All Forum Posts by: Doug Haisten

I heard in a podcast this morning that due to the declining inventory using 70% ARV was not working and this company was getting clobbered due to offering a much smaller amount than what their competition was offering using 80-83 % ARV. This company is in a large city with what is probably a hot RE market. Where I live with all the ups (and downs) the market never really gets that hot. I also don't think there is a great deal of competition. Am I wise staying at the 70-73% % ARV?

Doug

Sharon how has this drop in effectiveness (of direct mail) affected the number of mailers you send out or the frequency?

Doug

(Sorry for the mis-post)

I sent out my first direct mail campaign. I was pleased to get over 20 calls out of 551 cards sent out. The area where most of the leads come from are rural lightly populated areas. Zillow and Realtor.com often don't show very many (if any at all) houses that are comparable to the property I am analyzing. How do I determine ARV if there isn't any past sales of a similar house to compare to?

Doug

Who do you mail the letter to? The vacant house address?

The results thus far from my first mailing was about 3.4% response. Most of the calls I received were within a few days of me dropping the cards at the post office. I was a little surprised, sort of, of me getting calls 2-3 weeks after. I have another full time job. Some of the calls I took others went to VM. Everyone that called (except the ones I answered) left a message except for 2 people. Some were hang ups when they understood I was an investor. Not sure what difference though should make to them. I was expecting to find houses/owners in some distress but most of the callers I had (out of state absentee owners with high equity) their homes were in top notch condition and none were really in a need or hurry to sell. I need to sharpen my trade craft on how to handle these types of properties. My 2nd mailing goes out in 10 days. When I get a prosepect whose house is like I mentioned that I probably won't be able to make a deal with do I cull if from my list or keep on mailing to them?

Doug 

@Nicole Griffin Are you working investing full time or do you have another job? Do you have a phone script? I practiced my script for 2 days but when I actually started getting calls I was caught by surprise. Be ready to take notes and organize to keep track of the calls and following up with the sellers.

@Braden Smith Thanks Braden, this will be helpful. I didn't expect the number of calls. I am doing RE while working another job and it gets challenging to try to do an interview while at work and talking on my cell phone at times I have to speak louder for the person on the other end to hear me.

I like the response I get when I ask questions about the house seller: "why do you need to ask that, you sent me a card saying you wanted to buy the house". A couple hung up when they learned I am an investor, probably tire kickers anyway. I've had 9 calls in 3 days since I mailed out 551 cards sent. Of those nine I have 2 that are prospects the others either were the hang ups or not the deal I am going for, at least not right now.

There's nothing like actually handling phone call to get experience. ll the self practice or practice with friends prepares you enough for an actual potential client  on the phone.

Doug

Thanks to ya'll for the replies and advice.

I mailed 551 yellow post cards with 1st class stamps to out of state absentee owners. I had four people call the day the cards hit. This was my first mailer and already gearing up for the next mailing next month to the same list.

 I've read many a post and podcast about the importance to mail at least 5 times to the best results and that's my plan. 

An observation: Like many people I get yellow letters and post cards too. I put the date on these pieces and file them. I haven't received a mailer twice from the same sender. One and done.

Doug