All Forum Posts by: Chris Bounds

Dev Horn thanks for the comments. I've been factoring in the time factor. I just want to get a jump start on packing my lead funnel. I'll post follow ups on how the campaigns pan out.

Thanks Dev Horn . I have planned to use different postcards/letters for each batch. I keep thinking maybe it's better to keep with that and have the 3rd campaign mixed to get the best picture.

Hey everyone,

I mentioned in a post about my "business reboot" that I was starting a progressive direct mail marketing campaign.  I'm looking for advice, suggestions, or any other comments on improving my campaign strategy for a more aggressive direct mail marketing strategy for absentee owners.  I am using yellowletters.com. 

My first postcard batch went out Nov 3rd. (and surprisingly the first call I received is now under contract).  My second batch goes out next week.  The week after that I'm starting my first batch of typed letters. I plan on sending 7 batches for each campaign, going out every 4 weeks.  Each batch is about 800-900 leads.

The idea was to do a split test to see which works better, but I've read other posts where some people recommended mixing up the mail type (eg: letter, postcard, zip letter) verses staying with the same mail type (only letter, postcard, or zip letter).  Any comments on doing those strategies?  My plan was to stay with the same mail type for 7 batches and then afterward put them in a general mail piece that switches mail types on a less frequent basis.  Should I start my 3rd campaign testing the mixed mail type strategy?

Also, about what % of return mail is the norm?  I received about 3% from my first postcard batch.  Is it worth saving those leads for future reference to see if a newer mailing address is updated online.

In January I'd like to crank up the marketing efforts so any comments or suggestions is appreciated.  Thanks!

PP is the actual purchase price on the contract. Some local lenders will let repair expenses count towards equity. But a Fannie Mae loan can refi up to 75% ARV regardless of PP and your personal equity.

First, I'd personally never do a deal with family or friends being the motivated seller. I'd give advice and referrals, but wouldn't purchase and profit. Secondly, being new, out of state, and dealing with a PreF its a tall order. Helping them find an investor in that state for free (let the investor "pay" you in education/mentorship) is what I'd do if I were you.

Abraham Vasquez a good loan broker can find lenders to refi up to 75% ARV. I've used that strategy for low money down rentals. Local banks will likely go off the PP though.

@Jared Emerick I do not think the bank reps that I spoke with had any questions or concerns as to who I was after they verified the POA and Release doc. I set them up in my LLC.

A solid B & C plan is necessary.  Equity helps of course.  As a side note, conventional refinancing in less than 1 year after the deed transfer may be difficult due to seasoning requirements regardless of equity.  That was my experience a while back at least.

I do not know anyone on BP that buys Sub2. I was referring to people I've met at local REI meetings.

I am not a Sub2 expert. I've only done them a couple of times. Some of the first properties I purchased were Sub2. Since banks did not like broke college kids, Sub2 was one of the better strategies for me to use.  

@Jared Emerick I never specifically told them I was purchasing it. I did obtain a POA and Authorization to Release Info from the Seller and had those docs on file with the bank so they could talk to me about the account. Some others have told me that they do specifically notify the bank though.

To be safe when doing Sub2, make sure you have a couple of backup financing options such as a private lender or a hard money lender.

In my area buyers usually pay Realtor commissions for wholesale investment properties. If the buyer is buying for personal residence then they probably should pay it. Negotiate a split if necessary. If its retail then I wouldn't let 3% get in the way of a quick sale.

I'm not sure if mine know or not. I don't talk about it at work at all though. I doubt they'd care as long as I'm on task while on the clock.