, 13:59

@Riley F. Wow...that's a great campaign.  How did you assemble your addresses?

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Tony Johnson
  • Professional
  • Houston, TX
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Tony Johnson
  • Professional
  • Houston, TX
Replied Nov 18 2014, 09:36

Great stuff here guys. I've mailed about 400 so far and the ticked off people are a nuissance. Not to mention if you do bandit signs as well. The call center idea sounds great @Phil B. 

@Michael Quarles I've been looking in the mailbox for my Yellow Letter samples for 2 weeks! :) Do you still do free mailers? I might need to outsource. Great content on your mailing mix as well

@Riley F. Any updates from your campaign?

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Riley F.
  • New York City, NY
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Riley F.
  • New York City, NY
Replied Nov 18 2014, 10:20

Hello and sorry for the delay.

The information came from www.listsource.com regarding absentee owners.

I have since pulled a large list and re-started my campaign, and am 2/5 of the way through my first mailing to the new list. I am going to be making some changes to the copy that gets sent - will keep everyone apprised. 

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Tony Johnson
  • Professional
  • Houston, TX
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Tony Johnson
  • Professional
  • Houston, TX
Replied Nov 18 2014, 14:46

@Riley F. What mix are you using in your mailing? (Yellow letter, PC, zip, etc.)

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Riley F.
  • New York City, NY
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Riley F.
  • New York City, NY
Replied Nov 20 2014, 07:25

I am not sure yet. I'm starting to think that the media doesn't matter as much as the message, though I don't have enough stats to prove that yet.

I am going to try a post card with a different message from the "I WANT TO $BUY$ YOUR HOUSE CA$H MONEY, BABY".

Will probably try something to the effect of "Are you sick of evictions, repairs, and vacancy? etc. " 

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Zoran M.
  • Real Estate Investor
  • Cleveland, OH
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Zoran M.
  • Real Estate Investor
  • Cleveland, OH
Replied Sep 30 2015, 10:34

Great info here! 

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Cory Schwalbe
  • Wholesaler
  • Minneapolis, MN
5
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Cory Schwalbe
  • Wholesaler
  • Minneapolis, MN
Replied Sep 30 2015, 11:31

Awesome information!

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Jeff Fairchild
  • Portland, OR
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Jeff Fairchild
  • Portland, OR
Replied Jan 7 2016, 00:00
Originally posted by @Michael Quarles:

I would have put the ZipLetters in front of both of the PCs and I would have sent a different PC and on the colored PC I would have put something on the back.  however sending them is better than not sending them. I would send YellowLetters, ZipLetters, Large Text Postcard, Large Pictorial PC with text on one side and Typed Letter.

Can you explain why that is the best order in which to send out the mailings?

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Craig Kleffman
  • Reseda, CA
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Craig Kleffman
  • Reseda, CA
Replied Aug 27 2016, 19:34

@Riley F. so where are you some eight months after the last post to this thread?  

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Steve Bracero
  • Real Estate Agent
  • Westboro, MA
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Steve Bracero
  • Real Estate Agent
  • Westboro, MA
Replied Aug 28 2016, 04:57

that would be interesting to see! This thread was very helpful. I began my first direct mail campaign and will be sending out round 2 in about 18 days.

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Riley F.
  • New York City, NY
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Riley F.
  • New York City, NY
Replied Sep 1 2016, 07:54

@Craig Kleffman - I'd say I learned a few things, and a had a couple of successful deals out of these mailings. 2 to be exact, which ended up with a positive ROI. I'm not really mailing anymore, because I'm too busy with work to handle the call volume and follow up in a way that I think it should be handled.

My takeaways aren't going to be news to anyone who reads the wholesaling forums, but I'll summarize them anyway:

  1. Wholesaling is a volume game - get a large quantity of letters out there with quality copy and you will get calls
  2. What you do with the calls is just as important as getting the phone ringing
  3. Wholesaling is a lot of work, this is NOT passive income
  4. I think the reason people say you need repeat mailings is because it appears that way, in reality though, I think people get your letter and hold on to it, and may call you 6 months down the road from a piece you sent long ago. If they're not distressed or selling when they receive your piece, they aren't going to call you.
  5. There are deals to be had with just about any list, but fertile lists will yield more results than infertile or overworked lists (read absentee). *duh*
  6. I think yellow letters work FAR better than post cards for generating call volume. I'm not sure about close volume, but that's been my experience. 

Hope this helps. 

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Matt J.
  • Investor
  • Boston, MA
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Matt J.
  • Investor
  • Boston, MA
Replied Sep 1 2016, 10:12

Any suggestions for wording on a wholesale solicitation letter? Anybody willing to share an example that's worked well for them in their market?