High Response Rate or Fewer Qualified Callers?

Question

Hello BP,

I recently sent a yellow postcard to 439 absentee owners.  I received a great response rate (10 calls) but most of the callers were looking for full market value on their homes (I added 2 callers to my buyers list).  I did not receive any calls from truly motivated sellers.

I understand that I need to keep sending to my list to really find the motivated sellers but I'm considering a change in my verbiage to help eliminate these wasted calls.  Should I add a discount home buyer statement to my marketing? 
 
Something like:

"Dallas Cash Buyers is a Real Estate Investing Firm that purchases homes at a discount.  In exchange for this discounted offer we will: pay you CASH, buy as-is, can close fast, and cover closing cost."

This change would most likely lower my response rate but I'm thinking it may increase the quality of callers.

What are your thoughts? More calls or better qualified sellers?

Here's the content from the postcard:

Yellow 4 X 6 postcard, Black text (there will be a large vertical "NOTICE" on the front-left of the card.

FRONT of the postcard:

Dear NAME,

I am interested in buying your property at ADDREESS in CITY. I buy several houses each month in CITY and I'm looking to buy more in this area.

Are you tired of managing a property that you do not occupy?

If so, I can offer you a fair CASH price for your property at ADDRESS. I buy 'as-is' and I will close quickly, cover closing cost, and pay you all CASH with no fees associated with the deal. I am easy to work with and treat everyone fairly. I'd like to offer you a win-win situation to relieve you of the stress related to your property.

Call me today for a FREE, No obligation, confidential conversation about your property: 972.555.5555

If you're not interested in selling now, please keep this card for future reference.

For free recorded info on our home buying process call: 800.555.5555

BACK of card:

(Top section)

NAME, I'll pay you CA$H for 
PROPERTY ADDRESS

Call me today - Get a cash offer tomorrow!

(side section next to address area)

Call me today to 
SELL YOUR HOUSE FAST!

972.555.5555

- Pay you cash 
- Buy your house as-is 
- Close Quickly 
- Handle all of the paperwork 
- Cover the closing cost 
- No Fees

- And TREAT YOU FAIR!

Thanks for any and all help.

Ned Carey · Answer

Stinson,

In the bigger scheme of things 439 mailings is an insignificant number.

William Tingle says "everything works somewhere, Nothing works everywhere" You have to keep trying different things and testing the results. In another thread Jeff Coga mentioned tracking results. That is key for marketing.

Some other sellers to target, landlords with properties for rent, code violations, behind in taxes, behind in mortgages, probate, not just absentee but out of state owners, Nominal transfers, fire, landlords that have filed for eviction/rent court.

Some of these will be easy to find some will be hard. We build some of our lists , one at a time cutting a pasting info from online sources to a spreadsheet we can mail merge.

Some of your problem may be your screening and negotiating skills. Most good deals are negotiated not found. Often deals come from sellers that start with a number that is way off.

The key is motivated sellers. It could be as simple as you 439 mailings simply were not enough to bump into a motivated seller.

I would recommend against saying yo buy houses at a discount. What is the benefit to the seller if you buy at a discount? Better is to say "I buy hard to sell houses" or "I buy Problem properties"

Bryan Hancock · Answer

I didn't read your whole post...

Your problem is with you list...not your ad copy.  Find a better list with motivated sellers and you will get the best of both worlds...more calls from motivated sellers.  The list is the most important part!

Stinson Bland · Answer

Ned,

I agree with you, the data from 439 names is not much to analyze.  I also agree that I most certainty need to acquire more (creative) names to mail to.  I need to find truly motivated sellers. We have a high cost per call with HomeVestors but Most of the callers are really motivated.

I'm also concerned about my dialog with sellers on my initial call. In peron on appointments I do a great job gaining rapport, locating their motivation, and creating a solution.  I'm worried that I may be missing a few deals based on my conversation with sellers when they respond to my direct marketing.

That's why I started this thread:   http://www.biggerpockets.com/forums/48/topics/66399-handling-a-buy-call-from-a-seller

Please take a look and give me some feed back.

Thanks to all for your input and ideas.

George P. · Answer

Also, absantee owners list might be toasted - lots of people mail to them all the time.
PS since you're with HomeVestors, you might also check with them. They sold you a system and as I can imagine, marketing should be a part of it. Unless they go with billboards only...

Mike Nelson · Answer

Brian - where can you get a list of property owners with a big drop in credit scores?

Stinson Bland · Answer

George,

I do utilize the Homevestors advertising but we advertise as a group (Dallas and Fort Worth) and I'd like to generate more calls. With Homevestors we use many forms of media: billboards, direct mail, television, traditional PR, phone books, and the Internet.

I am looking to expand my client list and simply get more calls. I would like for our office to have at least 2 to 3 buy appointments a day. My goal is to close 6 to 8 deals a month before the end of 2011 and we are far from that with our current marketing strategy.  That is why I'm exploring independent marketing.

Brian,

I should have time to explore the credit list later this week. I hope others do chime in.

Anyone else have direct mail hints, tips, or ideas?

Thanks

Bryan Hancock · Answer

The credit score drop list is the best IMO Stinson.  There are some folks on the forums that run yellow letter companies that may chime in with better information.  I doubt they will want to give away their list sources though!  That information is generally closely guarded.

Stinson Bland · Answer

Great idea Brian... I will look into expanding my mailing list.

Any other ideas?

Bryan Hancock · Answer

Not sure if they still do them...but it is worth trying:

Black Book Data

Bryan Hancock · Answer

It really depends on what you are hoping to find Stinson.  You will get much fewer motivated sellers for free and clear product.  They are MUCH less likely to be motivated.  They may be good candidates for financing a property for you, but they are much less likely to be in distress.

There are list companies that monitor people's credit scores and send you their name when it drops a bunch.  Those are generally good sources for mailers.  I would do some research and try to find those lists if you are looking for motivated folks.

What are you hoping to find with your marketing?

High Response Rate or Fewer Qualified Callers?

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