How to choose an area for direct mail marketing?

Question

I live in Central NJ. I have no idea what area should I be choose to start my direct mail marketing campaign. I want to pick a zip code and be persistent with my mailers, hoping to find at least one deal before the end of the year. Can you help me?

Joe Hayden · Answer

I suggest looking at Quantum Digital for your mailers.  They have relatively detailed parameters which you can use to filter your mailing list, including a polygon map function.

I agree with others about adjusting your thinking for marketing for investments.  You can spend a lot of money with very little return by casting a broad net.  As a real estate agent, it's a little easier for us because part of our advertising is top-of-mind branding, not necessarily drilling down to our specific customer.

Sharon Vornholt · Answer

Doug Haisten-

I add new people every month. So if you have 200 now, then add the new ones to your database every month until you have a big list. Remember that you will keep mailing to them.

Here are some articles that I have written on this subject below, but there are a ton of articles on this site on this subject as well as on my blog:

http://www.biggerpockets.com/renewsblog/2012/12/04/how-to-use-direct-mail-successfully-in-your-business/
http://www.biggerpockets.com/renewsblog/2013/06/11/real-estate-investing-probates/

http://www.biggerpockets.com/renewsblog/2013/03/05/what-is-direct-mail/

Sharon

Abdul R. · Answer

Thanks Sharon Vornholt, I understand what you mean. It gives an idea on how to approach NJ too now.

Doug Haisten · Answer

Sharon:
so when looking for a zip code to send to or a specific group, what number of recipients, with the response rate to direct mailing being what it is,  should be sent a mailing? For instance, in my county there is less than 200 for inheritance home owners. If I expand out another 60 miles I don't quite done that number. It seems 400 mailers doesn't have the critical mass to be effective.

Doug

Sharon Vornholt · Answer

I personally only mail to out of state AO's. KY is not a huge state. Now if I were in CA or TX I would have to change my parameters. You need to narrow that list down by equity desired, home value range and zip codes you want to omit for bad areas.

Sharon

Steven Walter · Answer

Abdul, I narrowed down my list of absentee owners by sorting on 1.) out of state, 2.) outside of city, 3.) in the city.

Abdul R. · Answer

Brian Gibbons Thanks for sharing that. I liked neighborhood scouts.

Ceasar Blackman Thanks, very useful tip. I will look into it.

Sharon Vornholt I am thinking of Absentee owners. Even then, don't I need to choose certain areas? If not the list will be too huge?

Ned Carey I am looking for Rehab deals. Very useful tips. I need to improve my networking through my local REI clubs.

Ned Carey · Answer

What type of deals are you looking for? If yo want rentals you may be marketing in a very different area than if you want rehabs.

If you want rehabs then the heat map idea is a great one. Look for distressed properties in an area where there is a lot of sales activity.

If you want to wholesale deals ask other investors where they are buying that way you know you have buyers for those deals.  Go to you local investor group to network to find rehabbers and landlords that are actively buying.    Good luck - Ned

Sharon Vornholt · Answer

Abdul -

I would recommend that you think about which niche you want to work in such as absentee owners, preforeclousures, probates or aother one.

If you were a Realtor, you might want to farm a certain area or zip code for houses to list. But you really need to think about this a little differently as an investor. If you were to mail certain zip codes, there would be no way to single out potentially motivated sellers.

Sharon

Ceasar Blackman · Answer

my stardegy so far was use Trilua heat maps to find zip codes that fit my idea of price, then i go to the tax assessor of the county and filter through the zip codes fitting my price. Then i rank the zip codes according to the most sales and out of the high ranking ones, i enter them in Listsource to build a big enough list. But hey I'm a newbie just trying this out. Im sure there could be a easier way