Bandit Sign Success Rate

28 Replies

I realize a whole bunch of variables are involved here (location, experience, market, etc.) but I was wondering what kind of success rate numbers you folks are finding with bandit signs? As an example, a colleague of mine uses a mailing list from a marketer....he finds that on average, for every 1000 letters he sends he gets 35 responses....of those 35 responses 1 results in a deal.

How is it working with your bandit signs?

I bought 100 bandit signs when I first started and I put out 10 to 20 every Friday. I received roughly 30 calls from the 100 signs but none of the calls lead to appointments. I personally feel that my money and time is best spent producing direct mail campaign.

Stinson,

What kind of success rate have you had with the direct mail and what client base do you focus on?

Chuck

I put out 50 signs two times, in different areas. I got one call each and one was another investor, complaining about his lack of response from them as well. My results may be unusual after reading about how bandit signs are so amazing. But I've given up on them for now as the cost and time involved hasn't been worth it to me.

Chuck,
In my experience, bandit signs will offer you about a 5-8% response rate. Hang 100 up, you can expect about 5-8 calls. Hope this helps.

I just ordered 100 signs ($155 plus shipping) so I will soon be able to tell you my success rate here in the Greater Boston Area but I was wondering how many wholesalers put signs on their cars and if they get any calls that way? For $25 I could get 2 signs - figured one for each car for the back. I am typically skeptical of anything that sounds too good to be true and if I were a homeowner reading a sign that says "...Cash, close in 7 days" I probably would not think its possible.

Cheryl:

We had car signs on 2 cars (both sides) years ago. Not one call. I think in the northeast, people's pride is too attached to their homes. I don't think anyone wants to call your sign and then have you drive up in front of their home for all the neighbors to see. A Century 21 Realtor's sign? Maybe. But not a WE BUY HOUSES FAST sign. JMHO.

Medium step buys houses logo 13Ibrahim Hughes, STEP Buys Houses LLC | http://www.StepBuysHouses.org

I found that out of 1000 bandit signs posted I'll get about 50% pulled down by code enforcement and from the rest I'll get 30-40 calls with about 2-4 being potential deals and usually 1 deal that actually gets done with it. Although from the other 2-3 potential deals that don't go through I always follow up on those six-nine months later and find I can usually get another deal from that as well.

Well worth it in my opinion.

Wow, everyone seems to have a negative view on bandits.
Last month 25 signs, 16 calls (+1 from a cop I didn't call back)

This month 32 signs, 10 calls - However this month I had paid someone to put them out. I checked the placements of the signs, I don't know what the hell he was thinking. Half of the signs were facing the wrong way or on Interstate on-ramps instead of Exits like I had stated. I'll probably do it myself the next couple weekends then try again with someone else.

I just ordered 200 I'll track the details a little better and post my results. BTW I use a answering service for my calls that has a local area code so I just display the 7 digits.

WE BUY
HOUSES
any condition/situation
555-5555

The signs don't stay out very long in my area, some areas won't make it through the day. Even when placed on Saturday!

I had quite a bit of response from 100 signs. most of them short sales that were locked by realtors. homeowners trying too sell the propertie for retail prize etc

Are bandit signs effective? Yep.
Are investors making a bad name for themselves for using them? Yep.
Are there other effective ways to advertise within the confines of the law? Absolutely.

Many investors do things like post these bandit signs in violation of local codes and wonder why people have a distaste for real estate investors....

We're often our worst enemies, people.

Just something to think about.

Medium fbprofileJoshua Dorkin, BiggerPockets | http://www.biggerpockets.com | Podcast Guest on Show #100

mine stick in the ground and look like realtors signs. therefore till now i only received one angry call. people as soon as they see those think that we have a magic wand and buy every propertie out there. so thats why i make myself clear(on who we are and what we do) before i start talking to them


Are they ugly? Yea.
But if someone is motivated to sell do you think they care? NOPE.
You should be pursuing direct mail and website traffic but neither are cheap. PPC advertising works but the traffic is limited compared to organic SEO traffic. I've called a few of the National WE BUY HOUSES websites that take rank on search engine results.
$75 a lead! No way can I afford that.

I just ordered 100 signs myself and will be putting them up over the next couple of weeks north of the Boston area. I'm curious to see how well they do but everyone I've talked to swears by them. Cheryl I was also thinking of getting some magnetic signs for the car myself as I figured it couldn't hurt to be a moving billboard and when I visit with property owners I can take them off.

John, that's exactly what you do with the car signs - take them off before leaving your office for the homeowner, take them off while at the local bar even if only for food!

I sincerely hope I never run into a problem with putting out bandits, I don't know what I would do. I Put out 40 signs 9/30 and have 21 leads so far. I would be surprised if I don't get 40+ calls from those 40 signs. Made a couple quick verbal offers and looks like I'm going to go and look at two of them.

I try not to press my luck by (usually)only doing 25 at a time and spreading them out as much as possible. I probably drove 100 miles putting those 40 out.

Bandit signs can work but most of the time they get picked up very quickly. If you live in an area flooded with signs(the city doesn't care) I say go for it! But if you live in a city where there are no signs, don't put them up. That means the city picks them up and if there are no other signs, yours will stand out.

It really depends where you live I think.

Originally posted by Grant Hwang:
Bandit signs can work but most of the time they get picked up very quickly. If you live in an area flooded with signs(the city doesn't care) I say go for it! But if you live in a city where there are no signs, don't put them up. That means the city picks them up and if there are no other signs, yours will stand out.

It really depends where you live I think.

So, if I understand you correctly, we should focus on using marketing that doesn't stand out? :wink:

Bandit signs, billboards and car magnets just don't work for we buys. The reason is because when someone wants to sell the type of house you're looking to buy, they want to sell it FAST. So unless your bandit sign pops up at the exact precise time and location, you won't get any action on it. When people want to sell, they go to the internet and do their homework.

Very old school! There are a lot more professional ways to approach getting deals. I found that the only leads I got from bandit signs were junk. People in a war zone behind on payments.

If you do choose to use signs, make sure you answer live, that 24 hour recorded message is gonna loose your good ones for ya!
:mrgreen:

Medium screen shot 2017 05 20 at 8.00.17 pmRob Gillespie, Rob The House Guy, LLC | [email protected] | 330‑635‑9717

Most motivated sellers do not call signs. Bandit signs worked 10 years ago, but they are now simply visual noise. I prefer direct mail. I send about 6,000 pieces a month, and consistency contract 3-4 houses.

You have to be in your target seller's face when they have a trigger event. A lot of stress is delivered in the mail!

So if you guys had $300-$500 to spend on marketing what other form of marketing would you spend it on in place of Bandit Signs?

@Donovan R. you had a High response rate did you end up closing a deal? Did you break even on your sign investment?

Originally posted by Stinson Bland:
I bought 100 bandit signs when I first started and I put out 10 to 20 every Friday. I received roughly 30 calls from the 100 signs but none of the calls lead to appointments. I personally feel that my money and time is best spent producing direct mail campaign.

Good point but how do you who to send to?