Best Marketing Strategies for HIGH response rate????

Question

Hello Fellow BP'ers,

I am struggling to find an affordable method of advertising to build my Buyers List and advertising to sellers. Bandit signs are illegal, but smaller signs are not, in some areas. I have yet to receive any phone calls. I just need some stellar marketing ideas to attract both buyers and sellers! THANK YOU in advance:)

Mark Gagner · Answer

For buyers, go to your local auctions and let every buyer there know that you find discounted properties for investors. I assure you they will give you their contact info. Auction.com also does auctions and good source of leads. Join and go to every REIA and real estate related meetup in your area. Have business cards and tell people you are looking for deals that you will wholesale. You will likely be the most popular person in the room. Craigslist, Facebook and LinkedIn are all places you will easily find buyers. Call bandit signs for buyers. Google cash buyers + city and you will find all types of cash buyers. Your local title co can give you a list of all the cash buyers in your geographic areas that have closed within a certain time period. This information can also be looked up by any real estate agent you befriend (buy them lunch and promise them your next listing).

For sellers, google and then call all the REO agents and short sale specialists in your area. Network, network, network, and make sure you FOLLOW-UP. Buy the wholesalers you meet coffee or lunch and follow-up every 2-3 weeks. They give their deals to the people that are top of mind, responsive and easy to do business with. Bandit signs work too. If you are going to do direct mail you have to be committed with a budget to do it every month. 2-3 times is not going to assure you success. Every month!

For sellers, google and then call all the REO agents and short sale specialists in your area. Network, network, network, and make sure you FOLLOW-UP.  Buy the wholesalers you meet coffee or lunch and follow-up every 2-3 weeks.  They give their deals to the people that are top of mind, responsive and easy to do business with.  Bandit signs work too. If you are going to do direct mail you have to be committed with a budget to do it every month.  2-3 times is not going to assure you success.  Every month!

Jared Wilson · Answer

Hey Nick, what kind of direct mail are you doing.  How many letters/post cards is it taking you to buy a house?

Jared Wilson · Answer

It is currently taking me between 150-250 18x24 size signs to buy a house.

Jared Wilson · Answer

I have been advertising with bandit signs for years now.  They work.

The whole illegal thing is b.s. as well.  Every city had local ordinances that say you cant put out bandit signs, however those ordinances are in voilation of our right to free speech.

I have been fined a couple of times and always dealt with it easily.

In fact, the last time I was fined was by the city of mabank, texas.  The sign officer fined me for like $2000 or something like that.

So I went in and saw the judge that day.  I was sitting in her office and politely explained how I could simply pay my attorney and all this will go away because of the first amendment.   However, that would cost me $1500.

She agreed and then I said I would rather just avoid paying that much. I then negotiated it down to $500 total at $50 month for the next 10 months.

If that isn't a judge acknowledging defeat over a b.s. local ordinance I don't know what is.

So after having thousands and thousands of signs go out, that fine and one other one have been my only cost.

Signs work and I'm thankful the citys keep the intersections clear for me.  They make my yellow signs pop out all the more.

Bill S. · Answer

@Henrietta Mateaki the best way to build a buyers list is to get a screaming deal and then advertise it like a mad man. You will then have your buyers list. The more deals you get the more buyers you will have.

For sellers. Nothing new under the sun and if someone tells your there is some "new" secret sauce then it's be old news in short order. Hard work and persistence is the best approach to whatever method you choose. I recommend against illegal operations like bandit signs.

Kyle Kratzer · Answer

Push up! That's advice you can do something with.

It sure the heck helped me.

Thanks brother,

Kyle

Claire Trammell · Answer

@Henrietta Mateaki I know it has been a while since the original post, and it may still seem like some of these suggestions are old hat, but if they work, why change it? I definitely like what @Bill S. had to say: "For sellers. Nothing new under the sun and if someone tells your there is some "new" secret sauce then it's be old news in short order. Hard work and persistence is the best approach to whatever method you choose." Very good point.

It may also seem like some of the methods you try don't give you the response rate you imagined and so you feel like it is a waste of time. If you are expecting to receive 50 calls with a few bandit signs for example, then it will disappoint for sure. It may be worth your while to do a bit of research to see what the average response rates may be for each method so that you have realistic expectations, and so it might give you an idea of what you may want to try.

For example, with direct mail the average response rates seem to differ with each type of marketing piece. We have found that postcards receive an average of .5% response (mostly quality calls), letters receive about 9% response rate (angry callers, curious callers, tire-kickers, quality callers, etc.), and zip letters and greeting cards see about 2% response (mostly quality calls). @Shaun Caldwell was correct that it will take a campaign to make it worth while. A single mailing won't do your list justice. Follow ups are key with direct mail.

I hope you have had some luck these past months!

Shaun Caldwell · Answer

@Henrietta Mateaki, considering joining your local REIA. There you can network with  potential partners who can bring deals to you and help you market you  own deals (other wholesalers). Second, direct mail. If you're not  willing to commit to a campaign (at least 6 months consistently) I would  hold off. Direct mail provides an engaging, dynamic, and effective way  to market to potential sellers.

Nick Mainella · Answer

I get a small trickle of leads every week from craigslist.  But, direct mail, driving for dollars are my bread and butter.

Angie Lavell · Answer

yes, I put out 20 bandit signs last week but no calls yet. How many will it take to receive some calls? Thanks!

Best Marketing Strategies for HIGH response rate????

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