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Results From My First Mailing
Alright, I'm an investor that's located in Maryland and I just sent out my first 500 mailings to absentee owners in my county. I sent the letters out on Friday the 9th and so far I've received about 4 calls back. I also put up a few bandit signs last night, still got a lot to go. But the calls that I've received we're all from curious people and tire kickers unfortunately. Was this mailing just a dud? I'm mailing to a list of 1200 Absentee owners and once again I just sent out 500. I'm on the verge of tears (Kidding but I really want to see some results). I plan on sending out another 500 on the 23rd. Could anyone give me any advice?
Thank You.
What type of information are you sending out? Direct mailers should only before enough info to pique their interest to call you. If you spill the beans you are only confusing them. Most people read at a 8th grade education.
Originally posted by @John Quebedeaux:
What type of information are you sending out? Direct mailers should only before enough info to pique their interest to call you. If you spill the beans you are only confusing them. Most people read at a 8th grade education.
I just pretty much tell them I'd like to buy the property, I pay all cash, I close quickly and that they don't have to fix the house up or anything like that. Then I tell them I'm a nice guy and they should give me a call if their interested in selling.
you tell them you're a nice guy? How do you state that in your letter?
you tell them you're a nice guy? How do you state that in your letter?
Originally posted by @Vinny Gaines:
you tell them you're a nice guy? How do you state that in your letter?
The letter pretty much goes like this
Dear ((Whatever that persons name is))
My name is William Rose and I'd like to purchase your property on ((Whatever their address is))
I will buy your house "As IS" in ANY condition without ANY need for you to fix it up.
I understand that your time is VERY valuable so I can also close quickly. I pay CA$H by the way.
If you have ANY questions please feel free to contact me at ((My phone number)) any time so we can get right down to business.
If your thinking of holding on to the house that's fine, but I'll be buying VERY SOON.
Please don't hesitate to give me a call, I don't bite. I'm a pretty nice guy I promise
William Rose
((My phone number))
Hi @William Rose ,
I'm about to start my Direct Mailing Campaign as well. After talking with other investors, most would say to just be consist in your campaign. Mail out other little pieces of mail as well like post cards just to show your still interested.
I wouldn't mention "I'm a nice guy" in my letter. It's kind of give of a negative approach
Best of luck!
1% response isn't unusual. Sometimes I vary from 0-10%. It also could be that they just haven't called yet. I've got calls three years later from ads I put out. This happens quite often actually.
Also, I would reword that nice guy bit. Maybe take it out all together with a more solid call to action.
On a side note, I think it's funny when people call me to tell me their house isn't for sale. I understand that people really are guarded about their property, but I always think "do you call the auto mechanic or pizza delivery place and tell them you don't want any when they send you an ad?"
Originally posted by @Account Closed:
1% response isn't unusual. Sometimes I vary from 0-10%. It also could be that they just haven't called yet. I've got calls three years later from ads I put out. This happens quite often actually.
Also, I would reword that nice guy bit. Maybe take it out all together with a more solid call to action.
On a side note, I think it's funny when people call me to tell me their house isn't for sale. I understand that people really are guarded about their property, but I always think "do you call the auto mechanic or pizza delivery place and tell them you don't want any when they send you an ad?"
Alright, I'll definitely word it differently. How does the rest of the letter sound?
Too many "I's"
Not enough "You's"
What is BENEFIT to seller?
Originally posted by @Joseph Ball:
Too many "I's"
Not enough "You's"
What is BENEFIT to seller?
Close quickly, Pay all cash, No need to fix anything up, etc. Great advice though, I think i'll rephrase my letter to include more "You's"
@William Rose:
My response rate for mailers here in the D.C. area is far less than 1%. Absantee owners are a prime target for real estate investors so you can bet you're not the only one farming them.
If this were as easy as putting out a couple thousand mailers to get one deal then everyone would do it. You might have a little better luck up in the Baltimore area but in most areas of D.C. region I would expect to put out between 5,000-10,000 per deal captured. So, that is a cost of about $2,200 to $4,500 for mailers for me.
-
Real Estate Agent
- Snow Goose Homes LLC
Hi William,
I am new to this world myself and have been a lurker on the board for a while- this is my first post. :) I have worked in copy editing though so I'd like to suggest a few changes to your letter. These are simply suggestions and off the cuff edits. Please feel free to use it if you like, and obviously as this is somewhat unsolicited, feel free to ignore as well. I copy and pasted your letter below and my version is the bits that start with ***.
Dear ((Whatever that persons name is))
My name is William Rose and I'd like to purchase your property on ((Whatever their address is))
***Thank you for allowing me to introduce myself, my name is William Rose and I buy real estate. Have you thought about cashing in on the value of your property on (address)? Whether you've thought about it in the past, or this is a new thought, I can help you cash in very quickly!
I will buy your house "As IS" in ANY condition without ANY need for you to fix it up.
I understand that your time is VERY valuable so I can also close quickly. I pay CA$H by the way.
*** You're time is VERY valuable. Having this home sit empty is a weight, and the idea of fixing it up and getting it sold is quite the undertaking! You need a buyer who will take your home in ANY condition, "as is" so to speak. You also need a buyer who can pay cash- therefore filling your pockets and getting this deal done quickly. I buy homes in as is condition, and in cash.
