Am i doing something wrong?

Question

Okay, so I'm very new to real estate. I've been wholesaling for 3 weeks and all I've been focusing on at this point is marketing. I have business cards that i pass out to everybody, and i mean everybody. I sent out 60 letters every week since I've started , i drive for dollars almost every day, and i drive around with a we buy houses sign with my phone number on my car and yet my phone is still dead. Ive had 2 calls, and those 2 people were not motivated at all, and Ive found 2 leads that werent deals in no way shape or form.

Am i doing something wrong? Am i marketing wrong?

Help and advice would be much appreciated!

Am i doing something wrong? Am i marketing wrong?

Help and advice would be much appreciated!

Seth Williams · Answer

Hi Nicasio T. - if I'm hearing you right, it sounds like you're trying a lot of different marketing mediums, but most of them aren't really producing much (if anything) for you.

It's called that Pareto Principle (aka - the 80/20 rule). If you're trying a bunch of different things - you'll usually find that around 80% of your results are being generated by approx 20% of your efforts - so the key is to figure out which specific 20% of your efforts are actually producing and then RAMP IT UP, big time.

I can tell you that in my business, the most powerful 20% of my marketing has been direct mail...   but there's more to it than just the blanket "direct mail" concept. You have to be mailing to the right people.

If you blast the same, tired old "WE BUY HOUSES" message out to hundreds of people who aren't really motivated to sell - you're going to get really frustrated and burnt out by the lack of response (and lack of motivation to sell).

I'm not sure how you're finding your data - but it'd probably be worth your while to narrow down your lists of recipients in a very intentional way (and there are a lot of creative ways to do this). If you target the right audience, you're likely to get a MUCH stronger response rate.

Kyle J. · Answer

Maybe try focusing more on a specific target audience?  Like absentee landlords, probate, etc.  I'm no expert on wholesaling, but from all I've read on BP (and there is a lot of information here if you search for it) I don't know how likely your car signs and only 180 letters are to actually work.  Seems like you'd need to send WAY more letters out than that, and on a consistent basis.

Michael Wagner · Answer

Here's another vote for direct mail.  I'm not actively buying residential properties anymore but about 2 years ago I used my counties website to generate a list of out of state owners who were also behind on taxes.  Mailed out the postcards 1 time and I kid you not when I tell you I get calls to this day about them.  No clue why someone holds onto my postcard for 2 years but they do.  Did buy one property from the mailing.  Also a big fan of craigslist--be sure to refresh ad frequently!

Dean Letfus · Answer

Also don;t forget the free sources. I use Ebay and Craigslist and get at least 5 good leads a week!!  I have never posted 1 letter out ever.

Rick H. · Answer

Everyone new to real estate investing who actually takes the effort to mail, makes the same basic mistakes.  However, direct mail can be very effective in reaching people who are otherwise hard to reach.

If you think about it, everything from door knocking to direct mail to radio and TV broadcasts and online market efforts are merely different media.

The reason most of us started door knocking is because we didn't know what else to do.  However, I live in SoCal and with 10MM + households, that's a Los of doors.  And I'm basically lazy.

So, don't give up.  The solution is to learn how to be a better marketer in order to pick better targets, refine your list(s), focus your campaigns and manage your Dealflow.

Dev Horn · Answer

Nicasio T. -hang in there, man, you're doing many of the right things.  But as others said, you need to have a target audience that is:
1) Qualified - the right people 
2) MUCH Larger - many people target 1000, 2500, 3000 people in their direct mail campaigns

Listsource is good - it's the website for CoreLogic and they actually get data from local sources (courthouses, etc.).

Nicasio T. · Answer

Thanks for the advice everyone! @Blair I will give listsource a try!

Blair Halver · Answer

Hey Nicasio,
Glad you posted.  I'll agree with Seth Williams above - direct mail has always been the best way I've generated leads.  I would start there if you have the money to invest.

If you find the right mix of Market, Message, and Medium (the 3 M's, from Dan Kennedy), you can get a near-immediate response and have seller leads coming in to your business within a few days.

Check out listsource dot com for a good mailing list.  I've had success with them.

Blair

Eric Hettena · Answer

Marketing doesn't always have immediate results.  It takes time to build brand awareness.  Especially related to direct mail marketing statistically it takes multiple mailings to the same recipient to get a call back.  It doesn't happen always after the first piece you mail.  60 people really isn't that many though.  Try to send to more people if you have the resources.

Of the 60 people your mailing to what types of leads are those?
What does your letter say that your mailing?  
Have you mailed to the same recipients multiple times, or just once?
What does your sign look like on your car?
When you drive for dollars are you looking for vacant homes and mailing a letter to them?  What are you looking for when driving around?

Am i doing something wrong?

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