Early results on yellow letter mailing

Real Estate Wholesaling Questions & Answers 89.4K Posts 11.9K Discussions

The mailing arrived yesterday and I started getting calls shortly after noon. I just checked my call history and I've had 28 calls since then. The mailing was to a list of 465. This is the best response rate I've had so far just one day after the letters hit. No sure deals yet, but a few possibilities.

I had planned to have a light schedule late this week to be able to take as any calls as possible, but life happens so today was crazy. I need to keep up though, because if I put off too many return calls, opportunities will be wasted. Not only that, but there are nearly 600 more letters scheduled to go out as soon as I ready. That was going to be next week, but now I see I need to put it off until after Thanksgiving.

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545

@Jon Klaus Nice response rate! I have a somewhat related question, I was going to drop my mailers tomorrow, they would be out by monday of thanks giving week. Should I wait until after the holidays to drop mail? I am fine taking calls over the holiday, im just afraid my response rate will decline because its thanksgiving week.

If I was ready, I'd mail tomorrow.

Check out this thread:

http://www.biggerpockets.com/forums/87/topics/78912-a-few-direct-mail-questions

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545

Glad to hear it's going great so far- hope some turn into great deals. Keep us posted!

if you dont mind sharing, where did you get your list from and what type of seller was it targeted at? (Probate, absentee, pre foreclosure, etc.) Congrats on such a good response rate!

Curious to hear more about what you are sending and who you are sending it to and how you have developed this list?

Thanks for sharing!

General rule of thumb I've found -- when mailing to absentee landlords/investors, the calls you get the first day are usually good calls; when mailing to distressed homeowners, the calls you get the first day are generally the, "Take me off your now now!!!" variety.

Hopefully, your list was targeted at investors or those with equity, and hopefully you can convert a few!

Originally posted by Josh Rogan:
if you dont mind sharing, where did you get your list from and what type of seller was it targeted at? (Probate, absentee, pre foreclosure, etc.) Congrats on such a good response rate!

I'm working with Jerry Puckett of New Refined Images. Also here at BP. He pulls data from Public Records in a manner very similar to Core Logic.

We are targeting Out of Area and High Equity owners who have been in the property 10 years or more.

Jerry does the mailing and I take the calls.

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545

Originally posted by Tim Delp:
Curious to hear more about what you are sending and who you are sending it to and how you have developed this list?

Thanks for sharing!

I'm sending a half size "hand written" yellow letter (really a note) . They are in small white envelopes, also "hand addressed."

Developed list by using these filters: Mininmum 1800 square ft, 3/2, 10,000 sqft lot within 10 miles of 78702 in a westward semicircle. Sending to high equity and out of area owners who have been in the property a minimum of 10 years.

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545

9 more calls today. Nothing great, yet.

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545

J Scott and @Jon Klaus I have not found the NOOs with equity lists to be a good source of leads that close for the last several years. Most of my leads that do close have equity. But I find to get access to that equity I have to target a distress and get a call based on that distress (or distresses), and then problem solve. It also appears in my markets that NOO/high equity owners are getting bombarded with mail this past year. No surprise there as REO and foreclosure sale buyers have had to move to direct marketing to keep their crews and cash working. But kind of a bummer because my marketing pieces are one of many now. Even if I have a unique selling proposition, it's probably being read with glazed-over eyes, or not read at all. :)

Hmm, K, makes sense. I did well on the same kind of list earlier in the year, but this list is different area. I'm looking to buy just one house out of this mailing. Any others will be icing.

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545

@Jon Klaus Your marketing piece and lists are obviously working because your phone is ringing. It's just my experience that there is now big gap between response rate and close rate. I found a new market recently and the response rate was great. But the calls were from SO many owners who said they had never received a letter looking to buy houses before And they freely admitted they just wanted to see who I was and what I do (even the ones with properties about to go to tax sale or foreclosure sale). I'm a follow up buyer so I know how to stay in touch. But I can tell you that community has sellers that will die before they sell.

