Wholesalers (and any direct mail marketers), check your data!

[David M.]

Hi Everyone!  I invest in Arizona where ownership records are public and quite easy to access.  As such, I get phone calls, letters, and even text messages asking to buy my properties for top dollar and cash.  Quick sidebar, if the same prospect receives 25 postcards from different sellers all saying the same thing, the message begins to lose effectiveness, and it might be time for the savvy marketer to move to something new.  But I digress...today was my favorite unrequested solicitation.  Quick second sidebar, since AZ property info is so open and widely available, I invested in a UPS Store mailbox for a "real street address" years ago.  Since switching to the UPS box, all property recordings point to that mailing address on public records.

So, long story long, today I received a 4" x 6" bright yellow card.  The front had the mailing and return addresses, along with a quick intro to his goal of buying houses in my 'hood.  Even a passport photo and phone number.  The back was a mail merged script addressed to my full name, and stating his interest in buying my property.  I'm sure some of you can see what's coming next, but Mr. Cash Investor wants to buy my UPS Store suite.

While this is obviously hilarious, after I stopped laughing I felt really bad for the guy.  He spent money to buy the list, print the card, and mail the card.  How many other UPS Stores did he offer to buy, or worse, how many times did he offer to buy the same one?!

As I take tongue out of check, I offer this as a learning lesson for anyone trying to break into the mailing list game or automate their existing manual mailing lists.  Often raw data includes many fields, and knowing which ones are the valuable ones is pretty much of paramount importance.  He misidentified mailing address as property address, and however many cards were in that same batch all suffered the same error, if not all time.

If you are running a business with infinite upside and potential life altering downside, take the time to make sure your data is right.  Whatever it is.  If this guy can't identify my property, why would I think he even knows what top dollar is?  Does he mess up proforma workups to evaluate purchases?  Etc.  If you are truly interested in building a brand, spend the necessary time on the details.  That's what differentiates five star properties...

Good luck!

[Jay Hinrichs]

Originally posted by @May Emery:

@David M.

"if the same prospect receives 25 postcards from different sellers all saying the same thing, the message begins to lose effectiveness, and it might be time for the savvy marketer to move to something new. "

I couldn't agree more. I have been advocating mixing up lists (not just absentee/investor) and going with more of a Benefits for the Seller approach. 

• Selling your house can be easier than you think!
• Thinking about selling but think it will take too much time and money to fix it up?
• Hate the idea of having lots of strangers come through your home to decide if they like it?
• Working with me will be easier than the traditional listing process because....

There's no need to put the property address on the letter/card - for just the reason. However, even if the public records are easy and open, you can save a lot of time working with a list broker who has compilers that can pull homes with the criteria you want and differentiate between the UPS store mailing address and property address. They can also suggest segments that won't be getting multiple offers every month.

@Rowen Burney have a plan so you aren't making the same mistake. 

Thanks for the smile. I enjoy your sense of humor.

I was toying with this one.

Hey you know your getting post cards by the dozens.. but did you know 95% who say they are cash buyers are really just trying to tie up your home and flip it for a huge profit.. They may or may not close. 

Ask them for a proof of funds in a checking account and 5k non refundable deposit when you sign the contract 5 day due diligence.. 

if they wont do that then I am your buyer.. I am the buyer not a middle man .. I have the cash proof of funds on request and I will give you 5k up front that you keep if I dont close. 

the guy i was talking about above. he does that does not put it on the card but when he signs a contract he gives 10k non refundable subject ONLY to title.. 

I wonder how that would work. ??

[Rowen Burney]

Funny story and a great learning opportunity for all of us. Il be sure not to make the mistake he did :)

[Account Closed]

Don't feel too bad for the guy lol- When I started my list was chocked full of errors and I still made money hand over fist because it was the right list :)

Definitely glad not to be sending out letters saying "Hey there 124 trust et al" anymore though.

[Jay Hinrichs]

I get all of my yellow letters and we buy houses mail at my mail box in Oregon and the proeprteis are all over the US.. they will generally mention the address or at least the city.

