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Updated over 8 years ago on . Most recent reply
![Frank Chirkinian's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/151471/1621419676-avatar-floridafrank.jpg?twic=v1/output=image/cover=128x128&v=2)
Direct mail 1 year later
Hi all, this is my first post on BP. I've been a long time lurker and my new year's resolution was to start posting on BP and actively participating in the discussion.
By way of an introduction, while new here on BP I've been an investor since 2009, and since then I've had the change my real estate strategies three times including: short sale buy/sell to short sale rehab to buying directly from sellers and rehabbing and finally wholesaling from sellers. I guess I've completed about 45 total deals in the past 4 plus years.
Since I wanted to make a contribution to BP community, I thought rather than have my first post be a fast intro I'd jump right into it, starting with one of the most favorite topics - Direct mail.
It was just over a year ago when I began to realize that the short sale business was beginning to dry up (meaning it was less investor friendly and there were now many bidders for properties where before I had been the sole bidder). So I decided to shift my strategy to dealing with sellers directly instead of with realtors (where I had been finding most of my deals). I started sending out DM and added websites to capture leads.
Now I'm in a very hot market here in South Florida, so my results are going differ greatly from other markets (except for maybe San Antonio and So Cal).
I'd also like to post my DM results for the past year here, but being new (and not 12 years only) I can't figure it out. Maybe someone has some suggestion on how I can post it and I'll be happy to show you the evolution.
So without the benefit of showing you the evolution of my mailing over time with number of letters mailed, response rates and closed deals, suffice it to say since Jan 2013, our response rates have been dropping consistently and our piece sent have increase substantially. I went from a response rate of almost 10% in Jan 2013 with 634 letter sent and two closed deals to where we are today, which is increasing our budget to 2500 letters monthly and a response rate of about 3% and only two closed deal in the past 6 months (though our increase in mailing mainly took place recently in Nov 2013). Since November, we've employed the DM campaign method with repeat letters (variable content of course) to the same list over a six month period. Up till then, we had been mailing once to an absentee owner. We'll see how this campaign method pans out.
As for that one year performance, it'd be much easier to show everyone the spreadsheet, so if someone can let me know how to post an excel file, I'd be happy to. I guess the upshot of this post is to affirm the advice of Jerry Puckett and Michael Quarles. If you don't have a funds to do this consistently over time and expect results from your first mailing, you're wasting you money. I've spent about $18,000 in DM this year with 6 closed deals (the lightest of all my years) resulting in about $80k in net. Not what I was expecting.
In my opinion, while DM to absentee owns is the right strategy, it's also one for those with deep enough pockets to out-mail the next guy or those able to strategically target a list of motivated sellers, at least in my market.
DM will always be part of my marketing, but it needs to evolve like other parts of my business. You need to be capable of changing gears from time to time. Maybe that time is now.
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This is a very interesting tread and I would like to share something that many people unfortunately forget: to be successful in any type of marketing, you need to be a little different and persistent.
We also have seen our response rates drop dramatically because everyone and his brother are using DM. Not only is everyone doing it, everyone is using the same wording and the same type of letter, because they blindly follow "gurus".
There is nothing wrong with being yourself in your letters. It makes you different. Many times, we have phone calls of people telling us that they wanted to talk to us because our letter is different from the dozens of other letters they receive. One person even said that her attorney told her that she could go ahead and call us because we are "real people" LOL.
It is also a lot of work. I insist on having a handwritten signature on each letter, a handwritten address on each envelope, a real specialty stamp etc. Of course we outsource that, otherwise we would spend our days writing envelopes. You'll find tons of moms or retirees who want to make a few bucks from home.
That was for the "different" in your DM marketing.
Now let's go to the "persistent". Here is a picture that is worth a thousand words. You'll understand immediately
Now, even if you think that you are buying houses, think twice: you are a sales person! You have to sell the idea to the owner that they have to sell their house to you.
Our profession has become tougher with all the competition, but it's so much fun!