Wholesale Direct Mail Marketing Letter

17 Replies

Can anybody give me some critiques on this wholesale direct mail marketing letter? Any major pieces I am missing?

I am planning on sending this one to absentee owners and then maybe a different one to a divorce list. Purchasing a list on list source today and want to get mailing!

Dear <<Name>>,

I am looking to purchase a home in the <<Area>> area, and your home at <<123 Main Street>> caught my eye. I am a real estate investor and can purchase your home in As-is condition, for cash and close on your time frame.

Please give me a call at xxx-xxxx, I would love to learn more about your home even if you are not ready to sell quite yet.

Thanks,

Daniel Johnston

Originally posted by @Daniel Johnston :

Can anybody give me some critiques on this wholesale direct mail marketing letter? Any major pieces I am missing?

I am planning on sending this one to absentee owners and then maybe a different one to a divorce list. Purchasing a list on list source today and want to get mailing!

Dear <<Name>>,

I am looking to purchase a home in the <<Area>> area, and your home at <<123 Main Street>> caught my eye. I am a real estate investor and can purchase your home in As-is condition, for cash and close on your time frame.

Please give me a call at xxx-xxxx, I would love to learn more about your home even if you are not ready to sell quite yet.

Thanks,

Daniel Johnston

When you go to an actual appointment with a prospective seller, I think Its imperative to do two things:

  1.  You need to be clear and upfront with the seller that YOU, Daniel Johnston, is NOT the buyer, and real buyer will be an INVESTOR that you have networked with.  
  2.   You also need to convey that the price agreed between you and the seller is probably not going to be the final transaction price, as you don't work for free and the buyer pays your commission. If I were you, I would use this as a selling point, as typically seller pays for commissions, and in this case they aren't doing so. 

That being said, I would change the "I" to "we". When you use the word "We", and if someone asks you, "who is this WE?", you can say its a group of investors.   When you use "I" you are cornering yourself.

Oh I would definitely be up front about the way I get paid and that I am not the end buyer. The more transparency the better But do you think it’s necessary to put all that in the letter or just get the phone call first and then communicate what’s going on?

Originally posted by @Daniel Johnston :

Oh I would definitely be up front about the way I get paid and that I am not the end buyer. The more transparency the better But do you think it’s necessary to put all that in the letter or just get the phone call first and then communicate what’s going on?

I personally think you are fine, but I'd defer it to more experienced Wholesellers. Not my forte. I think the message should be to the point, and your short and succinct letter achieves the purposes. Also a lot of mailing is often tweaked to achieve the desired results. 

@Daniel Johnston

Chinmay made some good points. If you want templates of other letters that are proven to work, I'm happy to send you. Sounds like you are about to get started with your first DM campaign? I have a checklist of things you should prepare in advance to increase your odds of success.

One small improvement you could add instead of can purchase your home in "As-is condition, for cash and close on your time frame."

to

"We can purchase your home quickly or in a flexible time frame you dictate, in cash, without closing costs or commissions and also without any need for repairs." 

@Ray Lai

Thank you for the insight! And ya I would love to take a look at some templates. I’ll PM you.

@Daniel Johnston

This is how I will write the letter

Dear "SELLER NAME"

I noticed you own the property at TARGET PROPERTYand I would like to know if you would be interested in selling it

i like to know if we can work something out, please call me at XXX-XXX-XXXX

I am a private home buyer and I can provide you with a Competitive Offer on your property with no Realtor commissions, and I will buys "As-is", no repairs needed

Please give me a call at xxx-xxxx

Thanks,

Daniel Johnston

Originally posted by @Hector Perez :

@Daniel Johnston

This is how I will write the letter

Dear "SELLER NAME"

I noticed you own the property at TARGET PROPERTYand I would like to know if you would be interested in selling it

i like to know if we can work something out, please call me at XXX-XXX-XXXX

I am a private home buyer and I can provide you with a Competitive Offer on your property with no Realtor commissions, and I will buys "As-is", no repairs needed

Please give me a call at xxx-xxxx

Thanks,

Daniel Johnston

No..no...no...You are NOT a private home buyer. You are not buying the home. As a wholeseller, you are assigning the contract to another investor. I would be pissed, as a seller, if I were to find a totally different dude sitting across from me at the closing table, if I walked in with the understanding that I was selling my house to you. 

I do not believe you need to disclose you are a wholesaler. I actually don't think you should ever mention it. That leads to an unnecessary conversation where people won't want to work with you because no one knows what a wholesaler is. You are an investor. At the closing you could have the buyer come by at 12pm and do their part and at 2pm have the seller come by and do their part so they never meet because the buyer may even try to cut you out of the deal if they meet beforehand. 

So long as they get their money no one cares. What you do NEED to do is PERFORM. If you quickly get houses under contract just to secure it with the thought that you can just back out if the deal you negotiated doesn't turn out to be great then that is bad business and word will get out. 

Good luck with your campaign. I can't wait to start mine.

@Chinmay J. What we are forgetting here is that you just want to seller to call you that's why you are sending the letter. The presentation, negotiation, the contract agreement and how you will handle the showings of the home to other investors is a different process.

The goal of the letter is to receive a call

When I close my deals that I wholesale or the deals that I purchase to rehab, I will never show at the same time as the seller. 

@Ray Lai

I would love to take a look at some templates too.

I agree with @Cody Evans that the word Wholeseller doesn't need to be used as it leads to unnecessary complications. 

@Hector Perez at the same time, I believe that letting the seller know upfront that you are not the buyer is important. Lot of wholesellers get bad reputation for the same reason. Hence, I suggested use of the word "we", so the wholeseller can at least have some wiggle room, and won't be cornering himself into a tough spot.  

Thanks for all the input! This has been super helpful!

@Justin D.

Sure Justin, sending you them now.

@Ray Lai try looking at offers 2 owners, they have letter templates that can help guide you.

@Ray lai if you could send me the templates and checklist that would be great too. Im just getting started and need a little guidance as well. 

@Cody Evans Yes you should always inform them that you are not the end buyer if in fact that is true. And if you know how to pitch it, it wont make any difference because we are all already well acquainted with middle men in real estate (can you say realtors?). We provide a service. We will find a cash buyer for your home in X days, we will save you from the foreclosure process, we will save you from losing it to the bank, we will save your credit, we will relieve you of the nightmare of tenants and on and on...

Then you cannot be cut out because there is a detail that was left out. The wholesaler has the purchase agreement. The buyer cannot legally cut us out without us first voiding the contract. 

Transparency first bro. 

@Ray Lai

Hi Ray, would you be willing to share your templates/checklist with me as well? 

Thank you!

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