IE i want to buy your home in Birmingham or your home in Cleveland or your home in Vegas or your home in Indy etc etc. 

One of my vendors has been doing this for a long time and he only uses 4 X 6 card in Orange.. with a very clear direct message.. he sends out about 30,000 to 100,000 of them a month is what he told me.. so about 10 to 30k a month minimum.. HOwever he takes the deals cradle to grave manily new construction so he is not spending that kind of money to make a wholesaling fee.. its dog eat dog out there for all these beginner wholeslaers..  the guys that make the money of course are the ones selling the cards.. LOL  just like during the gold rush it was the hardware stores and bars that cleaned up.

[May Emery]

@David M.

"if the same prospect receives 25 postcards from different sellers all saying the same thing, the message begins to lose effectiveness, and it might be time for the savvy marketer to move to something new. "

I couldn't agree more. I have been advocating mixing up lists (not just absentee/investor) and going with more of a Benefits for the Seller approach. 

• Selling your house can be easier than you think!
• Thinking about selling but think it will take too much time and money to fix it up?
• Hate the idea of having lots of strangers come through your home to decide if they like it?
• Working with me will be easier than the traditional listing process because....

There's no need to put the property address on the letter/card - for just the reason. However, even if the public records are easy and open, you can save a lot of time working with a list broker who has compilers that can pull homes with the criteria you want and differentiate between the UPS store mailing address and property address. They can also suggest segments that won't be getting multiple offers every month.

@Rowen Burney have a plan so you aren't making the same mistake. 

Thanks for the smile. I enjoy your sense of humor.

[Jay Hinrichs]

Originally posted by @May Emery:

@David M.

"if the same prospect receives 25 postcards from different sellers all saying the same thing, the message begins to lose effectiveness, and it might be time for the savvy marketer to move to something new. "

I couldn't agree more. I have been advocating mixing up lists (not just absentee/investor) and going with more of a Benefits for the Seller approach. 

• Selling your house can be easier than you think!
• Thinking about selling but think it will take too much time and money to fix it up?
• Hate the idea of having lots of strangers come through your home to decide if they like it?
• Working with me will be easier than the traditional listing process because....

There's no need to put the property address on the letter/card - for just the reason. However, even if the public records are easy and open, you can save a lot of time working with a list broker who has compilers that can pull homes with the criteria you want and differentiate between the UPS store mailing address and property address. They can also suggest segments that won't be getting multiple offers every month.

@Rowen Burney have a plan so you aren't making the same mistake. 

Thanks for the smile. I enjoy your sense of humor.

I was toying with this one.

Hey you know your getting post cards by the dozens.. but did you know 95% who say they are cash buyers are really just trying to tie up your home and flip it for a huge profit.. They may or may not close. 

Ask them for a proof of funds in a checking account and 5k non refundable deposit when you sign the contract 5 day due diligence.. 

if they wont do that then I am your buyer.. I am the buyer not a middle man .. I have the cash proof of funds on request and I will give you 5k up front that you keep if I dont close. 

the guy i was talking about above. he does that does not put it on the card but when he signs a contract he gives 10k non refundable subject ONLY to title.. 

I wonder how that would work. ??

[Mindy Jensen]

Try it and let us know, @Jay Hinrichs

[Jay Hinrichs]

Originally posted by @Mindy Jensen:

Try it and let us know, @Jay Hinrichs

 I'm tempted after getting well literally thousands of the exact same letters over the years.. 

and whats funny sometimes I call them back most never answer.. and if they do they are shocked since they never got a response.

then they try to fumble around with a pitch..  but its just like anything the well capitalized highly organized and super duper closers take 95% of the deals..  just sending out some letters when you really don't know what your doing.. is failure 95% or more of the time .. so people get all cranked up maybe pay 10k for a class spend another 3 to 5k on direct mail.. and NOTHING>. done before they start.

Its like any business you need a year in the bank in cash.. and then hit it . of course some markets are much better than others those with low value assets were wholesaling tends to be how real estate is transferred.. but in high priced areas.. you need to spend some pretty big money and be on it to succeed.