Started DM Campaign

13 Replies

I've liked reading other threads posted by people getting started with Direct Mail so I figured others must enjoy it also. I started initially about 4 months ago with the plan to buy rentals and start building passive income. However, after educating myself more on BP I realized that buying off the MLS in California (or anywhere really) doesn't work for that and after even more reading I decided I didn't want to start with out of state investing. This lead me down the the road of marketing like a wholesaler to find deals.

My goal is not to start with wholesaling any deals i'm able to find, I would prefer to wholetale first, rehab 2nd, then wholesale last if necessary.  I would like to buy sub to or owner financing but I can work some cash deals also.  Initial goal is to buy and sell, mid to long term goal is to buy and keep for long term retirement.

My first 1400 postcards went out on Friday of last week via yellow letters with @Michael Quarles help with refining my list.  I'm in way over my head but i'm not scared, fastest way to learn is to get going and I've taken much bigger risks in my life and i'm still here.  No idea how many phone calls I will get, I'll try to keep this thread updated.  I plan to double my marketing after the first deal assuming I need to in order to get the volume of deals i'm aiming for.

Thx for taking action

Realize there is a rule of 7 touches to a list

After you buy the list, 7 mailings usually gets you the best results

Good luck! Thanks for posting and keep us updated. I want to do the same thing to find some off-market deals to keep. Please keep us updated with your progress.

@Lee S.   Congrats Lee!  You made a great investment!  Excited to hear your stories of success!  

Originally posted by @Brian Gibbons :

Thx for taking action

Realize there is a rule of 7 touches to a list

After you buy the list, 7 mailings usually gets you the best results

 thanks Brian and everyone else.  Yes, i'm committed for the long run and have picked a budget that I can continue indefinitely.  I have full confidence it will pay off.  Brian, you have also convinced me that getting my RE license is the way to go, I'm planning to start that process in about a month once I get some other business out of the way.

Forgot to add that the reason I want to get RE license is for better access to everything MLS but also I like the type of business that Brian does with lease options. I don't want to be throwing leads away, I want to have as many options as possible to get a deal done.

@Lee S.

I am proud of you.  

See http://www.biggerpockets.com/forums/12/topics/1801...

for negotiating terms deals. 40 long posts.

What I like about terms deals on pretty houses is you only have a 

-Pretty House Seller that has no or equity, gets a terms offer quickly for full price, gets PITI covered

-Buyer that needs time to get a mortgage, gets the home now, gets coaching on getting a good mortgage

-Compared to Wholesaling: No Picky Cash Buyers, No Builders, No Contracting Knowledge Needed,  No LOW 65% less costs offers

-Less Competition than dealing with Only Wholesaling

-If you are licensed, you can differentiate yourself as a problem solver and get referrals from other agents, many states like CA, OH and FL require RE licenses

PM me if I can help.

Best wishes,

Brian

Originally posted by @Brian Gibbons :

@Lee S.

I am proud of you.  

See http://www.biggerpockets.com/forums/12/topics/1801...

for negotiating terms deals. 40 long posts.

What I like about terms deals on pretty houses is you only have a 

-Pretty House Seller that has no or equity, gets a terms offer quickly for full price, gets PITI covered

-Buyer that needs time to get a mortgage, gets the home now, gets coaching on getting a good mortgage

-Compared to Wholesaling: No Picky Cash Buyers, No Builders, No Contracting Knowledge Needed,  No LOW 65% less costs offers

-Less Competition than dealing with Only Wholesaling

-If you are licensed, you can differentiate yourself as a problem solver and get referrals from other agents, many states like CA, OH and FL require RE licenses

PM me if I can help.

Best wishes,

Brian

 This is exactly why i'm following your advice, it makes sense.  I sent you a PM a few minutes ago with a question on a slightly different subject.  I'll read through that link above asap.  Thanks.

ok, 4 calls so far today and spoke with 1 seller.  I'm letting everything go to voice mail.  I know there is a big debate on this but I feel this works better for me at this time since I won't be able to answer all the calls and I can treat everyone the same.

Going with what Michael Quarles suggests and letting them give me an offer but this lady wouldn't give a number, I get the feeling she is looking to win the lottery.  It's good practice though, I'll get some comps and go from there.  Anyone have any tricks to get her to spit out a number?  

Received another VM while writing this.

Statistics from DM campaign so far:

Sent out ~1410 post cards

received approximately 25-30 calls, 21 left voice mails and I returned every call.

