using direct mail for finding off-market deals

Using Direct Mailfor Finding Off-Market Deals

connectedinvestors.com: the real estate investors marketplace and community

connectedinvestors.com: the real estate investors marketplace and community1

Many uber successful real estate investors – and successful marketers in general – use direct mail to bring in new business. For the investor, direct mail keeps their lead pipeline full of new and targeted leads. Using direct mail is like turning on the faucet to that that pipeline. Do a mailing – expect the phone to ring with leads on the kinds of deals you are looking for. Direct mail works and that’s why so many successful investors use it. It’s targeted and effective, but it’s not for those without some sort of budget. HomeVestors, the “We Buy Ugly Houses” people and proclaimed largest house buyer in the U.S., uses direct mail on behalf of their franchisees. It’s not even uncommon for local investors to get mailings from HomeVestors as they farm the prime investment neighborhoods. They do it because direct mail works. But you don’t have to be a big corporation with a huge budget to take advantage of direct mail. In this session, we’ll cover the basics of putting together an effective and affordable direct mail campaign.


RESOURCES:The key things you need for a successful mailing campaign include:

• Mailing lists – lists that are targeted to your types of investment deals. • Marketing materials – including postcards, letters, business cards, �yers and of course, postage • A Connected Investors buyer and seller website, business email and a phone.

Using these resources, we’ll show you how to pull together a mailing that results in good, quality leads.


STEPS TO SUCCESS:If you don’t have a Connected Investors websites already, it’s time to get them set up. Most consumers today look for web presence for just about every service. If you don’t have that presence, your mailing could go directly in the trash. Most investors will tell you that their web traf�c increases signi�cantly after a mailing. Without fail. So, when you really want to boost business AND your credibility, having a website is a must. Connected Investors members enjoy the added bene�t of a website presence as part of their membership.

But before there’s a visit to your site, there has to be contact with your potential customer. This is where your mailing lists come in. Your exit strategies can help drive your mailing lists. Looking for �x and �ip properties? You may want to “farm” a particular neighborhood – blanketing the area with mailers. Owners in Pre-Foreclosure or with delinquent taxes are also good potentials. Owners without the resources to pay their mortgage or taxes are less likely to maintain their property. Want to add to your rental portfolio? Mailing to landlords and absentee owners can be a good source for deals. Looking for potential long term holds with owner �nancing? You can put together equity mailings.


So, how do you get started? Let’s take a look at your different target sellers and how your mailings can appeal to each. We’ll give the characteristics of each type of seller, why you want to target this type of seller and how to execute a great mailing. We’ll cover Absentee Owners, Delinquent Taxes, Estates and Probate, Equity Mailing, Farming Neighborhoods, Burned Out Landlords and Pre-Foreclosure.


Starting with Absentee Owners – these are the sellers who own property in your area but don’t live there. They may have purchased the property as a vacation home or even a place for their college age kids to reside. In any case, they intended to own and manage the property from a distance. Then there are the accidental Absentee Owners. Maybe there was a divorce or job relocation or even an inheritance and they own a house in your area but don’t live nearby.

As with any seller, when considering an Absentee Owner mailing, you must consider owner motivation. In many cases, the absentee owner may not be in a big hurry to sell. Consequently, that means if you are looking to close a deal in the next three weeks or so, an absentee mailing isn’t your �rst choice. But here’s the deal. Many of these owners will tuck your mailer away for future reference. It is not at all unusual to get a call weeks, months or even a year or two later! And not all of these homes are �xer uppers. Many absentee owners maintain their properties well. So, these mailings are best when you have a target neighborhood in mind - combine an Absentee Mailing within a Farm Neighborhood. It’ll pare down your mail list to make it more affordable and keep your acquisition areas more on target. You will also �nd absentee owners who live in your town but not in the property – these are typically landlords and can in some cases make good targets for mailing. We’ve got more on Landlords and Farm Neighborhoods later.


Putting together the mailing list is pretty simple. You can purchase a list from the many list providers found online. Or if you have more time than money, you can create your own lists from property and tax record aggre-gators like CRS or even a more local service. Most of these services allow you to sort and download usable data can be mail merged into mail labels or letters and envelopes. Look for properties that list the owner’s mailing address differently than the property address. When you are working with an Absentee or most any other type of list, you’ll want to exclude proper-ties that have been purchased in the very recent past. These owners aren’t typically interested in selling any time soon. Absentee Mailing campaigns should be done at least three times a year to keep your message fresh and top of mind for these potential sellers.


A more motivated seller is the owner of a property that has Delinquent Taxes. When you are considering mailings of this type, you can expect that most of the properties are owned by someone facing �nancial dif�culties and the house may not be in tip top shape. But there are exceptions, so be prepared that your mailing isn’t hitting only highly motivated sellers. So like the Absentee list, it’s best to scrub the list and focus only on your target investment areas. And depending on your area and how aggressively the tax collector pursues delinquent accounts, you may not quick call backs from your mailing. In many areas, the delinquent tax list can be enormous, so scrubbing the list is critical if you need to save money. You’ll want to eliminate high end properties if that’s not your game, low end properties for the same reason (unless you’re into wholesaling) and any other characteristics that make the properties a bad target for you.

Mailing to properties with delinquent taxes can be as simple as getting the list from your local tax collector. But if your tax of�ce will not provide the list, there are list providers out there who can for a fee prepare a delinquent taxes list for you. From there, it’s up to you to scrub the list – unless your list provider can do it for you. Ask!

If you’re thinking of doing a Delinquent Tax mailing, you should plan for multiple mailings just as with Absentee Owners – a minimum of two to three times a year should keep your message front and center to these home prospective sellers.