All that said, I do wonder why investors don't target more distresses to create equity. I got the deed to a property six months ago that has just about every distress. It's out-of-area owner (me), tax defaulted, seller was also NOO and BK and there are HOA liens. It's also hugely over encumbered (and I'm negotiating a short pay). I've received zero marketing from investors. And where are all the SS agents? The seller would have worked with an agent in a heart beat. I gotta say though that the water filter companies and gardening services are all over the mail marketing to new owners.

@Account Closed Sounds like with these sort of inventory levels the wholesalers are going to go out of business!

Just 3 calls today. I have a bunch of voice mails and hang ups to call back tomorrow.

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545

Originally posted by @Samantha M. :
K. Marie Poe Sounds like with these sort of inventory levels the wholesalers are going to go out of business!

Only the ones who slack up on their marketing....there will always be distress. There's just more competition now. No worries....many don't have an adequate marketing budget, or a very good idea how to put it to work.

Medium mlaw logo v1Jerry Puckett, New Refined Images LLC | [email protected] | (214) 699‑7565 | http://www.marketlikeawholesaler.com

@Jerry Puckett How many mailers per month would you recommend for someone starting out that would be "adequate" ?

I just sent out my first marketing campaign earlier last week. About 1200 letters.

Originally posted by Samantha M.:
How many mailers per month would you recommend for someone starting out that would be "adequate" ?

I just sent out my first marketing campaign earlier last week. About 1200 letters.

Your response rate will tell....If those 1200 letters get you a deal and you need one deal a month you're just right. Did you budget such that you can maintain consistency...mail to that same list 3 or 4 more times?

If on the other hand your initial mailings are giving you dismal results, it may be wisdom to invest in some help.

Medium mlaw logo v1Jerry Puckett, New Refined Images LLC | [email protected] | (214) 699‑7565 | http://www.marketlikeawholesaler.com

@Jerry Puckett Yes I did budget to consistently mail the same amount each month. I am keeping track of my response rate with good old fashioned pen and paper. I definitely know who to call if things are looking bad!

From the sounds of the post, you if I am targeting good leads, I should be able to source a deal once a month? I really didnt expect things to move along THAT quickly. I figured I would have to mail the same individual a few times before I was able to get something under contract.

Originally posted by @Samantha M. :
I should be able to source a deal once a month? I really didnt expect things to move along THAT quickly. I figured I would have to mail the same individual a few times before I was able to get something under contract.

Whether or not you get a deal depends on a great many things. Your list and letters are merely the door openers you understand. You still must negotiate, etc. for there to be a deal. The better your response rate, the more people you get to talk to, and this is a numbers game as you know.

@Jon Klaus , Sorry my friend....did not mean to hijack your thread!

Medium mlaw logo v1Jerry Puckett, New Refined Images LLC | [email protected] | (214) 699‑7565 | http://www.marketlikeawholesaler.com

Just three calls today, but one was very promising. I plan to make an offer tomorrow.

It's been a long day. I drove from Dallas to Austin in the morning to meet with an architect. Then I looked at a bunch of houses for design ideas for a new construction project. Then after 4pm I took a call live from the mailing. Motivated seller with a property that fits all my criteria very well. Went to look at it and it is a fit. Hopefully I'll get it under contract tomorrow.

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545

Poe Wrote: And where are all the SS agents? The seller would have worked with an agent in a heart beat.

I gave up sending letters for short sale listings earlier this year because of no response from new NODs. I sent a total of 4 letters spaced about a week apart but got no response. I think those owners must just have their heads in the sand or my letters were just not good. I got content ideas from another forum specifically for short sales.

I made a written offer around 3pm, but no response yet.

Just 2 or 3 new calls today.

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545

How are you finding the quality of the calls to be?

Originally posted by Ram Gonzales:
How are you finding the quality of the calls to be?

Most are not motivated. My expectation is that about 1 in 20 has very good potential. I'm a different kind of buyer than most wholesalers, though. I have specific criteria for a certain family I am moving to the area, so I want more than a wholesale price. At the same time, I will take one that has a low drag $10k assignment fee.

Jon Klaus, SellPropertyFast | [email protected] | 214‑929‑6545