First Direct Mail Campaign

[Brittany Lee]

Hey all, I've been stalking BiggerPockets (though this is my 1st post) and just getting educated for a while now and am getting to the point where I'm ready to get started... at least with step 1. So I have a list of absentee owners with 40% equity in close proximity to Marietta, GA (where I live) but there are a ton. I'm wondering if I should be filtering more? Should I look for owners out-of-state preferably? I work full-time and when listening to one of the wholesaling podcasts an investor mentioned the importance of weighing the amount of letters you're sending with the volume of calls you'll be able to realistically return so any ideas what a ballpark no. of letters should be when starting and investing part-time? Any other tips would be awesome.. Thanks!

[Claire Trammell]

Hello @Brittany Lee! Welcome to the BP Community! Thought I'd take a stab at your questions.

For your list, it sounds like you are on the right track. If you are getting numbers you may want to narrow down the results by searching by zip codes and/or adding criteria to your search. We typically recommend: 

• 1-3 bedrooms
• 30%-100% equity  
• 4+ years ownership
• Median price range for your area
• SFR
• Absentee
• Owner Occupied
• No Corporate
• No Trust

We tend to yield good results with these guidelines. You asked if out-of-state owners are preferred, and I would say, in your situation with high number of results yes. At least, it could be a good filter to start with.

As for the number of pieces mailed, that can be determined by answering two questions: 1) what's your budget? and 2) How much time can you spend answering the phone and returning calls?

Based on our customer feedback as well as our own mailings, we have seen an average response rate based on the type of mail piece. This may give you an idea on how to estimate the call volume to expect. Again, this is an average:

Yellow Letters- average response rate of 8%-9%, all kinds of calls (angry calls, curious calls, tire-kickers, quality calls)

Postcards- average response rate of .5%, mostly quality calls.

Zip Letters- average response rate of 2%, mostly quality calls. (Great for follow ups)

Greeting Cards- average response rate of 2%, mostly quality calls. (Great for follow ups)

Lastly, follow ups are VERY important. On average, it takes someone 3-5 touches before they actually take action. We have seen that sending a different mailing piece every 3-5 weeks works pretty well. Granted, it may vary some in your market and you will need to test to find the right time frame, however, this may be a good start.

All in all, it sounds like you are on the right track! Hope this is helpful! Good luck and let me know if I can help!