All Forum Posts by: Brad Chandler

From my direct mail list provider:

1% is definitely not standard outside of a webinar or specialty list.

No one who is doing real volume is getting 1%. 
Over 10k pieces response rate is not a metric that is as applicable, it becomes CPA and ROI.

For larger volume (above 20,000) .004 - .0075 is more normal. Sounds low, and, it is! But the math works, and, it is actually trickier than it might seem to keep this consistent as numbers get big. Super easy to do when you are only hitting 5-10k, great response, but low volume.
Response rate is often misused as blanket term, really meaningless as far as non-vanity analytics is concerned, here is why;

- Response rate is only relevant when derived from a specific segment or target.
For example; response rate for probate = .02%, response rate for code violation = .06% response rate for out of state owner = .009%, owner occ = .004%. So, to evaluate response rate, you must segment by type. If we look at overall response, it is just a blended

sum by rate and volume of each segment.

With CPA and ROI, we have to determine at what point we start to see diminishing returns based on the

median deal profits and the blended response. It is a question of where do we draw line for chasing diminishing returns. Additionally, we need to consider that competition erodes profits. So, there is a more strategic question of how much does it cost if we are not winning market share. 

@Jim Groves - it just really isn't needed. You can use regular LLC's and get the same protection.

Just regular LLC and get a new one every so often.

We had a delaware series LLC years ago. Not sure I would do it again. I think it is overkill. What type of investing do you do Peter?

I don't know the answer for sure but you should be licensed under your general business that will then own the LLCs that purchase the properties. We do buy and holds and flips in DC if you want to work together.

Anthony:

Would love to work with you. We buy in DC and Baltimore metros. We buy 200 or so per year and wish we could buy lots more. We want properties where we can buy at 65-70% of ARV less repairs and where ARV is more than 100k. Also, looking for rentals in decent neighborhoods - 3 bdrm min. Looking forward to working with you.

I've been unsuccessful for years on Facebook but I am determined to make it work. I feel like if people will call a TV ad they surely will call or click an Ad on FB. We do have much better luck with Google and Bing PPC.

Juancarlo:

Caza - run by Rob Chevez - is a good one in Reston. I am with Express Homebuyers. We buy 200 house per year and would like to work with you. Let me know of any deals you have and how I can help. 

Thanks!

I would advise you to join a Keller Williams team. If you join the right team you will learn a ton.

Chris:

Apartment owners are typically more sophisticated than homeowners so be prepared that deals may be a bit harder to come by. What you are looking for is extremely targeted - b/c of that I would not recommend radio or newspaper - this coming from a guy who has spent close to $10M on TV ads in the past 12 years. Stick with direct mail, phone calls and even door knocking (if you find a deal that you think may be a big winner). Good luck with your goals!