Direct Mail

So, we’ve spent quite a bit of time on direct mail, and learned a few things in the process. A lot of people say it’s a waste of time, but I say;
The very first letter campaign I did was 100 absentee letters (pre-1995 transfer). I received ONE phone call which turned into my very first deal. $10,000! How’s that for a waste of time?

It’s only a waste of time if:

1. You don’t know what you’re doing.
2. You’re sending to the wrong people.
3. You write the wrong info. (Too much or too little)
4. You’re just plain lazy.

Tips:

1. KISS – Keep It Simple Stupid. If you are sending a letter, you should be able to get your point across in about 3 sentences. Post cards should be even fewer; like a tiny bandit sign you can hold in the palm of your hand… Get to the point.
2. Timing – I’ve found that direct mail as well and bandit signs do terrible around the beginning of the school year. I’ve had the best response around mid to late spring; 8-10% return.
3. Don’t spend too much money – I get lists for free through my Title Company.
4. Know where investors buy – target areas where you know your buyer’s list will buy, then you won’t be wasting time with property nobody wants. You should never put a property in escrow that you don’t know you can sell.
5. Use a local number – Get internet voicemail. Skype, Voicemailoffice.com, Google Voice. Especially if you are a busy person. Call back EVERY person, even if they don’t leave a message. I have separate numbers for mail and bandit signs.
6. Follow up with more letters or postcards.
7. Expect A LOT of RTS’. I usually get about 8% returned. Go back and edit/delete from your list.
8. Follow up on the phone calls – The laziest people I’ve ever met have been agents and people who CALL themselves “Wholesalers.” If you don’t want to work hard to make money, don’t even waste your time in Real Estate.
9. Keep track of EVERYTHING you do! It is so unbelievably easy to lose track! Every phone call or letter that you forget to follow up on is money potential lost. Worst case scenario – you lose the $00.60 you spent in marketing.

Our latest absentee campaign through Click2Mail.com was 830 postcards that cost us about $00.40 per card and saved HOURS of work. So far on day one of the call backs, we have about 10 calls.
Still, bandit signs have worked best for us. Hands down. For every $230 spent,  we generally make about $25,000. And, a good number a signs will stay up for a while, which is continual exposure.

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The New age Hu$tlers in Real-Estate Investing!

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