20 units in 4 months via good letters and data

[Jasson Farrier]

Hey folks - I wanted to share some results using letters, combined with good data and persistence. I've been a real estate investor and agent now for a couple years but, at the beginning of 2021, I changed my marketing approach. My results have been good:  

The response rate went from .30% to 1.6%

Cost per lead went from 300.00 to 50.00

20 units purchased this year from this marketing plan. 

In short, here is the outline:

1. Figure out what you want to buy. The "buy box" or shortlist of the types of properties that I want to buy. For example, if you want easy flips, don't market to people that just purchased their house built in 1920. Not a good flip candidate. For me, the focus is multi family so I only market to the types of multis I want to buy. 

2. Get good data and stack it. When I started marketing I used the standard data sets you can buy online. I then figured out that stacking lists are the best way to find prime prospects. I went the cheap route and got the free county data, then stacked everything in excel.... which turned into a nightmare of data. The big change came when I moved from free data to propstream, combined with skipgenie. These tools allow you to find the right data including age and mailing address, then stack the properties in lists to know the ones with the most distress. 

3. Send good letters. My response rate with postcards was .30%. Then I moved to letters with colorful envelopes from Yellowletterhq.com. Just like going cheap on data, when I invested the dollars and time with the better mailers, the results came too. 

4. Go the extra mile with returned mail. Yellowletterhq.com provides a list of all the undeliverable mail when you place an order. Also, you will get back returned letters from ANK, or vacants. DO NOT THROW THESE AWAY!!! Instead, go to skipgenie and find out the correct address or owner and send them a new letter. Target the properties you want and then go to the end of the earth to find the right contact info. Most people stop at the returned mail...WEAK.

5. Manage the data. When you get the undeliverable returns or the not interested calls, be a ninja at managing the data. Keeping a correct account of the DNC's, follow-ups, or bad addresses will increase efficiency and decrease your cost per lead. 

6. Be a good salesperson. If you have no idea how to talk to a seller..buckle down and get your pitch right, take a course (or several) in sales so you become good at talking to sellers. However, don't delay your process to study. Just pick up the phone and go for it, then get better through education and practice. 

JF

[Jake Soper]

That's awesome, thanks for sharing these results. You hit so many points here that investors rarely think about. Points 1-4 are spot on advice for anyone marketing directly to sellers. Dont waste time marketing to properties you would/could never buy. 

Data is king. 

While I wont speak on YLHQ's behalf, Open Letter Marketing is the leader in personalized handwritten letters, and we can easily do all of these functions, while beating their price and service. That's a personal guarantee from me. 

If anyone wants some help with ideas for a mailing campaign, feel free to hit my line. I have templates, lead list type, and mailing strategy to offer.