San Antonio Wholesalers - Is Direct Mail DEAD???

[Hector Lozano]

I recently had a conversation with another investor in San Antonio that told me that direct mail wasn't a good approach.  He mentioned that after I had told him that I was planning on doing my first mailings in Oct.  According to him, there are way too many investors sending out mailings in this area.  Investors from the city and others from out-of-town. He went on to tell me that he's had conversations with other big companies that do direct mailings and they told him that they are averaging 2-3k wholesale deals from their mailings, but spending quite a bit.  He's more of the direct approach investor....hitting the tax auction list, foreclosure and drive4dollars, and so far, he's brought in 300k for the year.  What are your thoughts?  Is it worth it to invest in direct mail?

[Jonatan Barbera]

Hector Lozano that’s a tough question to answer yes or no to.

First, it really depends where you live as to how good it works. Here in SA, TX foreclosure leads get over 30 pieces and get so overwhelmed that they don’t call a quarter of them.

Second, marketing in a hot market like Texas depends on consistency. Anything can work at anytime. But consistency is key. There are times that months go by without us getting a single deal from direct mail and then we get 4-5 in a few weeks. The same goes for D4$, Bandit Signs, Door Hangers etc.

Third, you need to pick a strategy to can sustain for 6-12 months to get accurate data to determine weather it’s good in your market or not.

Hope this helps.