If you have ANY questions please feel free to contact me at ((My phone number)) any time so we can get right down to business.
If your thinking of holding on to the house that's fine, but I'll be buying VERY SOON.
Please don't hesitate to give me a call, I don't bite. I'm a pretty nice guy I promise
*** I'm sure that you have questions about how to get started. I am here to help and guide you through the process. I'm happy to answer ANY questions you might have. You can call me now at (###). After you call you will be assured that you're dealing with someone who genuinely wants to help you unlock your property's potential in the quickest and easiest way for you. Let's get started!
William Rose
I've received about 10-15 calls in all. I actually only got one angry person. The rest simply weren't motivated enough..They all wanted a close offer. I have one lady left out of those who called me. She left me a message, saying that she's more than willing to sell the property for the right price. I call back, she's not home. We keep going back and forth. Eventually I'll get in contact with her but I don't think she's motivated enough. She has a tenant in the house. Currently I'm working on my second mailing of 500 to absentee owners. Hopefully I get some deals out of this one. Consistency is key right?
I just kicked off my first direct marketing campaign last week and have had similar results as you. I'm mailing 250/week (1000 monthly) and from my first batch I've received three calls (~1% call back rate). They were landlords that owned the properties outright but had no motivation to sell. The properties needed little or no repairs so they were expecting an offer near market value. It was good experience talking to the sellers and pulling comps but I'm hoping to find someone motivated within the next few months.
@William Rose It seems like you are on the right track. The key is consistency and continuing with the same list monthly for 3-6 months. That is the first part, then once you do get a call, follow up is really important. Those that you say aren't motivated, follow up. You never know when they will be motivated and you want the first chance to buy. Keep it up!!
Originally posted by @Deanna Daily:
@William Rose It seems like you are on the right track. The key is consistency and continuing with the same list monthly for 3-6 months. That is the first part, then once you do get a call, follow up is really important. Those that you say aren't motivated, follow up. You never know when they will be motivated and you want the first chance to buy. Keep it up!!
See the thing that I question is whether I should continue sending multiple letters to the same people or market to other potential motivated sellers. My natural reaction to sending multiple letters to the same people is "Well they didn't call me the first time, If I keep marketing to them why is that going to make them want to sell.....Wouldn't a motivated person call immediately once they got the first letter"?
Just keep going. You will get motivation eventually. 1200 is even pretty small. Do you have different numbers for your letters and your bandits? If not I would use a service like vumber or something to separate so you know where the calls are coming from.
This is not a get rich quick business, not even wholesaling. You have to keep at it and your efforts will start building on each other!
I think I remember hearing in the Michael Quarles podcast he spends upwards of $40,000 a year in advertising/yellow letters. So he probably has a dud or ... ten? I think you just have too small a sample size to go off of.
Originally posted by @John Horner:
Just keep going. You will get motivation eventually. 1200 is even pretty small. Do you have different numbers for your letters and your bandits? If not I would use a service like vumber or something to separate so you know where the calls are coming from.
This is not a get rich quick business, not even wholesaling. You have to keep at it and your efforts will start building on each other!
Yeah that was my approach. How many letters do you think I should send out at once at do you think that would be better opposed to my spread out effort of 500 every 2 weeks?
I use the same phone number for both but for my bandit signs I have a google voice number that leads to my actual phone number.
Originally posted by @Patrick Jacques:
I think I remember hearing in the Michael Quarles podcast he spends upwards of $40,000 a year in advertising/yellow letters. So he probably has a dud or ... ten? I think you just have too small a sample size to go off of.
What should a beginning investor start out with?
An amount that won't break you. An amount that won't devastate you if you don't get a single response.
I was talking with my mom about becoming an actual Real Estate agent. After doing some research I started to question it though when I saw that costs can be around two grand when everything is said and done. For me that's a bit much, however It's not fun seeing these dead leads fall down the drain. Working on the second batch of 500 which we be going out on the 30th. Also looking into building an online presence and using SEO to outdo everyone else in my area. If anyone else has any recommendations please feel free.
I can't necessarily speak from experience, but from a marketing perspective, I would suggest a couple things:
(1) Remain consistent and develop a pipeline for each scenario. Pipeline for those who do not respond (send a second letter, maybe a third letter); pipeline for those who respond (offer a follow-up letter after a period of time if it doesn't work)l pipeline for those who respond and are interested
(2) Use a letterhead, if possible, to give it a professional feel and connection
(3) Place yourself in the shoes of the customer and ask yourself what the customer would want to know. Are you providing enough features, advantages, and benefits to the potential client.
Again, these are just suggestions, however, maybe some of this advice may help out some. Good luck on your second batch.
Originally posted by @Account Closed:
1% response isn't unusual. Sometimes I vary from 0-10%. It also could be that they just haven't called yet. I've got calls three years later from ads I put out. This happens quite often actually.
Also, I would reword that nice guy bit. Maybe take it out all together with a more solid call to action.
On a side note, I think it's funny when people call me to tell me their house isn't for sale. I understand that people really are guarded about their property, but I always think "do you call the auto mechanic or pizza delivery place and tell them you don't want any when they send you an ad?"
Agreed. You are assumed to be a nice guy until proven otherwise. You don't want to come off as sketch, but legitimate.