sending letters and postcards, and getting little response?

Question

I get about 8 to 10 cards every week, asking to buy my house.  I notice that they ALL have the same message.

1. will buy it in any condition, no need to make repairs.

2. can close in 2 weeks

3. cash offer!

This could get people that are broke to bite, but it doesn't appeal to many of us.  I have properties in nice condition and I am not in financial difficulty.  Who cares if you can close in 2 weeks?

What message could you put in a letter that might get the attention of most of us? I think that it's time to talk to some potential buyers and ask them what might get them to sell. I would love to hear your answers. It's time to change your approach.

I have some ideas, but I want to hear from the letter and card senders, please.

Zackary C Dunn · Answer

My first deal was from postcards so I have definitely seen they work. As with anything in marketing the "Rule of 7 applies." On average a client has to see you 7 times before choosing to buy a product or service.

I dont think there is any wording that would get someone such as yourself to sell as you are not the target audience for most investors. The best return is to always go with a pain point financial (foreclosure, bankruptcy, liens), change in familial status (empty nester, new baby, divorce), vacant property, etc.

Another less motivated group which you may be in would be tired landlords. This group is obviously less motivated and would need a different message to respond. I've had better luck with this group by building actual relationships with them.

I would also add I always to get more marketing touches. Due to the cost of direct mail I add in door knocking, cold calling, and digital marketing. I'm currently running Facebook ads directly to my mailing/ call lists bypassing the need for the special ad category. I'm averaging a cost of 12 cents a touch this way and hitting a frequency of 9+ a month.

Chris Seveney · Answer

@James Barnhart

You need to work backwards in this situation.

1. What problem are you looking to solve?

2. Who are you targeting (assuming people who may have that problem)

3. Why you over someone else? What message are you sending

It will take 7-10 touches before you get someone to reach out and I disagree that the response is 10%, response rates in this are typically around 1%. You will need to spend $1,000’s / month. Sending 100 or 1,000 letters x 7 months may lead to 10 leads and maybe close one of those. If you ask any of the larger groups they are spending significant cash.

We don’t wholesale but currently for our business, we are doing a campaign right now and spending over $50k/mo. But it is paying off big time.

Lindsey Johnson · Answer

@Nathan Williams

That is all assuming that you are trying to dupe someone into working with you. Sounds like a terrible business model. There are legitimate circumstances where quick cash is absolutely the best course of action. Foreclosure, tax delinquency, inheritance with liens attached, big capital expenditures needed, etc. I would target this audience and provide real value, not try to find an uncle to "finesse".

Nathan Williams · Answer

I think the target audience is more important than the message.  For someone lilke me and I assume most/all on bigger pockets, there's no words you can use in a letter or phone call to convince me to to sell any of my properties in some wholesaler deal.  And if someone was quoting me some price that is well above market value I'd be instantly suspicious of whats the catch.  However earlier this year my uncle somehow got finessed into selling his home for like 25% below market.

So yeah the key is finding someone like my uncle and not someone like me.

Mason Liu · Answer

Hey James,

I send around 2000-3000 handwritten letters in one specific market every month.

I think a couple of things matter. One is that you have a working website on the letter. Lots of potential sellers want to know that you are legit, and in today's day and age a working website goes a long way in providing credibility.

Next is that the letter to standout and not be in just a generic white envelope. I think those have a larger probability of never being opened.

I agree with @Chris Seveney that it will often take multiple touches before a seller is willing to sell you, so just because you've hit them once with a mailer doesn't mean you stop if they do not respond. This is why volume and consistency is important in this type of marketing.

Hope this helps!

James Barnhart · Answer

I am trying to solve the "problem" for some prospective buyers and sellers.  We are mostly retired now from real estate investing and are enjoying that.

So when my wife and I receive those letter, cards, texts, from someone wanting to buy a property in this hot market, we see that none of the "advantages" of selling have any appeal.  (don't need to get the house in shape, quick closing for cash, etc.)   My point is that IF some of the ads you put out, had a different appeal to sellers, you would NOT just be like a thousand other buyers saying the same thing. Do you ONLY want fixer uppers?

What makes your ads any different from all of those other RE guys looking to take advantage of sellers?  Nothing!

Many people are not in financial difficulty, and their properties are not run down eyesores.  Why would they consider you?  What would you want if you were them?  A check every month instead of one big one?  That would interest a lot of folks. Something else?  People get solicitations almost daily.  You could get more success if you don't put everybody in the same boat.

Lindsey Johnson · Answer

@Eliott Elias I see this strategy working in combination with cold calling and door knocking. Do you have any other strategy you would add to up conversion rate?

Eliott Elias · Answer

This type of marketing gets a 10% call back rate

sending letters and postcards, and getting little response?

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