How do you address disclosure in your (non-brokerage) Yellow Letters ?

Question

Hello BP Real Estate Pros,

I am considering a Yellow Letter campaign (for personal fix & flip investing, not brokerage) but don't want to kill the effectiveness of the "guy next door" feel with the required disclosure of my licensed status.  How have you addressed this (your letter verbage) if you have ever used Yellow Letters for personal investing?  Did you find your approach effective ?

Some sellers may feel more comfortable working with a licensed pro since it reduces the potential in their mind of someone being a "fly by night" scammer.  I imagine disclosure could be used to stress that "I know what I am doing and have a license to protect" in the letter.

Your thoughts?

Thanks
MAX

J Scott · Answer

I've mentioned here on BP that this is the only downside I've seen to having my license. That said, I don't think it's been a huge issue, and it may even be working in our favor. While we don't do the short "I want to buy your house...call me!" yellow letters anymore, the longer "I'm a real estate agent but don't want to list your house...I want to buy it!" letters seem to do just as well.

Spin it into a positive...the fact that you're licensed gives you credibility in the eyes of many unsophisticated homeowners...

Michael Quarles · Answer

Bill in California it's impossible to have agency with yourself.  And I always hire a broker to sell.

Michael Quarles · Answer

The only reason I don't disclose that I'm a California Broker is that I am not for hire and I don't enter agency as a broker ever.

I do disclose on my agreement to purchase as I think it's an ethical issue not doing so although I'm still not required to.

And without a doubt the non agent letter out performs.

I tell all customers to disclose if they have the intent to push a listing if they can't buy.   Not doing so seems creepy and wrong.

Michael Quarles · Answer

My Board challenged me on whether or not it was a requirement to disclose on first contact direct mail.

Their final ruling, after a tribunal  hearing, was as long as the mail piece was not soliciting for compensation or expectation of agency relationship no disclosure is required on first contact direct mail.

Michelle Kadushin · Answer

Michael-- I am currently using your yellow letter campaign. I am an lic.salesperson in nyc. I didn't have a virtual address for the return label and used my brokerage office. Within the letter I was instructed to use ( I thought I should disclose) a p.s. with my lic #. Well today an angry seller physically came into the office to instruct me to take them off of my mailing list. Since they showed my broker the "letter" my broker instructed me that I was breaking DOS rules and company rules since the brokerage info was NOT within the body of the letter AND wanted to know "how " I am buying property "all cash" etc etc. What the hell did I go wrong? Should I have not put my lic# and disclosed? should have NOT listed the return address of my broker down, since I would not be "listing" deals??? 
Any direction since you are an investor and a brokerage. I now have an LLC and virtual office address for the "investor side" of my RE business and I am an active salesperson. I am trying to be an wholesaler. I have built up my buyer list quickly with no headaches presenting myself w/ my LLC. The sellers have called me a "disgrace" since they now I have a lic. and has my office info. One person googled me and sent me an email via my salesperson email. Any direction you can point me (I know you are busy) will help. Out of all the million post on this topic you are the only one that made sense to me. HELP. 
Many Thanks --Give Norma "hello' from me ( she is awesome)

Michelle Kadushin · Answer

Michael-- I am currently using your yellow letter campaign. I am an lic.salesperson in nyc. I didn't have a virtual address for the return label and used my brokerage office. Within the letter I was instructed to use ( I thought I should disclose) a p.s. with my lic #. Well today an angry seller physically came into the office to instruct me to take them off of my mailing list. Since they showed my broker the "letter" my broker instructed me that I was breaking DOS rules and company rules since the brokerage info was NOT within the body of the letter AND wanted to know "how " I am buying property "all cash" etc etc. What the hell did I go wrong? Should I have not put my lic# and disclosed? should have NOT listed the return address of my broker down, since I would not be "listing" deals???
Any direction since you are an investor and a brokerage. I now have an LLC and virtual office address for the "investor side" of my RE business and I am an active salesperson. I am trying to be an wholesaler. I have built up my buyer list quickly with no headaches presenting myself w/ my LLC. The sellers have called me a "disgrace" since they now I have a lic. and has my office info. One person googled me and sent me an email via my salesperson email. Any direction you can point me (I know you are busy) will help. Out of all the million post on this topic you are the only one that made sense to me. HELP.
Many Thanks --Give Norma "hello' from me ( she is awesome)

Frank Geneski · Answer

Max Williams Awesome, I'd really be interested to see how it goes for you.  Keep us posted please!

Max Williams · Answer

Thanks guys for the good feedback on this topic.  @Frank G. My first small campaign of 250 Yellow Letters will hit mailboxes tomorrow and we will see what type of response it brings.  I like many of the posters, think that it could work both ways.  Since my leads are all 55 years or better, I will stress to them that I am a licensed professional in the business and don't want to take advantage of anyone and am not running a scam.  I read another thread where the Sheriff investigated a Yellow Letter complaint.  I guess it was a slow crime day.

Bill Gulley · Answer

That's kinda strange, if you don't hang your license with another broker, as a broker/agent, if you hold it yourself, an active broker's license, seems everything you do is through you, not sure you can divorce yourself dealing for yourself....even though you don't turn in the deals.....but whatever, you are in Cali....LOL :)

Bill Gulley · Answer

That's what I'm say'n J  Scott,

As a real estate professional I will show you what is in the market and what comparable homes like yours are selling for. Since my profits are acquired over time I can pay top dollar today for your property. Unlike investors who may be calling you with all kinds of low offers designed to thier situation, as a professional Realtor I can ensure that you'll have a quick and easy transaction that fits your schedule.

Now, I'm no advertising type or hype master, but you get the idea.

Any seller who gets an offer from anyone not intending to live there already knows they are buying to profit.....so what? The question becomes not am I getting screwed, but by how badly, you want to deal with someone with iffy schemes and programs or to someone who shows them and can prove what the market is, pay a fair price and can follow through in a timely, professional manner?

How do you address disclosure in your (non-brokerage) Yellow Letters ?

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