Actionable Marketing Plan?

Question

I've searched through the blogs and forums, but I'm not finding what I'm looking for. To this point, I've only found deals through wholesalers and bank owned properties listed on the MLS. Since both of these methods have slowed down a good bit for me, I am looking to begin my own marketing campaign. I know direct mail is a great option for finding motivated sellers, but that's about all I know. Can anyone tell me exactly what criteria your building your mailing list on? I live in a low income city, so anyone finding success in a similar place would be extra helpful. Also, anyone finding any motivated sellers through social media?

Braden Smith · Answer

It really all depends on your individual situation and what kind of marketing budget you have. If you have the money to spend, things like PPC and Adwords can get some leads coming in almost instantly, but it's not cheap and it adds up quickly. SEO takes time and/or money. Other things like driving for dollars require less money, but more time. But direct mail can take time too. Stats show you'll get more responses after several mailings. Cold calling is time intensive and will be a mostly fruitless endeavor. I would say start with one thing and then build from there...I do some driving for dollars (or pay someone to do it) and use those lists as my core lists. Then I build upon that list by layering in another list in the same area, such as a high equity list and then scrubbing it for repeats. You could also add in a preforeclosure list for the same area, again scrubbing for repeats. Any particular property that shows up on more than one list, or on multiple lists, could then be added to a "super list" and those can be cold called since they are likely to be more motivated than others.

Michael Quarles · Answer

Good to meet you Austin.From a previous post.I think there are 9 areas we should concentrate on. One of them is PPC/SEO which i will always choose PPC over SEO only because I can turn that faucet on at any time and move from hot market to hot market. Much like direct mail. I can t do that with SEO.Disadvantage of PPC is equity position in the property of the caller.Here are my nine and not in any order. PPC/SEOYoutubeFacebookDirectmailTV/Infomercials COICold CallingText Marketing (see it live text House to 818181)Voice BlastThe one that most don't concentrate on and it not on the list, is follow up... Its a key to all successful businesses is follow up... Remember ever inbound call creates an average of 7 outbound calls.Building a GREAT lists is a very important step to master. Besides the general criteria there is also the marketplace demographics to concern yourself with... Feel free to reach out and I can help..Michael Quarles

Braden Smith · Answer

Hey @Austin Works... no problem! If you pull a list from Listsource or another similar site, you just need to think about who would have the motivation to sell and the ability to sell at a price that would work for an investor. For example, someone with zero equity or very little equity won't be able to sell for a price that would work for an investor. We typically need to get properties about 30% below market value so you will need to filter all leads from a source such as Listsource to those that have 30-40% or more. You could also filter for those that have owned the property for 5 to 7 years or more, and/or for those that are 50+ years old or older. A lot of it is personal preference and much of it is area specific. Just because this list or that method works in my area doesn't mean it will work in your area. You have to try a few different things out and do some split testing to learn what works best in your particular area.I don't pull absentee owner lists because in my opinion there are the most overworked lists around. Every so called guru teaches new and rookie investors to start off wholesaling and to mail absentee owners. And I know that list is really being hit hard in my area, as are tax liens and successions (probates everywhere else, called a succession in Louisiana).

Austin Works · Answer

Thank you Account Closed, this is very helpful. I've been considering utilizing some online marketing since a lot of it is lower cost, and some even free. I'm currently reaching out to landloards through Craigslist for lease options and rental property purchases.

Michael Quarles · Answer

Have you ever wanted to listen to a live seller call? Here are two... One is free an clear and we buy it at a 50k spread 80:130 the other the seller starts high and ultimately just wants to walk away without any money... I figured I had to put them in the marketplace or they would be removed... Here is a link to the calls

Austin Works · Answer

Account Closed, are there any tutorials or informational blogs you would recommend on this? I've been very interested in using social media, but I'm clueless on where to begin.

Braden Smith · Answer

Hey @Doug Haisten. Sounds like you are on the right track. I have been focusing mainly on direct mail based on a driving for dollars list, then layering in a high equity list in the same area as the D4D list. I too have gotten some calls from the high equity list, but just as you said they have not been truly motivated sellers. Some had had 100% equity and want to sell, but they do not have a real need to sell and want a price that is more like a retail price. I have been trying to come up with some creative ways to make a deal work, such as some sort of owner financing option but I have not had anyone that has been open to that option yet.

Doug Haisten · Answer

@Braden Smith. I agree with your comment "who would have the motivation to sell and the ability to sell at a price that would work with an investor". I have sent mailers the last 4 months to out of state absentee owners with high equity in older homes. I am okay with the response and that response gets better each mailing (a little better) but these haven't been motivated to sell. The houses are are more or less in good repair, rented, and the people not in a position to need to sell at 30% discount. I want to start DM for pre-foreclosures myself and/or tax delinquents as these people may be more motivated to sell. My best source of leads (and I am just 5 months in starting wholesaling) has been driving for dollars. I use a app to give me property/owner information and sending a card and am about to start cold calling on some of the better properties. I am also working on a lead generating website (one for sellers one for buyers). I am placing simple ads in ads in Craigslist.

Austin Works · Answer

@Braden Smith, thanks again for the great information! I will just start by casting a wider net and narrowing down as I track what's working and what isn't.

Austin Works · Answer

Thanks @Braden Smith, this is very helpful. Can give me an example of how far down you narrow your search criteria when building a list through an online platform like listsource.com? Any particular equity percentage, absentee owned exclusively, etc? What have you found to produce motivated seller leads in your area? I just don't want to waste a lot of money doing trial and error.