Are yellow letters worth the money?

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Are yellow letters worth the money?

Account Closed

Specialist · Burton, MI · Member since 2016 · 27 posts · 4 votes

Is paying yellowletters or yellow letters complete worth the money?

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Originally posted by @Alex Craig:

Drive for dollars, find distressed homes, research the address on various county websites and send them a series of letters (typed up) over a 6 month period.

and do it in your Tesla so your not spending huge money on gas and oil and tune ups..

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Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
It depends on what you are trying to do, where you are, and how picky you want to be. If you want to buy one rental, and want it to be turn key then no it is not worth it.
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Michael Quarles
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
8y
Good to meet you Curtis
I would not mail a yellow letter in all situations. There are times that a postcard, typed letter, or Zipletter will work better. Especially if your prospect group is a Multi Family or Pre-Foreclosure.
Reach out if you would like to know more.
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Dan Barli
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
8y
Hi @Account Closed stated, if you are looking for one turn-key rental, then it likely is not worth it. If you are doing a wholesale campaign and looking for leads, then it very well may be.
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Account Closed
OP
Specialist · Burton, MI · Member since 2016 · 27 posts · 4 votes
8y
@Dan Barli yes I am trying to start a wholesale business I was just wondering what would be the best bang for the buck yellow letter with hand written through like yellowletter.com or yellow letter complete?
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Dan Barli
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
8y
@Account Closed with wholesaling usually you should monitor and see what types of campaigns give you the best results. I know people have had success with postcards, yellow letters, handwritten letters, and other campaigns. You should be willing to commit to at least six months of mailing to determine what works for you.
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Account Closed
OP
Specialist · Burton, MI · Member since 2016 · 27 posts · 4 votes
8y
@Dan Barli Thanks Dan appreciate the advice
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Account Closed
OP
Specialist · Burton, MI · Member since 2016 · 27 posts · 4 votes
8y
@Aaron Klatt I am in the process of starting a residential wholesaling business and I am researching what is the best way to market it my funds are limited but I am working at it I just wanted to know should I do basic letters in a white envelope or do a yellow letter campaign or postcards I'm just trying to figure this out I appreciate the help
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Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
@Account Closed If your funds are limited it may not be best spent on a campaign at all. Response rates are about 1% so if you send a thousand letters which could cost as much as $500 you get 10 people who contact you, of that some may already have their home listed, just be curious, or be unwilling to sell at the price you would need them to.
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Claire Trammell
Bakersfield, CA · Member since 2016 · 543 posts · 281 votes
8y
Hello @Account Closed said above, yellow letters might not be the most appropriate medium to mail. First thing first is deciding if you are focusing on a specific group, and if so, which one. Then the strategy of which type of direct mail piece can be better determined.
Happy investing!
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Karen Rittenhouse
Flipper/Rehabber · Greensboro, NC · Member since 2010 · 623 posts · 615 votes
8y
@Account Closed
You're asking the wrong question. What you really want to know is what is the best way to find the customer you're looking for.
First, you need to identify your customer and craft a message specifically for them. Then you need to understand a lot of things including: how to comp the property, how to estimate needed repairs, how to determine what you can offer, how to find buyers for your deal.
Yellow letters are an unnecessary gimmic that most pros don't use once they understand the other items listed above, but every form of marketing works to some degree.
Good luck to you!
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Ed Tamayo
Investor · Sugar Hill, GA · Member since 2014 · 168 posts · 97 votes
8y
"Yellow letters are an unnecessary gimmic that most pros don't use once they understand the other items listed above, but every form of marketing works to some degree."
I have to voice my disagreement with this statement. While there are other ways to drum up business, yellow letters do work very well and is a tool used by professionals. Millions of dollars in transactions start every day with a yellow letter. I personally have used them and I just a couple of weeks ago I had the chance to make an offer in a house with an after repair value of $400K after sending only 40 letters!. (Granted, I target very specific properties, but the model could not work without the yellow letters).
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BJ Ralphs
Flipper/Rehabber · Huntington Beach, CA · Member since 2017 · 42 posts · 13 votes
8y
I look at it kind of like this. how much of the JUNK you get in the mail do YOU read? -Now, add in the extra stress someone in distress might be experiencing and apply that mindset to reading the mail - Me, not interested.
I personally throw almost everything away without even looking at it. - Now I might be extreme, but DM can be very expensive for the small return of 1% or less.
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Manuel PradoPro Member
Midland, MI · Member since 2015 · 56 posts · 17 votes
8y
@Curtis Worth to answer your question YES they do work, just like any other piece of writing works as well. These are the things that would raise the probabilities of working even better: Target your audience Tailor the message to that audience Mail consistently Mail consistently again. This is probably the most important one. It’s amazing how many deals we have done on the 3rd 6th letter someone has received. Think about it, someone who may be thinking about selling receives your letter today, but they don’t call you. They get a second and third and fourth letter afterwards. They may have received who know how many letters from other investors. If you are the only one who continues sending them letters, who would they most likely call?
