Direct Mail Help

[Jim Tiernan]

Hey BP, I'm looking for a little direct mail help. I am a long-term buy-and-hold guy with 3 SFR so far. I don't do flips. I'm looking to get a direct mail campaign going (using listsource), looking for Non-owner occupied free and clear properties (Larry Harbolt style) starting here in Denver. I'm not trying to steal anyone's system so if you don't want to share that's ok. But any help would be GREATLY appreciated. You can email me directly at [email protected] if you prefer, or share with all on BP.

I need some basic guidance from A to Z.

Business cards - I was going to get a new google voice number.

- Is there a better response rate with a local area code vs. an 800 number?

I ask because I'm also eventually interested in Dallas, Phoenix and Las Vegas.

- Should I have "Real estate investor" on the card? Or something

like "Buyer of Long-Term Rental Properties"?. I imagine "investor" has a bit of a negative connotation to some owners.

Direct Mail Services - Once I get leads from listsource, I can import that list to http://www.yellowletters.com/ or wherever? Are there better direct mail companies?

I was thinking a white letter with a 3-year calendar on the back so maybe it stays on the refrigerator for a while.

-If I only need to talk to one seller a week until I get the hang of it (I have a full time job), how many would you recommend sending out a week?

- Once I determine how many to send out a week, can that be automated?

As in can I just include a bunch of zip codes and let "the system" do the rest?

Lead Tracking - Is there an easy tool to track when first letter was sent, second letter, contact notes etc?

Dang, that's a lot of questions.

Thanks and Great Deals To All !

Jim

[Matthew Rutledge]

I have nothing useful to add, but I am interested in learning a bit about this as well. Bonus that it may benefit my home market.

[Brian L.]

Dang @Jim Tiernan

[Christina R.]

@Jim Tiernan

- Hi Jim! Use the search feature and type in some of your questions above, there are tons of posts about Direct Mail. The only useful advice I could state here beyond what is already on the site is that DM is never a "one and done." So determine what you can afford to effectively lose, if you never get a deal out of it, for 6 months to 1 year and decide if you can use the combined/free knowledge on this website about DM or pay one of the DM superstars on this website, like @Jerry Puckett and @Michael Quarles and others to do your campaign. I am just beginning my first campaign myself. Good luck!

[Dev Horn]

I'll help with one of your questions - we offer both Toll-Free and Local Number options. Given the choice, they call the local number more than 90% of the time. We still see a lot of value in the toll-free option - it makes you look more credible in the marketplace and offers a "no-cost" calling option for out-of-state owners, older owners with landline phones, etc.

[Jim Tiernan]

thanks for the replies folks. @Brian L., do you attend any of the ICOR/IRROC etc meetings around town? We should meet up at one of those.

Jim

[Dean Meier]

Jim: I can only give you my anecdotal answers and how I do it here in Minneapolis.  For non owner occupied single families in this area it seems in the second tier burbs there are between 100 - 150 names that list source gives me.  I mail to those 150 about every three weeks.  My intention was to do every week but it's tough.  I've created a hand writing font from the net to address the envelope.  I've terrible hand writing so the front of the envelop looks authentic.  I've been using a spider man stamp.  Some people say use the flag.  Spider man seems to get them open.  My response is all over the place.  last one I did was 2%.  One before was 12%.  I think you should be able to get 1 deal out of around 100 mailers.  That's my hope.  Could be unrealistic but it's working so far.  The mailer thing is a bit new to me so we'll see if my spread sheet changes.  Oh, I use a simple spread sheet to tract responses.  I always answer the phone with my local number.  ALL of the responses are from people who are not motivated.  They have renters and are happy to wait out their price.  It seems as though you need to be diligent and keep hitting that 1 in 100 that will take an offer that works for both of you. 

As a side note, I've run in to a couple of people that have some deep pockets by mailing these letters.  Now I'm forming relationships with them and lending money on projects together.  Squeeze every dollar's worth out of  the letter .  There's another answer to your question I think.  It costs around $1 per letter if you do them yourself.  Fifty cents more if I pay someone to fold and stuff etc. 

[Jim Tiernan]

thanks @Dean Meier , I'm on my third round of letters - about 475 names on the list - and have talked to about 60 people. SLOWLY getting more comfortable on the phone, and have made a couple offers so far. I think most folks are just curious so I try not to spend too much time n the non motivated people.

