Direct Mail : Best lead source? Distressed homes or lists?

Question

Hi everyone,

I'm on my 5th week of a tiny direct mail campaign here in Phoenix, AZ. I've mailed 250 people x5 weeks yellow letters. They were distressed houses that I found driving around.

I've gotten only 2 inquiries about selling thus far. What are your 2 cents, everyone?

1. Is it just that I have to continue mailing beyond 8 weeks?

2. Anyone having success from mailing your distressed homes? Have you found it more efficient to use your local title company for a mailing list? Are they the same?

Thai Le · Answer

Well, I had 2 people ask me to make an offer. The rest stated they were not interested, so it made the response rate actually 3%.

I'm turning it up to 450 postcards this next week for distressed houses and continue to follow up on them.

Rick H., you're right; they better have more going on. I'm seriously considering a paid list or using the local title company to help me sort my list better...

Any other thoughts?

Rick H. · Answer

It's starts with a good list.

Just because you found a property in distressed condition doesn't mean the owner is distressed. It is a clue, but not a certainty. All that's certain is that they don't take care of their property very well.

A list of 250 is not a small list, despite what some big marketers will tell you. As a mere reference, 2-3 responses is 1%. Is that about right? I don't know.

Since you only buy one house at a time, you really ought to consider what the catalyst is to compel an owner to sell.

If the only motivatation is dependent on a feeling of guilt, all children would put away their toys and clean their rooms and all trashy neighbors would clean up their yards.

Given that neither are motivated by guilt or threat of no desert, look for motivating factors that escalate compliance. It's amazing what the fear of getting smacked on the butt can do.

Look for notices, mortgage and tax defaults,  and other threats that trigger action.

Thai Le · Answer

Yes, I realize people are spending a good amount of cash out here on DM.

@Shane FosterThese are paid lists you're using? From Listsource?

Shane Foster · Answer

Phx is a tough market. Guys are spending $300-$400 to get one lead. In that market you really need ramp up your marketing to even give yourself a shot at being successful.

As for the best list- vacant property list is my best performing list, then probate, and targeted absentee owners in a farm area.