First Mailer

22 Replies

Hey All

just sent my first mailers out trying to wholesale:

Total addresses 700

Criteria

3 to 5 bed

1000 to 1800 square feet

built after 1960

Owned 2007 or before

50% or more Equity

I decided to mail postcards as it is cost effective and I have had success using direct mail when marketing for mortgages.  My goal is to find some properties to wholesale as well as flip. Ill keep you updated.

Tyler

Hi Tyler -

I think that is a perfect number to start with, however I have one question. Are those absentee owners?  What is the "motivation".

Sharon

Hi Sharon

thats correct they are absentee owners. And thanks for your reply hopefully the criteria is ok.

Tyler

@Tyler Thrush  

Congrats on the first mail out. One question, how did you compile your list? Was it a list provider, did you "drive for dollars", etc?? Just curious.

it was a list from a list company that I used through a title company

Hello

so the mailer went out on the 12th and I have received a total of 4 calls.

1. asked me to remove him from the list.

2. Wouldnt give me an address but spoke with them for about 20 minutes and they said they would call back.  I dont think the motivation is there.

3 and 4. Hang ups

Its been awhile since I have done any marketing at all and this was my first marketing piece for wholesaling.  Overall I didnt have any expectaions but just wanted to get the ball rolling and get used to talking to people about their home and try to refine my script while handling objections.  I didnt get enough calls to do much practicing but hopefully the next mailer produces results.  I plan on using the same list and marketing piece mailed 1 month after the original piece went out and am considering us PA2live to handle the inbound calls.

Any advice or criticism welcome!

Tyler

i just sent out the second set of mailers with the same list however this time I used a script from the company I ordered my mailers from and hired a company to answer the phone and ask the questions on the script. 

6 calls total

3 hangups

1 removed from list

2 left information but I am unable to get a hold of them.

I have budgeted everything for a year before I committed so heres to something happening soon! any feedback would be greatly appreciated.

Just got confirmation that my third mailer went out and I got zero calls!!!!! any suggestions at this point would be appreciated.  I am going to keep my commitment of mailing for one year to the same list but it seems odd that I didnt get one call.

@Sharon Vornholt any suggestions?

Thanks for the updates, Tyler. I'm curious to see where this goes!

@Tyler Thrush

I hope you get some traction.  I use propertyradar.com to compile my data and then I push it to expresscopy.com.  My mailers have been 250-500 pieces each time.  I haven't been consistent with hitting the same addresses.  My response rate has been 2-3%.  Some of my sample mailers are saved in the BP fileplace if you want to see what I have created.  I'm shooting from the hip. 

Frank

Well I sent my fourth mailer out and they hit May 6-9 judging by the returned mail I received. This is the second month in a row I have had zero calls from my mailing which blows me away that I haven't go at least one call from someone telling me to remove me from their list.  Since this was my fourth mailing and I have had horrendous results I think I am going to start over with new leads... any suggestions would be GREATLY appreciated.

Tyler - just curious here, but have you tried yellow letters? I'm a total noob, so do your own research, but from what I'm reading (about to launch my own marketing campaign), the responses on yellow letters seem to be more favorable than post cards. Many also seem to recommend alternating between yellow letters and postcards. Someone else chime in here if I'm off base, again, no real experience here, just lots of reading.

Hi Jon

I haven't tried yellow letters as of yet, I have been going with yellow postcards so far. I have decided to mix it up and try them so Ill let you know how it goes. Thanks!!!

Curious if you've tried alternating the message, or if you are using the same message for each mailer/mailing.  

Cant create motivation, but try and convey a sense of urgency in the message.

Hi Derrick

I just switched the message this last mailer to see if that was my problem but no luck.

I'd try that for about 2 more mailings.  Switch it up each time.  They say it takes about 6-7 touches on avg.  If it doesnt work then move on.  

At least you've been consistent enough to make an impression should the motivation arise.