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Jerryll Noorden
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
8y
Is paying yellowletters or yellow letters complete worth the money?
no no no me me meee
I got the correct answer me meee
Ready?
The answer is ...
YES it is worth the money IF.. you made a deal from it.
If you make just ONE deal from a yellow letter that cost you a dollar and fitty cents to send... and you make 40K from that deal.. obviously it is worth it (as long as you didnt send 40000 yellow letters and made just one deal...)
Did I win?
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Account Closed
OP
Specialist · Burton, MI · Member since 2016 · 27 posts · 4 votes
8y
@Manuel Prado That makes sense I'm just trying to get started I have my llc and business cards I'm just focusing on marketing and I see that your not to far away so your market would probably be somewhat similar could you tell me what you do to market for properties ?
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Account Closed
OP
Specialist · Burton, MI · Member since 2016 · 27 posts · 4 votes
8y
@Ed Mayo what website do you use for yellow letters or do you do them yourself?
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Manuel PradoPro Member
Midland, MI · Member since 2015 · 56 posts · 17 votes
8y
@Curtis Worth are you trying to wholesale, buy and hold, fix and flip? For any of them I love marketing to properties that have lots of equity. 80% or higher. The tax delinquent is a good list, and lately we have bought lotmof properties from people close to retirement or elderly about to go to assisting living. I have used Yellow letters.com as well as modern postcards and click2mail
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Account Closed
OP
Specialist · Burton, MI · Member since 2016 · 27 posts · 4 votes
8y
@Manuel Prado I'm trying to wholesale residential I've just read so much that I wasnt sure if I should mail normal letters yellow letters or postcards for best respinse rate with quality leads and how many to mail to have a high chance of landing a deal?
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Manuel PradoPro Member
Midland, MI · Member since 2015 · 56 posts · 17 votes
8y
@Curtis Worth It’s hard to say which one would work better. I have mixed them up and have had good success. I always start with postcard, yellow letter, travel postcard (thIs one catches lots of attention because Is hard now a days to receive a postcard of mackinaw Island for example), formal Company letter, yellow letter. You can send in intervals of 3-4 weeks between batches. If you’re by yourself I wouldn’t send more than 500 at a time. That phone would have to be ringing everyday so you can get leads, appointments, contracts signed, contracts assigned. Hit the same person 4-5 times with each of those letters. Re use the same mailing list twice or 3 times a year if possible(depending what type of list you use). The list where I find lots of motivated sellers is tax delinquent (“people who may owe 2k or more for more than a year or two)
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
8y
Drive for dollars, find distressed homes, research the address on various county websites and send them a series of letters (typed up) over a 6 month period.
901-848-9028
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Manuel PradoPro Member
Midland, MI · Member since 2015 · 56 posts · 17 votes
8y
@Alex Craig One of the best strategies out there definitely. Thanks for the reminder Alex craig
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Ed Tamayo
Investor · Sugar Hill, GA · Member since 2014 · 168 posts · 97 votes
8y
@Curtis Worth
"@Ed Mayo what website do you use for yellow letters or do you do them yourself?"
I either do them myself or use Expresscopy. I use expresscopy if I have a relevant graphic specific to the location because they can do postcards better than I can. Letters, with envelopes, I do it myself. Keep in mind that I send small numbers - Today I am sending 62 letters and is kind of a high number for me) . This time, I am addressing the letters by hand but this is something I have never done.
I have also used direct mail for selling properties. In one occasion, my real estate agent offered to take 2 points of her commission because I found the buyer through direct mail. (This was land with an 8 % commision.)
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Isaac Barrow
Rental Property Investor · Indianapolis, IN · Member since 2017 · 84 posts · 35 votes
8y
I would say they are, if you're looking to wholesale. However, as Michael said, you can use postcards or other types of mail pieces, but I would say if you're looking to wholesale, it's a good way to put yourself in front of owners.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Account Closed:
@Aaron Klatt I am in the process of starting a residential wholesaling business and I am researching what is the best way to market it my funds are limited but I am working at it I just wanted to know should I do basic letters in a white envelope or do a yellow letter campaign or postcards I'm just trying to figure this out I appreciate the help
wholesaling with no to little capital is not really something that has much chance of success you can try it.. and if your lucky and land a deal out of the chute you could be off and running.. but keep in mind its a numbers game.. and those that do wholesaling successfully have fairly substantial marketing budgets.. in the 5 to 50k a month range.. if your limited on funds you may want to start with door knocking … or your own door hangers that you print one off then take to kinko's or some other cheap printer.. walk the neighborhoods and put them out yourself.. if you have kids have them do it with you.. that's what I used to do for my dad.. back in the 60s.. every sat and sunday I was walking the mean streets of the SF bay area doing door hangers..
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Alex Craig:

Drive for dollars, find distressed homes, research the address on various county websites and send them a series of letters (typed up) over a 6 month period.
and do it in your Tesla so your not spending huge money on gas and oil and tune ups..
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
2 Reply

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