This works out to 1.4% I believe.   No deals made, had one lead that was ok and met seller at house and made an offer but so far no luck.  I do not think this deal is dead however. I know the seller has no options so I will be following up.  I have one owner willing to do partial owner finance and 3 others that are open to creative financing but I did not propose anything specific to them.  I think lease option would be the way to go, see below.

What I have learned so far:

Spread the marketing out, i'm going to do 25% a week instead of all at once.  It makes no sense to be bombarded with calls for 3 days to the point that it's hard to do a good job with each one, then have almost zero the rest of the month.  All messages were received in first week, none so far this week.  I'm guessing I may get another couple of calls in the next few weeks.

I'm good at building rapport with people though I know I have a long ways to go on what I should say and when.  I think my experience talking with thousands of patients over the years makes talking to sellers very easy. I would give myself a solid B+ taking my lack of experience into acct.  I can't do the used car salesman act, it just isn't me.  I simply have a conversation and look for their pain point and ask questions to see what strategy I could use to solve their problem.  I started out trying to go off a script but after a few calls I already had down what info I needed and what questions to ask, everything was conversational after those few calls.

The last thing I learned is that I need to get licensed.  @Brian Gibbons has convinced me of this but after taking all these calls I think it's unwise to not be licensed for more than just legal reasons.  Being licensed in California doesn't stop me from buying/selling or wholesaling as a principle, but it opens up lease options and worst case just listing the house for the seller.  I think I could have done a few deals had I had all these tools available to me.  After my first couple of weeks i'm very confident once I have my license that I will do very well with the marketing.  The only real fear I have is not understanding how to handle the actual transactions (contracts/forms, title company etc), I think getting my license will really help with this.

That being said, I've decided to put the marketing on hold long enough to get my RE license, I think I can do it in 1-2 months? I was working with a friend who was a Realtor to get me comps but that didn't last long. She didn't realize how many calls I would get but also I can't stand working with Naysayers that have never had 1 thought outside the box their entire life or ever taken one risk. I'll let her continue on struggling as an RE agent on her own. If it isn't buying off the MLS and getting a loan through a bank, it can't possibly work in her mind. Apparently it also needs to be the prettiest house in the county that she would be willing to live in or else there can't possibly be a way to make money on it. Don't you love people like that?

One last thing, people are always asking how to find buyers or Private lenders.  Out of these 21 calls I found 1 buyer and 1 person that is interested in being an equity partner.  Planning to meet him for lunch and see what we can work out.  I also met a Realtor that called me for her clients and she understood what I was doing and looking for. I told her to call me if she see's anything that meets my parameters, I think this could lead to the occasional deal.

@lee s.

Sounds like you are getting some traction with the mailers.   If you want to check out samples of postcards I have sent out I uploaded a couple in the BP fileplace.

Frank

Originally posted by @Lee S. :

That being said, I've decided to put the marketing on hold long enough to get my RE license, I think I can do it in 1-2 months?

Considering that your success rate goes up with every touch, seems a shame to stop your marketing machine now and lose the momentum. Can't you work on your license concurrently? I'm considering the on demand course from Kaplan. 135 hours but you can work on it whenever you want.

Originally posted by @Graham K. :
Originally posted by @Lee S.:

That being said, I've decided to put the marketing on hold long enough to get my RE license, I think I can do it in 1-2 months?

Considering that your success rate goes up with every touch, seems a shame to stop your marketing machine now and lose the momentum. Can't you work on your license concurrently? I'm considering the on demand course from Kaplan. 135 hours but you can work on it whenever you want.

 I looked at the pro's and con's of continuing while I get my license and stopping temporarily.  The only thing that is a pro for continuing is the momentum you mention.  However, there are numerous things that make stopping temporarily make sense so I've decided to do that.  I've got a couple other businesses I run and it's the busiest time of the year for one of them (not associated with taxes).  I would say I wasn't really prepared to get going but I did it anyways because I wanted to take that first step which I think is the hardest part.  That fear is gone now and I don't want to throw away any more leads.  Once I start up again I don't plan to ever stop so a short break isn't a big deal in the bigger picture.  

Congrats on stepping out and taking action! You will never gain results by doing nothing. I am BIG on direct mail campaigns. They truly make a difference and produce results. Keep it up. Once you get more used to it, you'll begin to develop your own strategies and ways to make it more and more successful. 

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