I want to create a cheap list since im on a budget, but I also dont want that to hinder me from learning something of my interest. I want to try to keep the list under $100, but I don't quite understand what to look for in creating the list that will still be worth value to send out postcards.
If anyone can guide me to some clarification, im definitely willing to learn, listen, and perfect my knowledge with wholesaling.
@Teonia Riley If you are concerned about keeping the cost of your list under $100, I Definitely would not be mailing postcards. You have to mail thousands in order to have a reasonable expectation of finding a deal. Could you get lucky and get a deal by sending out only 500? I suppose.
If it was me, and I was concerned about my budget...I wouldn't be buying a list. There are plenty of ways you can get decent lists without having to pay for them. Drive for dollars, code violations, water cutoffs etc...Then mail these people handwritten letters. Skip-trace the ones that get returned.
You're probably wasting your time, for two major reasons:
1. Direct mail, cold calling, and other techniques are a numbers game. The response rate is somewhere around 2% and out of those responses, fewer than 10% will result in a sale. You have to throw a lot of addresses into the hopper in hopes that a few deals shake out.
2. You have to be consistent. If you send 2,000 mailers today, you are unlikely to get a call. It may take you several months before you start getting calls and then - eventually - your mailers will start to gain traction as people start to remember you. You can't mail once, or even three times, and then call it quits. You have to set the money aside in advance, develop your plan, and then execute and continue executing even when you feel like giving up.
@Teonia Riley If you are a beginner, it would be best to work with a list broker who can make list suggestions for your budget. You don't want to simply focus on Absentee Owners because the chances are good that they are already getting a multitude of offers from all the other investors.
You might want some Absentee but add in Seniors with Long-Time Ownership and Owners with Low Financial Stability Scores (FSS).
Most list brokers will work with you to keep your budget where you need it to be.
@Teonia Riley Even with a hundred dollar budget on a list, you can get over 1000+ targeted records from Listsource. You can start sending postcards but make sure you have enough budget for at least 6 mailings. Response rate increases with each mailing and even if you get a 1% response that's 10 people. From all your 6 mailings, you can expect 60 calls and if you can convert 2% of them, that's one deal or if you're lucky you could get two.