All Forum Posts by: Jason Morgan

Cool, thanks for the advice. Just planning and preparing for what I need to do to get 6 and work backwards from there. Will be jumping all in head first as soon as I get my marketing materials back.

Thanks Rene for the response,

    After posting to this forum I contacted yellow letters.com to inquire about response rates. They told me .5% for postcards, 8% and up for yellow letters and 2% response rate for zip letters. Now that I have one variable solved, the other variable would be the closing rate if I use a targeted list of 30-90 day lates with direct response message of taking over their payments/owner financing opportunity. Will be targeting customers with 0% to 30% in equity meaning I will have less competition with wholesalers and realtors because these deals won't have a lot of equity.

Question now is what would be a reasonable close rate for the incoming calls I recieve? I have a lot of book knowledge on Realestate but nothing done on the street, yet. If I need 6 deals and I close 1 out of 5 leads I will need to mail out 1,715 pieces of mail if I was 50% wrong on the response rates that were provided to me from yellowletters.com.

Postcard: .25%       Yellow Letter: 4%      Zip Letter: 1%        Avg.: 1.75%

Est. Close Rate: 20% = 1,715 mailings = 30 calls = 6 accepted offers

Would the close rate be too high or too low?

Good afternoon all,

    I am a new investor that has a goal of getting 6 subject to/lease option deals in the next 3 months. I have some experience with marketing and copy writing but I hired a professional from elance to create my direct mail marketing pieces (Post cards, 3 step sales letters) to increase my response rate.

My question is what would be a good response rate from direct marketing on the 1st, 2nd, 3rd and 4th mailing? Also what would be a reasonable lead conversion rate for someone starting out in the business(I'm new but I've been studying realestate for years so I wouldn't say I'm totally green)? 

These numbers are important to me because if I need 6 deals and I know what the response rates will be and what is an expected conversion rate for someone new, I can plan my marketing accordingly instead of flying blind. 

Ex: 12% response rate for direct mail, 50% conversion rate = 100 directmail pieces to get 6 deals

I know that's a rose colored view of what I would like to happen but you get the drift of the question, any help would be, well helpful. 

Signed,

  Newbie from GA