I'm starting my first direct mail campaign to hopefully pick up some properties in a small geographic area with about 800 homes. I want to start a monthly campaign on these properties to stay top of mind and hopefully pick some up for flips or rentals.
My partner and I have about $200-250 that we can spend per month in this area are would like to set up a campaign that will work long term. How would you spend this money to pick up maybe 1 or 2 of these properties a year?
I'm also combining my list with walking for dollars so that I can maybe tailor my campaign to what the house looks like. I don't need a quick buck with these my hope is that over time the owners in this area come to me when they are ready to sell.
It really depends on your market and every market is different..
I've spent $2k on direct mail in the bay area and have gotten no deals from them.
Then I've spend $1k in direct mail in memphis and I've gotten a deal.
I would just say try it and see what happens for your market. If it works spend more on it.
I suggest you come up with a post card and letter rotation that will spread your budget out over time but keep you in front of them. Maybe a postcard to half, letter to a third, post card to next half, letter to next third, new post card to first half etc.
Max your budget and rotate message and method each month.
With a budget of 200-300 per month. I would do the mail yourself. It's not going to be the most fun thing you've done in your life. But you can get 2x as much mail out. If you want some help on how to do it just drop me a PM. I would have the goal of outsourcing it once you've got some traction but things like list fees and shipping can destroy that budget.
@Ryan Dossey makes sense.
We could spend more, but at this point we are just looking for a few deals a year so mailing on my own might make some sense.
@Anthony Angotti Yeah with that volume it won't take someone any time at all.
@Anthony Angotti so my answer is going to be a little different. For my direct mail campaigns I put together a handwritten letter than photocopy. I then write in the name and address of property I am looking to purchase. The envelope is hand written to the person I am mailing. Yes this is very tedious and time consuming....but I have had results that far surpass any paid campaign. I mailed 191 letters my first campaign (about 12 hours of labor). I have since purchased 3 buildings, 26 parcels of land, and one referral commission. I also had over 15 calls/emails of people also looking to sell properties that didn't fit my criteria. Getting someone to open junk mail is hard, everyone will open a handwritten letter, especially from a local address.
@Anthony Angotti direct mail is a huge part of my marketing. We target an area of 6000 properties and send out in weekly batches of 2000. Each property receives mail every 3 weeks. It's very important to stay top of mind for direct mail because you're looking to catch someone when they are ready or thinking about it. We also call every week to these properties. It takes time to build up, but it definitely pays off if you are consistent. The key is consistency.
What kinda list were you targeting for your 191 letters in your first campaign?
@Ray Lai my list was filtered to multi family owners in a couple specific zip codes that had owned for over seven years or more years.
I have done a very similar mailing with same contents/criteria but used a paid mailer and the results were less than 1% response with 0 deals. The difference was letter was typed handwritten font and had a metered postal mark.
I agree with you Collin. I've had response rates around 4-5% with hand addressed letters.
I quit sending for a while, but I'm thinking about starting back up this winter.
That's a very similar list to what I'm sending then.
Didn't think of filtering for 7 or more years, but that probably makes more sense.
@Ryan Dossey I would love to pick your brain on the key to keeping hand written direct mail costs down. I assume a simple short message on legal pad yellow paper in an envelope would do it, but what about postage? Also the mailing list...list source or similar? MLS based list filtered for various markers of equity? Driving for dollars self made list?
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