direct mail - response rate too high

[Don Chambers]

I just started a direct mail campaign.  I sent out 1,109 postcards in 2 batches.  The first 600 hit today.  I expected about 3 calls - 1/2%.  I have gotten 23 calls - almost 4% and I could not get to all the calls.  

I sent to absentee owners with equity.  About 400 directly from listsource and 200 that are absentee with some custom equity calculations.  The next 400, which are in the mail now, are all absentee with custom equity calculations.  I spent about $2,000 on the lists and the mailings.  My intent was to mail to this list every month for at least a year.

Today, I have seen 7 properties, talked to 2 more people, and I have 14 missed calls where I could not get in touch with the person.  Of the 9 people I talked to (including the 7 I saw) they all want to sell but near market value.   Some need extensive repairs so they will discount a little, but not enough for a deal.  I know I'll need to see about 20 properties to get a deal.  I also know from past experience that some of these may become deals on follow up.

1. Should my mailing be more direct?  It has the hand writing font and just says I am interested in buying the house.  Seems like I am tricking them into calling expecting to get market value.  Maybe I should explain more and only target those willing to give up equity to sell fast or avoid doing repairs.  That seems more ethical and saves me time, but I miss out on the deals I get later from follow-up.
2. How do you qualify the seller on the initial call?  Once I confirm they have equity I try to meet them, establish rapport, and make an offer.  I hate to cut out this rapport step but I am not sure how much it helps.  I would never give up equity because of rapport, only because I had to for some other reason.
3. I would like to hire someone to do this but I am not sure of the process.  I don't know the best way to pay them or what skillset I am looking for.  I would like a profit split on flips and a flat fee if I buy a rental.  They need to be vested in the deal and not just trying to get it to close and get paid.  How do others find and pay acquisition people?

I am trying to build a funnel of leads but I need a systematic way to work them.  I was trying to grow a business, but I seem to have created another job.  It's probably best if I am not in the process at all.  The leads will be wasted if I remain the bottleneck.