Good luck.

You're mailing 700 post cards every couple of weeks and trying to compete my guys like me mailing 4-6,000 pieces every week. You better have one unique marketing piece or a seriously niche list. 700 absentee owners are probably not going to work out very well for you. Those people are being HAMMERED by investors and have been for at least 3 years now. The last 12 months have just been ridiculous the amount of mail being sent to that group. My margins are much tighter and I'm buying less houses this year. This reminds me of 2006 all over again.

What area are you targeting?

thanks @Aaron Mazzrillo I Appreciate the feedback. I am sending them out in riverside county and I believe I used the criteria from your Podcast! What then do you suggest as far as a viable strategy for those who can't mail 4000 pieces a month? Thanks again

Originally posted by @Tyler Thrush :

thanks @Aaron Mazzrillo I Appreciate the feedback. I am sending them out in riverside county and I believe I used the criteria from your Podcast! What then do you suggest as far as a viable strategy for those who can't mail 4000 pieces a month? Thanks again

 Food for thought:

Lots of people think the IE is the place to be since the houses are less expensive than OC. Funny thing though, a bad tenant is a bad tenant regardless of where your rental is located. Deferred maintenance still happens. People all over the country still get old at the same rate...except Benjamin Button. Everyone gets into financial trouble now and again, even Donald Trump. So, you live in Dana Point, but you're mailing to Riverside. Why? What makes you think there is any more opportunity here than in your own back yard? You know how many houses I bought in OC in the last 12 months? More than you bought in Riverside. I've got two deals I'm looking at right now, one in Lake Forest and another in San Juan. You can't get those because you aren't even looking for them. Instead, you're trying to buy on the other side of the Santa Ana Mountains.

Hard for you to be an expert on my market especially when I was willing to move out of my water front house in OC and move into a dumpy rental I own out here so I could become the expert on this market. Are you willing to do that? If not, and you aren't mailing on the volume I or other investors out here are mailing, with local return addresses, how do you think you can compete? When sellers in Riverside, San Bernardino, Rialto, Fontana, etc. ask me where I'm located and I tell them just off the 60 freeway, it definitely gives me the 'local' advantage.

We have to do things with intention. We can't just do what we heard on a podcast because it works for someone else. We have to take that information and apply it to our situation and figure out how to make it work for us. Contemplating how we mold what we learn into our way of doing business so that it works for us is one of the keys to success. Then implement and if necessary, improve or modify. The information we can't use, we ignore. When mining for gold, you focus on the gold and wash away the mud. I bet if you get in your car or on your bike, you can find plenty of opportunity in the neighborhoods right around your city and in nearby cities. So, you start making a hit list. I've done more good deals in OC than I have anywhere in the IE. I can just do more consistently out here because I am out here and that is why it works for me. That is what I thought I needed to do to achieve my goals. I don't know what you should be doing or are willing to do to achieve yours.

+1 for the brutal, honest truth outlined by Account Closed above. I would vote for that post twice if I could.

haha I agree @Derek B. I guess this is the benefit of putting yourself out there! It's a good dose of reality and I'll keep plugging away.

I just don't want you to do something, have it not work out, then get frustrated and quit. I don't know you, but that is a very common story. I want you to be aware of what you are up against and the type of people you are competing with. I know three other investors who run similar models as myself;

One lives in Dana Point like yourself, but has an office in Upland. Another lives in Huntington Beach on the weekends, but also has an office in Upland. The last one lives in Huntington Beach, but has an office in Cathedral City. All do lots of mail, but put themselves into their target markets M-F and go 'home' on the weekends. The number of full time investors like myself who suck it up and just live out here are too numerous to count on 10 hands. It really has to be one of the most competitive markets in California, if not the nation. BUT, if you can survive and thrive here, anywhere else should be a cake walk. Certainly a great place to cut your teeth if you have the capital to spend during the 'start up' phase.

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