Is this a good wholesaling letter?

Question

I am preparing to do my first absentee owner direct mail campaign and this is the letter i have come up with.

(Subject’s name)
Street
City, state zip

Dear (subject),
I am writing you, because I am interested in purchasing your property located at (property street city state and zip). I live nearby in Milwaukie Oregon and wholesale properties in the Portland metro area. I am currently looking for homes in the neighborhood and this is how I learned of your property.

Please call me at (541) 993-xxxx, so I can tell you how I can get your property sold within a month, with no hassles and more importantly, at a fair price. As wholesaler, I help cash buyers purchase the house directly from you. This eliminates all real estate commissions or extra fees coming out of your price. The payment I receive and all costs associated with the closing come from the buyer. Finally, all offers are made in cash. This is so you never have to worry about delays resulting from a buyer trying to qualify for a mortgage and wasting your valuable time.

I’ll be glad to personally tell you more about how I how we can work together. All calls are completely confidential and there is no obligation whatsoever. Even if you are not interested in selling at this time, call (541) 993-xxxx, so I can help you with determining the value of your property. You should also keep this letter for future reference, since things in life have a tendency to change unexpectedly. Thank you for your time and consideration and I look forward to speaking with you.

Sincerely,

Mason Valenzuela
(541) 993 xxxx

P.S. If you are more comfortable with email, my address is (email address)@gmail.com

Michael Quarles · Answer

Mason Valenzuela The great thing about a long letter is that the phone wont ring much while filtering out non motivated people. At the very most maybe something along this line.. Dear John, Hi my name is Michael and I am going to buy a house in your neighborhood and if you’d like to have your property considered, please call me right now! Because I am a private buyer you will save thousands by not paying any fees or commissions. I’ll give you a fair cash offer, plus pay all of the closing fees. The best part is you don't have to fix up a thing. Here’s what Bobbie M. from Dallas had to say: “I’m so glad I called Michael, the property I inherited was vacant and a mess. I had no money to fix it up and needed to sell quickly. Michael gave me a fair cash offer on the spot, paid all the costs and closed in two weeks! I saved thousands in fees, didn't have to fix up the property and actually got a better price than my neighbor did selling with a Realtor”. Just so you know this letter has gone to several of your neighbors and unfortunately I can only buy one property at this time. So if you are interested in a quick sale at top price with no hassles, please call me- XXX-XXX-XXXX Sincerely, Michael P.s Remember I’ll pay you cash at top dollar for your house and you don't have to fix anything! I only have enough cash to buy one property so please call now XXX-XXX-XXXX The key to marketing is testing what works for you... Personally I want calls from everyone as I market via text as well so phones numbers are great...

Dev Horn · Answer

Mason Valenzuela I don't think you get into "below retail" in a marketing letter. I actually like your statement re: "a fair price". If a house is super nice and in a desirable area, it can easily sell for retail price in a reasonable period of time. Homes that are in a state of disrepair, that need some TLC, would not sell for "retail" or "ARV", because they need work to get there. Those are your targets. You aren't low-balling people, you are actually offering a fair price because most of these people will not get a "retail" price unless they put thousands into repairs. The only way someone like you is willing to take that risk is if there is a profit motive for you. That's reasonable. See what I mean? Some people think we take advantage when we buy houses at 60% ARV, but there is real risk being taken in these deals. Money only likes risk if it is off-set with reasonable reward. Enough preaching. You're a business person, and the plumber, painter, or carpet cleaner do not explain their profit margins to you. They give you a number, along with an explanation, and you take it or leave it. Same thing in REI. If they don't like your number, no one is holding their feet to the fire. Be proud of what you do in this business. For many sellers, this is there only option.

William Roberts · Answer

Mason Valenzuela Keep in mind when sending a mail campaign that there are three key elements to the campaign, The List, The delivery System and the Copy. Absentee owners from a good list company should be a motivated list and If your target group isn't curious as to what's inside they won't open it. Use invitation type envelopes (a little more expensive but worth it) and birthday stamps or flowers or animals etc, or some type of occasion stamp. Change up the color of your envelopes depending on the season. i.e.: red for Valentines day or pastels for Easter etc. and last but not least keep your letter short and simple. If it's too long they may not read through it. Know who your targeting and remember it's what you can do for them that's important. There is a saying I'd like to share with you. "If you can see John Smith through John Smiths eyes you’ll sell John Smith what John Smith Buys". Good luck Mason!