[Walt Payne]

@Jim Tiernan I'll just throw out a quick warning ... several posts here on BP have mentioned this, and I have read it several times elsewhere. Google voice is being phased out, and there is no clear indication about whether the numbers will remain available. I would hesitate to build a marketing campaign on a Google voice phone number. Just my opinion. 

[Dean Meier]

@Jim Tiernan

Your response rate sounds like it's similar.  Are you finding that most people who are calling have very little motivation?  The last place I bought from the free and clear letters had sellers that were tired of owning the place but they had a portfolio of around 8 houses.  They just wanted to scale down a little and keep the monthly incoming rolling instead of taking cash.  Every other person to whom I speak needs to be educated on that idea.  They still seem to think it's better to pay the taxes and take the cash.  Has that been your experience?  I'm considering adding no equity non occupied and chasing subject to deals.  At 100 owners per city, I'm running out of name to which I can mail.

[George P.]

Originally posted by @Walt Payne:

@Jim Tiernan I'll just throw out a quick warning ... several posts here on BP have mentioned this, and I have read it several times elsewhere. Google voice is being phased out, and there is no clear indication about whether the numbers will remain available. I would hesitate to build a marketing campaign on a Google voice phone number. Just my opinion. 

[Jim Tiernan]

thanks @George P.    I did get a local RingCentral number for my marketing in Chicago. For $5 a month, I will probably just get a local RingCentral number for each market I mail to.

[George P.]

Originally posted by @Jim Tiernan:

thanks @George P.    I did get a local RingCentral number for my marketing in Chicago. For $5 a month, I will probably just get a local RingCentral number for each market I mail to.

 i just looked... i think that was just a rumor (expectations after it merged with Hangouts). i'd be SOL if it was eliminated and i couldn't keep my number.

[Jim Tiernan]

@Dean Meier I'd say most everyone falls into one of these categories: 1) annoyed/angry and want off the list 2) curious but not motivated 3) possible sellers but want cash. I need to explain to them the benefits of category 4) seller financing.

[Chip Chronister]

I use a ringcentral number for my stuff just because I can track the numbers easily, and you can sort them out very easily, and I put a number  on the end of my number so when they call a sign, or mail I know if it is a buyer, seller, or if it comes from a mailer.

[Michael Quarles]

@Jim Tiernan 

- Is there a better response rate with a local area code vs. an 800 number? 

Local wins... Although if a vanity number then I would use it only as an advertising mechanism not as a call this number. Example 1-877-WeBuyHouses on a Postcard, Professional Letter or ZipLetter is fine however also include the local number as the number to call. Using the vanity will afford you piggyback credibility.

I ask because I'm also eventually interested in Dallas, Phoenix and Las Vegas.

Just grab local numbers and have them forward to the same VOIP or landline.

- Should I have "Real estate investor" on the card? Or something

I like making the statement I Buy Houses, even We Buy Houses and leave it at that. Too many investors get caught up in titles and sellers dont care about titles.

Direct Mail Services - Once I get leads from listsource, I can import that list tohttp://www.yellowletters.com/ or wherever? Are there better direct mail companies?

I think my baby is the cutest baby in the class.

I was thinking a white letter with a 3-year calendar on the back so maybe it stays on the refrigerator for a while.

NO.... If a frig item make it small so it doesnt hide the baby pictures. Besides there is a calendar on every cell phone.

-If I only need to talk to one seller a week until I get the hang of it (I have a full time job), how many would you recommend sending out a week?

Depends on the letter type... Instead of you talking to everyone let your mail piece filter for you and drop out the motivated seller. 

- Once I determine how many to send out a week, can that be automated?

Absolutely.... Automating mail is very easy.

As in can I just include a bunch of zip codes and let "the system" do the rest?

Great point

Lead Tracking - Is there an easy tool to track when first letter was sent, second letter, contact notes etc?

Yes 

[Walt Payne]

@Michael Quarles You are always a great resource on marketing, but I think that although you answered the question, that last answer was a bit of a tease. I'm curious, is there a system you would recommend? I have some pretty decent CSV tools that I have developed that I use but I don't know how they would scale. So far I have not taken the time to develop a real database system and to be honest I would rather not reinvent the wheel. 

[Michael Quarles]

Check out an old fidelity company product which they sold however still available and although a product meant for agents it works great for investors as well.  http://agentoffice.com

[Jim Tiernan]

thanks @Michael Quarles And others

I have @Jerry Puckett running my letter campaign and I will keep at it!