Estate Properties have a lot of potential and as such are very popular among investors. You may also hear them called “Inherited” or “Probate” property. Many people who inherit a property don’t know where to start if they plan to dispose of the house and they often welcome your

mailing. But it is critical when contacting these sellers to be conscientious about the situation at hand. Working with a grieving seller can be a delicate process. Many – but not all - estate properties are in decent condition, and yet they will need as nearly much work as a �xer upper because they are typically very outdated. But estate properties can be a great source for both �x and �ip deals and rentals. When you are considering estate mailings, if you can �nd out the number of heirs involved, this can be really helpful to you. An estate property with eight different heirs in eight different locations can be dif�cult to close. Not only for getting everyone on the same page, but also if you’re looking for seller �nancing. Multiple heirs can make seller �nancing next to impossible.

When you are considering which mailings are best for you, Estate Mailings should be on your list – but like some other mailings, it can take some time for the sellers to take action. If they don’t call now, the owners will often tuck your information away and call you months and even years later. So if you’re looking to close a deal in weeks, not months, there are better targets for your mailings such as Pre-Foreclosure. That fact aside, Estate Mailings are worthwhile and should be done at least quarterly. New properties will populate your list with each mailing. To build a list of Estate Properties, you can purchase a list or you can create your own, either through local property records or by visiting the county’s Probate of�ce in your area.


Equity Mailings are where it’s at if you are looking for seller �nanced deals. Pick a farm neighborhood and then only mail to those owners who purchased their house 20 plus years ago. Some of these owners will be mortgage free, making the perfect opportunity for seller �nancing. This is where you look for your buy and hold properties – building a portfolio of rentable properties with seller �nancing can get you on a path to long term wealth. Many of the owners you’ll contact may not have selling their house top of mind – but chances are that when they do consider selling they’ll call you. According to Zillow, about 20 million (or about one third of) homeowners nationwide own their home free and clear. This makes Equity Mailing very appealing. Your criteria for mailing doesn’t need to be mortgage free – just make sure your list includes homes purchased at minimum 20 years ago. Equity mailings should be done at least twice a year for best results.


Farm Neighborhood Mailings can hit all kinds of sellers. When you choose a target neighborhood, your mailing may also hit landlords that live in there, owners with equity, estate property, pre-foreclosure and absentee owners. When choosing your farm neighborhoods, consider your exit strategy. If you’re looking to wholesale or �x and �ip deals, you want the areas where there are �xers just looking for an investor to come along and buy them. If you’re looking for solid rentals, you’re looking for those neighborhoods with good rental history – and that appeal to the type of tenant you seek.

Farming a neighborhood is pretty simple. Even the U.S. Postal Service offers a program that mails postcards to your target areas. When planning your farm mailings, it’s best to plan to mail those areas several times a year. Realtors often use farm mailings to solicit listings. So your message in this - and all of your mailings - should be “We BUY houses.” Whether you are using a paid service such as the post of�ce or another online list provider, or you are creating your own lists through your local tax records – it is critical that you differentiate yourself from a listing agent.


Landlord Mailings can reach all kinds of landlords – depending on the source of your mailing list. There are the seasoned landlords who’ve owned investment real estate for years and will continue to own real estate. Despite the fact that they are in it for the long haul, it’s not uncommon for these landlords to move properties in and out of their portfolio. For that reason alone, they can be a great source for deals and to also network with. Then, there are the accidental landlords – those who own rental real estate because of circumstance. Maybe it’s relocation or an inherited house. Accidental landlords can often become the most motivated sellers in the ranks of landlords – the burned out landlord. They never intended to own and manage real estate, so after a few evictions and renovations, they’re burned out and highly motivated. Like any of your other mailings, you can purchases lists, you can create your own lists from tax records or you can go straight to the source of the burned out landlord and search your local eviction records to create a mailing.


If you are looking for the most motivated of sellers, your best bet is contacting Pre-Foreclosure property owners. Pre-Foreclosure property mailings can net you a number of buying opportunities. You may contact an owner whose mortgage is upside down – this is an opportunity to create short sale. If you �nd an upside down property in a fantastic location, it could be an ideal short sale candidate. Don’t exclude it from your acquisition strategy because there’s no equity in the deal. You may also �nd properties in foreclosure that can be purchased “subject-to” the existing mortgage. Good candidates for subject-to acquisitions include those properties that you want as a mid- or long-term hold. Since you are taking responsibility for an existing mortgage, it’s a great way to fund your rental portfolio. Then there are properties that have suffered from neglect and abuse – these properties can be great �x and �ip candidates.


Mailing to pre-foreclosure owners requires more frequency – these owners often ignore their mail. They’ve been inundated with letters and notices. Depending on your area and the time frame for a foreclosure �ling to complete, you may need to mail to this group at least twice a month.The bigger challenge with pre-foreclosure mailings is knowing when the property has actually gone to the sale and the owner is no longer in possession of the home – it’s either been purchased at the courthouse sale or become a bank-owned REO.

Your pre-foreclosure mailing list can be purchased, you can create your own through online research, or your list can be created and managed through local courthouse records. The availability of pre-foreclosure information is different in each area, so a little homework can clue youin on the best way to tackle this.


Postcards/FlyersNow that you know more about the targets for your mailings, what do you send? In the chapter on Door Knocking, we outline the steps to creating a good �ier. Those same concepts can be applied to your mailings – whether you are sending postcards, letters or �iers. Create an attention grabbing headline that’s relevant to your audience, present the hot button issues for that audience, present your solutions to those problems and give them a call to action. You can �nd many great examples on the web and from your fellow Connected Investor members.


ACTION STEPS COMPLETEDSo before you get started, set up your Connected Investors website if you haven’t already. Determine your potential exit strategies. Identify your target mailings. Pick your farm neighborhoods based on your exit strategies. