Direct Mail Campaign

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I have a few ideas for you. Target out of town owners, many of them will be parents who dont wish to be landlords, they just owned a house while thier kid was in school. 

Also, send a yellow letter, if you dont know what that is then ask me. The yellow letter is so simple that it isnt threatening to anyone.  You will get a 30% + reply rate,  If you are answering your own phones, dont dare send out more than 50 at a time

Lastly, hit your list hard at the end of the semester (now) that is when landlords will be burned out as they see what the kids did to their apartments. 

Lastly, if you can, speak with local code enforcement officers and see if they can turn you onto landlords who have violations.   Those landlords will, in many cases be people who arent making any money on their rentals.

Go get em

Josh

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Hi Account Closed would tell you. Personally, in my market (Indianapolis IN) yellow letters are all used up. I have only been doing this for about a year now and we do not use YL anymore. Honestly, we tried everything and now we use a professionally typed letter. We change things up from time to time but this is what works. I go for absentee owners too, but in my last 15 wholesale deals not one single person has been an out of state owner. We did one flip where the person was out of state. Maybe we just aren't that lucky or something but for our business and market, absentee owners who live in the state (IN) are our best sellers. 

I target specific zip codes, and I go for at least 90% or more equity. There is mixed ideas about not mailing to trusts, and I am just not so sure. I think you should swim against the tide. I mean if everyone in your market is doing yellow letters do something different. If your competitors are not going after trust's you may try to mail to them. I think you really cannot go wrong with absentee in general. Indiana and Ohio I suspect are not that different. Our states have pretty conservative people. In my opinion, and a handwritten letter does not make someone feel safe about selling their home to a "person" but if you are a company then maybe it looks better. What would you do if you were in their shoes? Would you sell to a person who wrote (printed) something to make it look handwritten? Or would you sell your house to a company who presented their name of the company along with a logo and/or website so they could verify you really are a legal company?

I hope this gives you more to think about. In the end, you really have to just start and adapt things as you go. Feel free to message me and I will even walk you through when purchasing your list. I just love to help people! Really!

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Do keep in mind Josh is talking about a target market that is more narrow than what most people typically mail to.

Ok let me clarify a bit.  The yellow letter has been around for about a decade. The creator of the yellow letter cashed out and moved to Alabama years ago. 

I have split tested (tested one against another to the same list to measure results) just about every form of a direct mail letter from Robyn Thompson's Horsey letter, to Kathy Kennebrook's sub market trageting, to even Ted Thomas lumpy mail.  NOTHING gets the reply that a stupid yellow letter gets. It looks sloppy and it goes against what everyone expects, but I am still tracking a 30-50% response rate no matter what the target is over time. I have had people call me on yellow letters that I sent two + years ago. 

There is a deal of psychology here.  The letter appears to be hand written (only by feeling for an impression can you tell) It comes in looking like an invitation, pretty much everyone opens it and that is half of the battle. Most direct mail gets tossed without ever been opened.  I subit that each of us does that with our mail before it ever enters the house.

The only time yellow letters will not work is when some idiot guru enters town and tells his students to mail out 5000 at a time.  They typically screw up the letter by adding something to it which lessens its response rate.  You can kill your rate with a company logo or a business card.  I bbelieve that the reason for this is that people are intimidated by anything that looks slick.  This is just my opinion here, but the stupid looking letter pummels everything that I have ever seen.

I have a team of 5 people and we couldnt begin to field 5000 letters per month.  We couldnt field 500 per month.  We might send out 50 per month.

I dont own the company, I dont care what you use.  I can however tell you nothing works better in direct mail to single family house sellers. 

To your success

Josh  

I just picked one up today from parents that bought a house for their daughter while she was in school. While we didn't target a "college town", it worked. Like @Josh Caldwell

 said, Yellow Letters work GREAT but this came from a postcard. I like to use a postcard on a list first to get the folks who are going to call and want off the list because they are less expensive. Then, follow-up with a yellow letter 30 days later to your scrubbed list and it will cost you a little less since the list is smaller. Hope this helps.

@Account Closed , sure. You'll want to do a quick Google search for the median home value in your market, right that down. You'll need it later on. Go to Listsource.com and without getting too in depth select your area, 1-3 bedrooms, 30-100% equity, last market sales  range 1990 to four years ago (2011)... There are a few more steps. Heading to a meeting now. If you send me a private message I can email you what we use.

Account Closed

Hello liz, Abdullah from Michigan here. I was wondering what did you end up doing with your mail campaign? I am working on my first campaign and I want to know how it worked for you. Did you hand write the letters or send typed postcards/letters? If so, what website did you use to send your list out. Thanks!

Account Closed I would send out a minimum of 500 per month.  You should easily be able to handle the responses from 500 letters.  I know people on here that send out 3500 per month and they do just fine with handling the calls.  I believe the national average response rate for a yellow letter is around 2-3%.  At least that is what I have read on BP.  I have never heard of a 30-50% response rate on a yellow letter.  

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