Yellow Letter Mailers to find cash buyers - would this work?

Question

I have been using DM to find cash buyers with a list of names of people who have purchased homes for cash in my area in the past year. I have gotten about a 1% response rate, which isn't horrible but not where I want it to be either. I am trying to further build my list of cash buyers for wholesaling.

Would Yellow Letter Mailers work better for building my cash buyers list instead? What I'm using now is a very professional letter that explains what I do and includes a call to action to get on my buyers list, yada yada. I kind of think that YLM wouldn't look professional enough to find buyers, and that it's personal touch is more suited for potential distressed sellers instead. Has anyone had success using them to find buyers list quality people so I can be proven wrong? Thanks in advance!

Account Closed · Answer

I would save some money for DM to seller and go to Craigslist to look for cash buyers. I have had good response from CL for buyers. It's a start. I'm now spending my time and money mailing YL to sellers...b/c having a buyer with no contract to assign is not making me money either. ;-(

Ben L. · Answer

I personally would not mail "yellow letters" to "cash buyers". These are most likely serious investors in town who are actively buying and may not take your yellow letter seriously. If you are dealing with other investors, I'd recommend you keep your letter as professional as possible.

Michael Quarles · Answer

I hate my answer...

Sending out a yellow letter to potential buyers is not a great use of the money spent.    Use the money and find a seller who will sell at a discount.

Good deals find buyers... MLS finds buyers.  Yellow letters for buyers are comfort food.

I would rather you pull a list of just purchased cash absentee transactions in your  rehab areas and go knock on the rehab door asking the contractors for investor contact info.

Then cold call...

Drew Byrd · Answer

How do you distinguish cash home buyers from regular people? Should I just walk up to every random person and ask, "Hey, do you buy homes for cash?"

Account Closed · Answer

Chris,

I don't know about your neck of the woods. Here in the Bay Area, if you have a good deal to wholesale, there will be a line of cash buyers. Craigslist is a good place to start.  The courthouse steps always have cash buyers out there.  I've seen wholesalers out there passing out their business cards. I've called a couple of them for deals, but so far they haven't delivered yet. I don't think using direct mail to find cash buyers is an effective way to build your buyer's list. Just go down to the courthouse with some business cards.

Good luck

Bruce Runn · Answer

I  get dozens and dozens of yellow letters, realtor letters, wholesaler letters.  I know I'm not the only one, but as a serious buyer of properties, I never answer any of these since what serious buyer responds to generic solicitations?   I understand you have to try methods to reach out but I really I would only talk directly to someone that was introduced to me or came up to me personally at one of my renovation sites .   I don't have the answer on how to start as a wholesaler but a personal approach will be 100% more effective than a mass mailing if you can figure out how to approach the "right" people who can execute deals.

James Gefke · Answer

I know it was tough,  but well said Micheal:)

James Gefke · Answer

Hi Chris,

I would focus on using your DM dollars on finding motivated sellers.  Try and network with investors in your area to see how they evaluate potential deals.  There is plenty on info on this site that will give you a very good idea of what many investors are looking for out there.

I am not sure a direct mail campaign seeking cash buyers will yield the results you are looking for.

If you get properties under contract that no one is willing to buy than most likely they are not the deal you may think they are.  If you have a true deal you won't have problems finding cash buyers.

Cheers

Curt Davis · Answer

Cash buyers who are wholesale investors will not respond to anything you send in the mail.  Investors who are out of state purchase cash most likely are buying from a wholesaler.  I suggest waiting 12-18 months to mail someone who purchased today as you will not persuade a happy investor who just purchased to buy from you now.  Better luck trying them when there has been some time passed to give them a chance to be unhappy with who they are currently working with.

Chris Koerner · Answer

Good point, but having a home or two under contract to wholesale with no buyer lined up is not fun either. I feel a lot more comfortable "reverse wholesaling" if you will with a plethora of potential buyers already lined up.

I've tried CL, and I've gotten a few hits from it, but these seem to be much lower quality leads for cash buyers. A lot of them are newbies wholesaling as well and trying free methods of advertising without having to commit to the costs of DM.

Anyone have any insight on sending Yellow Letters to potential cash buyers?

Yellow Letter Mailers to find cash buyers - would this work?

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