Memphis, TN · Member since 2017 · 41 posts · 11 votes
I there a better and more cost efficient way than direct mail to get in contact with motivated sellers? Direct mail is extremely expensive in contrast to the amount of leads that ACTUALLY turn out to be profitable deals. In this internet age that we live in, there has got to be a better way of going about this. Any and all suggestions are appreciated!
Investor · Alvin, TX · Member since 2014 · 87 posts · 124 votes
9y
I'm on board with Lakeem, but I think it also depends on your personality.
Mail works, it's just taking more and more of it to yield the same results and it doesn't look like that trend is going to change anytime soon with so many people jumping into real estate and being told to mail, mail, mail. BUT, mail is passive so it's easier to scale.
Cold calling can produce just as many deals, but it's obviously not passive. And if you're very targeted in what you skip trace and prioritize your efforts, you can do fewer deals, but make as much money because they'll be more profitable. I personally opt to be as lean as possible so I don't do as many deals, but my they tend to have pretty hefty margins so I'm happy. At this point I spend more time researching properties and the owners/heirs than I do actually calling them.
A LOT of different ways to implement this into your strategy or to make it your sole strategy for finding deals.
I've never tried PPC, but the guys I know in the Houston market who use it are averaging around $5k-$6k per which hasn't exactly motivated me to try it.
I don't personally know any investors who have had real success you using FB ads, but I think someone will eventually crack the code on that and make it a reliable lead source.
If you look around the forums, all the large players agree that direct mail is still the best, scalable solution for a large funnel.
Seems like you want someone to sell you a 'cheap' internet solution where magical motivated sellers are constantly trying to offload properties to you.
Other people have noted, internet marketing is actually more difficult to reach motivated sellers. Why? Because they will check out all the other leads in your area that do internet marketing as well and unless you can close right away, they will shop around lots. Getting a buyer on the phone and knowing how to close a deal efficiently is still very important.
Investor · Alvin, TX · Member since 2014 · 87 posts · 124 votes
9y
I'm on board with Lakeem, but I think it also depends on your personality.
Mail works, it's just taking more and more of it to yield the same results and it doesn't look like that trend is going to change anytime soon with so many people jumping into real estate and being told to mail, mail, mail. BUT, mail is passive so it's easier to scale.
Cold calling can produce just as many deals, but it's obviously not passive. And if you're very targeted in what you skip trace and prioritize your efforts, you can do fewer deals, but make as much money because they'll be more profitable. I personally opt to be as lean as possible so I don't do as many deals, but my they tend to have pretty hefty margins so I'm happy. At this point I spend more time researching properties and the owners/heirs than I do actually calling them.
A LOT of different ways to implement this into your strategy or to make it your sole strategy for finding deals.
I've never tried PPC, but the guys I know in the Houston market who use it are averaging around $5k-$6k per which hasn't exactly motivated me to try it.
I don't personally know any investors who have had real success you using FB ads, but I think someone will eventually crack the code on that and make it a reliable lead source.
Specialist · Clementon, NJ · Member since 2016 · 67 posts · 18 votes
9y
What I found to work for me....get the 500 pack of envelopes from Walmart $6. Print out copies of a standard letter where you can put the address of the property you’re interested in. (Hello _____, I am interested in purchasing your property @ address ________. Give me a call if you are interested, “phone number”). Of course be more detailed. As far as copies, staples. Or if you have someone close to you that is allowed to print at work use them. When you find the sellers actual address, send them a letter. Your highest bill will be the stamps which are $19.60 for 40 of them.