Dallas, TX · Member since 2013 · 311 posts · 94 votes
So lets say I want to wholesale and I buy a list from Listsource and plan to send out yellow letters.
If I market to say, the Dallas area, there are a ton of other wholesalers who I'm sure have marketed to the same potential leads (absentee owners, etc)
So why would a potential lead respond to my marketing over someone else's?
Haven't these same absentee owners been hit with a dozen other yellow letters from other wholesalers?
@Joe Butcher I often talk with sellers who will say, "I've received a lot of letters from different companies but for some reason I decided to call you."
I can't stress enough the importance of a good marketing letter. Great wholesalers are great marketers and they've tested their campaigns and perfected them. Over the years the letter that I use has changed many times with simply removing or adding certain sentences.
Remember, it's not about how many calls you receive, it's about the quality of the calls. I could easily get an extremely high response rate but my goal is to get solid leads without wasting a ton of time with the wrong type of sellers.
So lets say I want to wholesale and I buy a list from Listsource and plan to send out yellow letters.
If I market to say, the Dallas area, there are a ton of other wholesalers who I'm sure have marketed to the same potential leads (absentee owners, etc)
So why would a potential lead respond to my marketing over someone else's?
Haven't these same absentee owners been hit with a dozen other yellow letters from other wholesalers?
Yes, however the key is consistency. By the 6 month mark 80% of investors and wholesalers alike will have stopped marketing to the lead. By 8 months the vast majority of individuals have stopped mailing to the prospect completely. You want to be the last one mailing the prospect.
To answer "why me", its your branding and your message. For instance if your big name brand versus a local family owned business, and this will appeal to different individuals. And also how regularly you mail them, so when they do have that trigger event they remember your mailer and give you a call.
This is a great video that I highly recommend if you would like to learn more.
You have probably heard this before but it is a numbers game. You send out a lot of marketing and a certain percentage will respond and be a deal. You don't really give a damn why they choose you. If they get 10 letters there is a 1 in 10 chance you get the call.
Now on a more realistic note, most do not get lots of letters. They may get a few. The few they get the sender most likely will not even return the call. I know because I get those letters myself. When I call them back I never get a live person answer and usually don't get a return call.
There is also the issue of timing. Did those other letters get there when they were considering selling? - Ned
You can certainly come up with some amazing copy to put in your letters and other mail pieces that could help you stick out.
But I think it is more of luck of the draw. You send the letter at the right time, or maybe you are the only one they get, or as Ned said you are the only one that picks up the phone or at least called back quickly, maybe they got a bunch early on and you are the only one that stuck with it to send that 7th letter when they finally were ready to make a move.
But again as Ned said who cares? As long as they call. If you send enough pieces out you should get some level of contact.
@Joe Butcher I often talk with sellers who will say, "I've received a lot of letters from different companies but for some reason I decided to call you."
I can't stress enough the importance of a good marketing letter. Great wholesalers are great marketers and they've tested their campaigns and perfected them. Over the years the letter that I use has changed many times with simply removing or adding certain sentences.
Remember, it's not about how many calls you receive, it's about the quality of the calls. I could easily get an extremely high response rate but my goal is to get solid leads without wasting a ton of time with the wrong type of sellers.
Remember, it's not about how many calls you receive, it's about the quality of the calls. I could easily get an extremely high response rate but my goal is to get solid leads without wasting a ton of time with the wrong type of sellers.
Bingo. Everyone put that on your fridge and office desk and read it daily.
Just as a comment here, I own quite a bit of rental property in my target market (houses and multi's), even though I live two hours away outside of the area, so I should show up on absentee owner listings, plus have 100% equity on most. I have gotten maybe 3 total pieces of mail from investors/wholesalers in the last 3 years, and never once a repeat mailing.
So don't assume the owner has received 10 other mailings, though I'm sure that more investors turns to direct mail in highly competitive markets (like Dallas). I'm curious if other high-equity absentee-owner investors here on BP are actually getting mailed to.
Just as a comment here, I own quite a bit of rental property in my target market (houses and multi's), even though I live two hours away outside of the area, so I should show up on absentee owner listings, plus have 100% equity on most. I have gotten maybe 3 total pieces of mail from investors/wholesalers in the last 3 years, and never once a repeat mailing.
So don't assume the owner has received 10 other mailings, though I'm sure that more investors turns to direct mail in highly competitive markets (like Dallas). I'm curious if other high-equity absentee-owner investors here on BP are actually getting mailed to.
I've thought about that too in the past. I have never gotten a mail piece even though I am an absentee owner. Some are owned by entities and seems like people mail less to those, some of the places are in state which is a lesser draw, the mailing address for ones in entities or in my name is a PO Box which I think people also cut out.
I am in 4 counties in 2 states at this point so even if one happened to be a low activity place hard to imagine all 4 would be of no intersest.
The seller only interested in how much money you are putting in their pocket. Let's say your yellow letters say Mr. Homeowner if you let me put your home under contact, I will put $1000 in escrow non refunded, and I have buyers. Now your yellows letters will get their attention.
Just as a comment here, I own quite a bit of rental property in my target market (houses and multi's), even though I live two hours away outside of the area, so I should show up on absentee owner listings, plus have 100% equity on most. I have gotten maybe 3 total pieces of mail from investors/wholesalers in the last 3 years, and never once a repeat mailing.
So don't assume the owner has received 10 other mailings, though I'm sure that more investors turns to direct mail in highly competitive markets (like Dallas). I'm curious if other high-equity absentee-owner investors here on BP are actually getting mailed to.
I cull my lists for owners like you. Do you own as an individual or as an LLC or corp? Even if you own in your name or trust name: if you own multiple props and/or if you are actively buying.....then you won't get a letter from me. You're not a likely seller and I don't want you to have a copy of my marketing. :)
I get a lot of mailings. I was actually thinking of selling so I called one buyer whose letter appealled to me- but I can't for the life of me remember why! (I will say that it was a real letter on nice paper, aimed at investors, not a yellow postcard) he was actually looking for a different type of property than mine but I ended up using his partner as my selling agent when I did finally sell. And the guy was great, really professional actually. so I did end up contributing a bit to his family income for the year. I think that, as other have said, it's a crapshoot- the way you present yourself will resonate with some, not with others
The seller only interested in how much money you are putting in their pocket. Let's say your yellow letters say Mr. Homeowner if you let me put your home under contact, I will put $1000 in escrow non refunded, and I have buyers. Now your yellows letters will get their attention.
Strongly disagree. I beat people at houses all the time and sometimes my offer is not the highest. However, I am very good at building a relationship with people and they trust me. Highest dollar is not always their first and foremost concern.
You miss the point. 99% of wholesalers don't offer the seller anything, but once they get the home under contract, they sell the contract over and over. My point be honest with the seller and say I am selling my contact not your home.