When do you stop mailing?

Question

I am doing direct mail to try and get properties to flip or hold as rentals (depends on price point). I made an offer to a lady who owns her home free and clear. I offered 140K, she said she won't take less than 200K.

How would you handle future mailings?

1) take her off the mailing list

2) keep sending my standard monthly letter saying I want to buy her property (until she sells)

3) create a new category of mailers to remind her that I am still interested if we can agree on price. How often would you send this?

In other words, if I keep mailing to her, does it make sense to change the wording to acknowledge that we already spoke?

Adrien C. · Answer

I take people off my list when they call but will continue to follow up one-on-one. After viewing the house, if they are super motivated to sell but we are not close on price, I'll try to figure out if their price would be attractive to any other investors. If it is, I'll explain that the numbers don't work for me but I know investors who do more work themselves and have lower expenses and the numbers might work for them. Boom- wholesale deal with full transparency. If it still seems high and I think the house is in a condition where it would get a retail buyer listed, I'll recommend a realtor. If not or if they don't want to deal with listing, I'll add to my drip list. Likely they got letters from other investors who are giving similar offers that she'll reject. At some point the pain of holding on to it reaches it's peak and whoever follows up gets the property at $120k. I'll call in a month and follow up 2 month after that. I'm Just checking in to see how you are and if you are still looking to sell the house. The money is in the follow up. I'm closing a property today that was a first contact 6 months ago.

Ed Emmons · Answer

Turn it around if you were her what would you want? My thought would be who is this guy? I don't know him and have no relationship with him. I would consider thanking her for responding. Acknowledging that you probably aren't the buyer because you just don't have that much money. But you'll keep your ears open for someone else to buy her house if she would like. By the way have you heard any of your neighbors looking to sell their homes? Call her back in week or two with a name of a friendly realtor if you don't hear of a buyer and again ask have heard anyone since we talked last that would consider selling to me? Then repeat the process. If she gets to like you she may be worth much more as a referral them her one house. A warm referral is worth 10 times a cold call. Just my two cents.

Tim Lindstrom · Answer

Adrien S.. I will definitely start doing follow-up on contacts that I wasn't able to make a deal with, first time around. I will offer to introduce my realtor, and if they aren't interested in selling retail, or dealing with a realtor, they will go on my drip list (she will be the first one).Maybe I should try to wholesale this property. The price doesn't work for me, but maybe a more experienced investor can make it work. I won't add a lot to the price, just enough to make it worth my while. My intention with my direct mail wasn't wholesaling, but maybe it will provide another revenue stream for my purchases.

Tim Lindstrom · Answer

Ed Emmons. Thank you for your response. I didn't even think about he fact that I don't need to mail to her now, since I have her phone number. I wish I had ended with "i'll keep my ears open" to let her know I am wanting to help her. I did tell her I cannot afford to pay that much for the property at this time. I will follow-up with her in a couple weeks, and see if she is still interested in selling, and wants my realtors name. She can probably get 200K for it retail. It wouldn't work for a flip, but someone would love to live there for that price.

Tim Lindstrom · Answer

Thanks @Don Johnston, I guess I worded my initial question poorly. I didn't make the 140K offer in the letter, I Offered it to her when I visited her house (after she called me). You have me rethinking how I handled the visit. I pointed out what was wrong with her house, instead of generalizing why houses might not get top dollar. I think I need to put together some kind of package to or brochure to leave behind. Something useful for the seller, but not sales material. Just a little something with my name on it, so she remembers me.I'm aware that direct mail marketing is a long game. I intend to mail to my to my potential leads until they tell me not to, or sell there house (hopefully to me).

Don Johnston · Answer

@Tim Lindstrom In a letter writing campaign, it is a multi-letter or letter + multi-phone or email campaign. It isn't a one and done thing. It is a relationship building thing. Each letter/call/email has to have an MWR (Most Wanted Response) that the communication is focused on/geared to. Letter #1's MWR should be to get a call from the person because you are interested in the area and a house like theirs.If someone wrote you a letter stating they want to buy your house and they will give you $140K for it, what would your response be? Mine would be they are trying to scam me out of my house. At the very minimum it would put me on the defense.MWR #2 isn't to get a yes answer on your offer because you aren't going to make an offer. The MWR is to see the house to be able to give a realistic evaluation of the home. The second place MWR is to at least get referrals or get them thinking of who might be interested and to get their email so you can send them something of value..."How to get the most $$$ for your home when you sell it!"See how you are building a relationship? At the same time you can indirectly educate them on why houses in general cannot command the highest price (lack of upgrades, need of repairs, etc.). Don't "pick on" their house.You could get lucky and they will ask you what you think their house is worth on that first visit or it may take 3 or more "touches" before it is the right time to make an offer.Search this site for email campaigns or the like and search it on google.Too often we only hear that REI is a numbers game...but it is played with real people involved with real needs and wants. Like the story I have heard told about the guy who was motivated to sell but no one could get him to sell until the one buyer sat down with him and listened. What the seller was really concerned about was that his dog was taken care of because he couldn't take him with him. Done deal!A numbers game played on a relationship level.