Early results on yellow letter mailing

Real Estate Wholesaling Questions & Answers 89.2K Posts 11.9K Discussions

So do you direct the calls to an answering service or answer them yourself?

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.

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

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.

Originally posted by @Account Closed :
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?

Medium gary logo  2 Gary Parker, GaryBuysHouses | [email protected] | 801‑635‑4756

@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.

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?

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.

Sincerely,
Jon
512-666-xxxx

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

Here's what it looks like, though the copy is slightly different on this one:

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

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.

Medium facebook profile logoSam Craven, Senna House Buyers | [email protected] | 832‑722‑4815 | http://www.SennaHouseBuyers.com

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.

Google Voice will capture hang ups.

3K a month will keep you busy!

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

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...

Medium facebook profile logoSam Craven, Senna House Buyers | [email protected] | 832‑722‑4815 | http://www.SennaHouseBuyers.com

I've got verbal agreement after an offer and counter-offer. Very close!

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

Congrats Jon! Keep us posted.

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

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

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?

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."

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

The line I use is "Based on your situation, it sounds like I may not be the right solution for you. Thank you for calling though."

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.

Medium realstarter2Bryan Hancock MBA, RealStarter | [email protected] | (512) 827‑9638 | https://www.realstarter.co/Home/BH

Jon, congrats on the yellow letter success! It sounds like the start of an interesting gig in Austin.

Jon - what was your final response rate from the 750 mailer?

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.

Anyone recognize the song lyric above?

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

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.

Medium facebook profile logoSam Craven, Senna House Buyers | [email protected] | 832‑722‑4815 | http://www.SennaHouseBuyers.com

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.

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

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.

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

Originally posted by Mike M.:
Jon, congrats on the yellow letter success! It sounds like the start of an interesting gig in Austin.

Mike, you need to come down and check out one of the hottest markets in the fastest growing top 25 city in the nation.

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