Starting the Snowball ~ Diary of a Direct Mail Campaign

[Joshua Martin]

Hey gang,

  I've seen a lot of these posts where people aspire to document their progress on a campaign or flip or deal, and then all of a sudden they disappear off the site and leave you wondering what the hell happened. It is my goal to counter that tendency and document a somewhat small direct mail campaign for the next six months with updates as they seem warranted, whatever happens.

 After so many months of reading, studying, and flip flopping on where to start, I decided wholesaling would be my jumping off point just to build some capital in order to buy and hold and hopefully rehab properties. 

 And having listened to so many podcasts, read so many blogs, and having come to understand that almost all of the successful people (with a few exceptions) do their own marketing, this is where I decided to put my accumulated wealth of $3,500 (which took me about 4-5 months to save - I don't make a lot).

 So where's it going? Well, I have three lists, basically.

1.) 500 absentee owners 50% or more equity, last recording date six years or more, 1-4 family, in or out of state.

2.) 500 owner occupants, 50% or more equity, SFRs, last recording date six years or more, age 55+. (This is more or less the list @Michael Quarles is awesome, and got me to take the leap. Thanks BP. You guys are the best.

  Follow or comment if you like. Though there really aren't any direct questions, experienced marketing advice is always appreciated.

Best,

JTM

[Joshua Martin]

Hey guys. 

Thanks for the nudge @Jordan Scott, I was just thinking I needed to get on here.

First two weeks marketing results:

Probate: Sent 80 letters, 2 responses (2.5%), offer written on one, waiting for response. I partnered with the same wholesaler I mentioned previously on this one, as they're showing me how they do everything which is quite valuable in my estimation. Fingers crossed, should know in a day or two once seller has met with attorney (he has a couple offers on the property).

Bandit Signs: I put out twenty last week, several calls. Mostly trash leads, but as mentioned previously, we did go see one where the seller radically downplayed the condition of the property. Rehab was going to be more than the house. So much for 'just needs a roof.'

Postcards: Sent a thousand, and, like a good amateur, I've somewhat lost track of the response rate as I'm trying to build some kind of better tracking system around leads and follow up, etc. I think at least 10, so a 1% response, at about $100 a lead. Mostly trash, to be honest, although three are certainly worth follow ups and could become motivated with a little time. 

Tax Foreclosures: I went through the pending city foreclosures for the last two terms of the year, and probably sent a cumulative 50 letters (lots and lots of trash leads, or back tax balances higher than the value of the property), and I got one response yesterday. A messy lead, for sure, but I'm trying to set up a walk through with a fellow investor who is interested. Short sale, back tax, vacant, squatters, copper ripped out, etc. -- still, this guy is interested, so I'm just bird doggin this one because it's trash for wholesale.

Conclusions: we're halfway through the month so I may get more calls yet, but already looking ahead for better lead capture next month. (At first I was just doing my mental 'seller lead sheet' on whatever scrap paper I had available, needless to say, this is a poor system. I've since got a simple 3 ring binder and have the seller lead sheets organized according to month. I still need to get podio working to some degree, because the intention is to then log the leads there and mark down for follow ups. On this point, while I wouldn't have spent weeks setting up a good lead capture system, I'd suggest having some sort of plan for this part.

The calls themselves have been easy. There was a good bit of fear about talking to sellers, etc., but after doing it about 20-25 times that's all gone. Still learning to be more effective, obviously, and learning to ask the key questions about motivation, condition, and price that qualify the lead, but I get a bit better every time, and am quickly learning property values and wholesale prices in different areas of the city. The idea of a 'script' simply doesn't work, as a far as I can tell, because every conversation is just so different.

Also trying to get this traditional vein going of working as an agent, and I've been working with an investor trying to scout good deals. Between the two, my time has been thin, but I'm just going till something starts clicking. You're either earning or learning, I guess.

Either way, great exposure, learning tons, and there's still a chance I'll close a deal this month.

Best,

JTM