Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
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.
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
13y
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!
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
13y
Originally posted by Ram Gonzales:
So do you direct the calls to an answering service or answer them yourself?
I use a Google Voice number that rings my cell phone. I try to answer live, but most calls go to a custom voice mail message. Maybe 30-40% leave a message.
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
13y
Originally posted by Shari Posey:
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.
Shari Posey How about properties without NODs? The property I was writing about has no NOD, same as many short sales that close in my area. IMO, negative equity plus one more distress (you pick) is better than NOD.
Real Estate Professional · Salt Lake City, UT · Member since 2010 · 609 posts · 163 votes
13y
Originally posted by K. Marie Poe:
Poe Wrote:
Shari Posey How about properties without NODs? The property I was writing about has no NOD, same as many short sales that close in my area. IMO, negative equity plus one more distress (you pick) is better than NOD.
K. Marie Poe this is very interesting to me. Mostly because in January I am going to start a plan for some sort of marketing to potential short sales ie NOD or 30-60-90. I am interested in some of the marketing strategies you have tried; for example, have you mailed to negative equity and out of area?
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
13y
Gary Parker I avoided shorts for a long time so I always culled my distress lists of negative equity properties, at least cursorily. But I would still get calls anyway from people with props that are upside down asking if there was anything that could be done. Some of them have turned out to be worth working as shorts. It appears to me that since non-NOD owners are not targeted maybe they aren't getting hit with so much marketing. Still need other distresses though to indicate possible motivation. Lots of upside down owners are paying on time. Or happily not paying if their lender is in a holding pattern.
Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
13y
Poe wrote--How about properties without NODs? The property I was writing about has no NOD, same as many short sales that close in my area. IMO, negative equity plus one more distress (you pick) is better than NOD. (I don't know how to use quote.)
There are some duplexes in my town that I liked like to buy and I wrote the owners whose property was overgrown, etc. but got no reply. I would say, my letter writing efforts have been disjointed. I have also tried door knocking distressed-looking homes and NODs without results. All my short sales have been referrals. Maybe it's just bad letters. Any ideas? Also, where are you getting your lists?
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
13y
This is the copy of the letter:
Dear Anna,
My name is Jon Klaus, and I’m trying to buy a house in the Manor area. I need to buy fast, so I’m going to pay cash, looking to close in 30 days or less.
Your house at Blake-Manor Rd looks like a good fit...would you like to sell it to me? 512-666-xxxx. Call me and let’s talk it over.
Houston, TX · Member since 2011 · 673 posts · 360 votes
13y
Thanks for taking the time to track your direct mail Jon, definitely helpful to compare response rates.
We are sending about 3k letters a month right now and have patlive numbers that go to a relatively lengthy message asking for name address and return number. I use a google voice number to return the calls. Your statistic that only 30-40% of callers leave a message has me worried as I have NO way to capture hang up calls with patlive.... VERY informative.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
13y
Originally posted by Sam Craven:
Thanks for taking the time to track your direct mail Jon, definitely helpful to compare response rates.
We are sending about 3k letters a month right now and have patlive numbers that go to a relatively lengthy message asking for name address and return number. I use a google voice number to return the calls. Your statistic that only 30-40% of callers leave a message has me worried as I have NO way to capture hang up calls with patlive.... VERY informative.
Houston, TX · Member since 2011 · 673 posts · 360 votes
13y
for beginners our deal flow has been very fruitful the last 5mo!
After a phone call and some investigating i have found that we CAN in fact capture hang ups. (claiming bone head beginner move here) And thanks to some helpful tools it looks like our VM/Call ratio is 51% leave a VM. Will take some time to drive it down per campaign and see what the data says. Thanks for opening my eyes Jon, there's money in those hang ups...
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
13y
Under contract! I now have a fully executed contract at $95k. Tax appraisal is $146k. We should close in 10-14 days.
The plan is to move my Dallas based GC and family into this Austin home so he can work on our projects there full time. This is a step in the direction of development and new home construction on a bigger scale.
I'd say this was a highly effective yellow letter campaign in that we found and contracted what we wanted in 10 days. And I spent little personal time, maybe 7 hours.
Shout out to Jerry Puckett, who ran the mailing for me.
Now I need to figure out when to mail the remaining 600 letters that are ready to go
Landlord · Dallas, TX · Member since 2012 · 505 posts · 34 votes
13y
Nice work! Grats!
Question for Jon Klaus and Jerry Puckett. When you are on the phone with someone that does not seem motivated enough to sell their house at a discount. How do you go about politely ending the conversation?
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
13y
Originally posted by Samantha M.:
Nice work! Grats!
Question for Jon Klaus and Jerry Puckett. When you are on the phone with someone that does not seem motivated enough to sell their house at a discount. How do you go about politely ending the conversation?
Ah, good question. I have learned to explain that "as an investor I need to pay under retail market in order to make an adequate profit. You are in a position to take some time to sell for a price that is close to retail market. Perhaps you would do better if you listed with a Realtor."
Sometimes they will then explain why they don't want to list with an agent and the deal may have a little life in it. Sometimes people just want to talk. If I think there may be a deal I listen. They are telling me how to pitch them. If not, I thank them for their interest and say, "I must let you go now."
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
13y
Cool deal Jon...glad we'll have a 4th solid builder in 02 now. If you find anything else save some equity for me :-) We have pretty much scoured 02 for more deals for about a year now and they're getting very hard to find. Prior, our data scientist, has some models built for other zip codes that we would like to look at helping you fund yellow letter campaigns for.
16th, Rockdale*2, and Crest*2 should all start construction before the end of the year if the city complies.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
13y
Originally posted by Kelly P.:
Jon - what was your final response rate from the 750 mailer?
Kelly, this mailing was 465 letters. Response rate is very close to 10%. But that is not final. Calls keep coming in daily.
My problem now is that I'm not so motivated as I have found what I was looking for from this campaign. Yes, I could wholesale any other deals, but that's not what I do. Yes, it may be wasting opportunity. My challenge is what to leave in, what to leave out. Too many opportunities, not enough time.
Houston, TX · Member since 2011 · 673 posts · 360 votes
13y
Bob Segar!
As far as how to politely get off the phone when there is little chance to do a deal, I refer them to a realtor I have a relationship with. That way I can still add some value to our interaction, and in the long run if they can't sell, I have someone that will refer the seller back to me.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
13y
Bryan, this one is in 78725, north east of the airport, about a 12 minute drive to 02. The deals are scarcer in 02, but worth more marketing $$ in my opinion. Of course SoCo and some other areas are very hot, too, as you know. We just hired the same architect you used on E 9th for out E 9th project. Catch up with you soon.
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
13y
Originally posted by Sam Craven:
Bob Segar!
As far as how to politely get off the phone when there is little chance to do a deal, I refer them to a realtor I have a relationship with. That way I can still add some value to our interaction, and in the long run if they can't sell, I have someone that will refer the seller back to me.
Excellent, Sam, I forgot about referring to an agent who understands reciprocation.