Would You Do Direct Mail Marketing?

Question

If you were a buy and hold investor (not interested in being a wholesaler or flipper) who is looking to buy 2 rental properties over the next year, would you invest time and money in a direct mail marketing campaign (post cards) for deals or would you go different/cheaper routes (driving for dollars, knocking on doors, etc.)  to achieve this goal?

Shaun Reilly · Answer

@Daren H.

I think that with that particular goal you might be best served trying to find a top notch agent that has a lot of experience with income properties similar to some of the advice that @Adam Greene and @Michael Quarles suggested.

If you want to increase then putting a lot of effort into things like direct mail will probably serve you better.

Michael Quarles · Answer

hello Daren.

For a buy and hold and a two a year model especially if you didn't want much equity and were just looking for cash on cash return then I certainly would not spend the effort on direct mail.

A great top producing real estate professional will do the work and cover the upfront marketing costs which allows you to finance your marketing dollar in the long run.

Aaron Mazzrillo · Answer

With the time involved and price of gas, I'd bet a shiny nickel you'd get a deal quicker and cheaper sending mail.

Daren H. · Answer

Thanks to all who responded!!

Brian K. · Answer

@Daren H. I think your time would be better severed by having a realtor, wholesaler, and other investors help you find your properties. Talk to everybody and anybody letting them know your looking, see what kind of reaction you can get. Also, checkout your local investment clubs

But on the other hand if you have time and money it might be worth looking into, I don't know what your market is like there or how big of an area your covering.

That's my dollars worth.

Tom Bujnowski · Answer

I'm a big proponent in direct mail.  In my experience there is not one "best" way.  You have to test your message.  Almost ALL of my deals come from direct mail.

Troy Fisher · Answer

Connections at the REIA meetings are going to be a great way to do this (other than already evangelized Agent)  A flipper that knows what you are looking for might pick something up and do a quick flip to you, a wholesaler (if there are any operating in your area...), another Landlord who needs the cash for another deal, or to 1031E...

You definitely don't need a marketing engine to pick up 2 buy and holds a year.

Adam Greene · Answer

I find it amazing how as soon as I hit post then try to go to sleep how many different ideas come to mind... I should have said..

While I still stand by my first post, I should add a little additional info. I get notifications every time someone uses the word marketing, because I'm trying to learn more about effectively using direct mail and  any other form of marketing.

I know how to be friendly and would say most err all my wins have been because someone liked me...  My biggest failure was pretty much all me :)

I know deals are made every day using either method.  If you direct mail and get lots of leads you can always dump them on another wholesaler in your area and make some extra cash to possibly turn your two to four.

Adam Greene · Answer

First there are so many "Correct" ways to go about being an investor that I start with the disclaimer that this is just my opinion. If I was looking to pick up about two properties a year, I would focus on meeting people at REIA groups not direct mail, coupled with driving for dollars and getting to know a good agent in my area and letting that person know exactly what I was looking for ie: SFR/Multi specific neighborhoods, price, expected ROI, and cash flow. Then see what comes of it..  I think in your situation you'll find a much better return than direct mail.