Jerry Puckett · Answer

Mason Valenzuela You've done a good job of pointing out the benefits of working with you. (as opposed to the features of your service). However, in my opinion, the letter is too long. I see most people scanning it (if it's even opened, and I'm sure you'll figure out a way to make that happen) and tossing it. Are you sure you want to promise a free appraisal? Most of the tire kickers that I have calling me, that's what they're after, a free appraisal of their property. The only number I ever give out is what their property is worth to me. I can see this turning into a very large time waster. If you are new to this business, then you haven't figured out just how valuable your time is just yet. Spend your time with the truly motivated sellers (who will not need nearly as many reasons to call you as you provide: they just need to know you can help them). Put the tire kickers to the side until their circumstances change and they become motivated. Trust; you will not be able to motivate a non motivated seller no matter how many benefits you provide

Mike Hurney · Answer

Hey Mason, where'd you get that phone number, it doesn't even work! Kidding of course. I don't see WIIFM in the first paragraph (and on the outside of the envelope). I'd do a split test and put ten different letters together based on your submission letter below: Mix up the order of paragraphs, highlighting, circling, spacing (mail 10-20/day) and see what works best. Good luck, Mike

Jerry Puckett · Answer

All good and very true points. No matter how good your marketing is, you're still going to pull some of these in. If at all possible, build relationships with Agents. Best to have a use for every lead. I am not a Realtor, but referrals alone pay my marketing budget most months.

Dev Horn · Answer

Addiel Flores made a great point - be a BUYER. Most home sellers will not know what you mean by "wholesaler". That said, I appreciate the spirit of your letter, in that you are trying to be "up front" with people, but I agree with others that true motivated sellers really don't need that level of detail. One thing to consider tho - if it sounds like you are just a guy looking to buy A house, you are going to get calls from people that assume you are willing to pay full retail for their house (with them saving the 6% Realtor commissions!). Sounds too good to be true! And... it is. By mentioning "no need to make repairs", etc. you can target motivated sellers with property that can sell at a discount. I assume that's what you want... (Of course, if you are also a Realtor, you may want just about anyone with a house to call you... I assume you are not a realtor.)

Addiel Flores · Answer

I agree with Jerry Puckett, the letter is WAY too long. People that are truly motivated want answers and they want them now! They don't have time or the patience to read through a long letter, especially if they don't know you. I do letters myself that are very quick and straight to the point and I know how much time even that takes me. You time is the most valuable thing that you have because you can never make any more of it. You only have what you are given. Also, I suggest, be a buyer! I know you are a wholesaler, but be a buyer. A wholesaler is simply a BUYER with multiple resources. You have the money to buy the house. You may be getting the money from transactional funding when doing a double close or from YOUR Buyer with an assignment. But you have the money and you are a buyer.

William T. · Answer

I am actually doing post cards and keeping it very simple. Sell your home FAST! on one side with company information. The other side... Homes wanted!! *Deferred maintenance *Pre-Foreclosure *Unwanted property *Abandoned or vacant This will be my first mailing and I am also doing direct mail per zip code and looking for door hangers for abandon propertys.

Mason V. · Answer

OK, I’ve got some questions. When using real estate terms (investor, buyer, wholesaler, rehabber, ECT), is there any particular instance when one is better than another? @Mike Hurney Beyond purchasing the house, how would I add a WIIFM in the first paragraph? @Dev Horn Should I make it clear that cash offers are made below retail price? Here is the updated letter that is about 100 words shorter. I am an investor interested in purchasing your property, as it currently stands, located at (property street city state and zip). I live in Milwaukie Oregon and am currently working on projects in the neighborhood. This is how I learned of your property. Please call me at (541) 993-xxxx and we can discuss how I can get your property sold within a month, hassle free and at a fair price. As an investor, there are no real estate commissions and all extra fees associated with the property sale will be paid by me. Finally, all offers are made in cash to ensure your valuable time is not wasted with a buyer who may not be able to obtain a mortgage. All calls are completely confidential and there is no obligation whatsoever. Even if you are not interested in selling at this time, you should keep this letter for future reference. Things in life do have a tendency to change unexpectedly. Thank you for your time and consideration, I look forward to speaking with you.