YellowLetter Alternative?

Question

I have been recently researching YellowLetter(s).  I am in the process of sending out 1000 - 5000 pieces in my region.  I know how effective the simple letter can be, but I have been playing around with some other content instead of the standard ones.  Here it is:

Dear Homeowner,

I am looking to buy a fixer upper in your area.  If you are thinking of selling and your house needs repairs, please give me a call.  I will give you a fair offer and I am able to close very quickly.

Thanks and regards,
Frank Geneski

The reason for this type of letter is to weed out anyone who wants top dollar for their house.  I only want to be in contact with people who have a beat up house and need to sell.  I am a contractor and just got my Realtor's licence, I will be doing most of the repairs and listing the property myself.

Thoughts on my idea and 'YellowLetter'?

Seth Williams · Answer

Frank Geneski, if you're trying to weed out the people who want top dollar for their property, I'd suggest eliminating any talk about giving them a "fair offer".

What's "fair" in their eyes will probably be completely different than what's "fair" in your eyes. I used to say this kind of thing in my letters too, until I noticed that A LOT of the people calling me were expecting a full market offer from me (which I had no intention of giving).

The truth is, I'm trying to get their property for as cheap as freaking possible - so in my letters and voicemail message, I take every opportunity to come right out and tell them, "I'll make your life very easy IF you're willing to sell your property AT A DISCOUNT." Don't hide the fact that you're looking to pay a very low price for their property (this is one of the first things I tell people on every phone call).

I don't want any misunderstandings, ever. If they have unrealistic expectations of what I'm trying to do, it will end up wasting a lot of my time and get their hopes up for no reason (which will leave them angry at me in the end).

Remember, your service will only strike a nerve with a small segment of the people you're mailing to - so don't be bashful about steering the wrong people away. The people who do need your service won't be scared off when you tell them that you intend to buy for cheap.

Seth Williams · Answer

Thanks for pointing that out Brian Hoyt - let me clarify that a bit.

The words "at a discount" don't appear on my mailer - but neither do the words "fair offer". My postcards talk specifically about the ways I can help the property owner with a number of possible scenarios that they are likely dealing with (I can do this because my lists a pretty targeted, and there are some known facts about the people I'm contacting).

The words "at a discount" ARE mentioned specifically in my voicemail message (which is what I was referring to above - sorry if I was too vague on that). So before a prospect even has a chance to leave me a voicemail (and before I spend any time talking to them), they already know that if we end up doing business, I'm not going to be sending them a FMV offer.

Does that make sense?

P.S. - I've bought somewhere in the neighborhood of 50+ properties using this kind of communication in my postcards and voicemail system.

Michael Quarles · Answer

Why not send the standard letter, trap cell number then send "I buy ugly" houses text.

Michael Quarles · Answer

I would not send more than 1000 until you learn a few things.  And do a split test.

It's the best way to answer your question.

Michael Quarles · Answer

Honestly.

The needs repairs will kill response although the response you get will be right on.

People know their house is ugly. Few want to admit it.

Tim Franks · Answer

In Alabama it's required that any licensed Realtor/Broker disclose that they are one in any real estate related marketing. They must include their brokerage name as well. I am sure it is this way with most states, however your qualifying broker will know. I would be very cautious and let him look over the entire ad and approve it before you send it out. Regardless if your marketing yourself as an agent or not, anything even related to real estate has to follow the state commissions guidelines. Your broker will be on the hook for it if someone reports you. And if it's highly competitive there and agents are fighting over clients, you'll always have those few who spend their time trying to find a way to get the competition in hot water. From experience it can be a pain sometimes being both investor & agent. It has kept me from being able to try some methods like stealth sites. But you will enjoy the crossover leads you will get from it. Both buyers and sellers. 
Good luck!
Tim Franks

Brandon Foken · Answer

Rick Harmon, I took a look at Craig Simpson's website and am intrigued. I tried searching around to find a 3rd party review of his product. What has your experience been like using Craig's newsletter/training program? I'm looking to have 1,000 mailers sent per month this year so I'm looking for ways to make them as effective as possible. Any insight/feedback on Craig's product is much appreciated.

Dawn Anastasi · Answer

I just read that a psychology article said that red and round are the things that get that get people's attention.  So instead of a yellow letter, why not something red and round shaped?

Frank Geneski · Answer

Rick Harmon Thanks for the resource, I'll definitely have a closer look.

I've put up several 'yellow letter' ads online and most of the responses I got where from people who had a completely renovated house and wanted top dollar.

I know that not every response I get will be a potential deal, but I'd really like to eliminate these types of responses for my direct mailings!

Rick H. · Answer

Some great advise here. What @Frank Geneski is really asking are really several questions, related to the copy, USP's and methods of sales conversion.  All are good responses.

Over the years I've become an increasingly bigger fan of zeroing in on the specifics of who and what situation(s) I'm looking for, and what I'm not.   I tell prospects that I'l. try to be helpful but I don't keep the 'pricey' part a secret in my copy so they know that up front.  You don't go to a specialty boutique and gripe about the price if they have exactly what you're looking for.

Here's a resource that you might appreciate: Craig Simpson, a heavy direct mailer from Grants Pass, OR, publishes a newsletter, "Mailbag Millionaire" that I subscribe to.  Exceptionally useful, if you are serious about direct response mail.  He was the DM guy behind Ken Roberts, who most people know from commodities trading, but I know from his earlier life teaching foreclosure investing in the late 1970's.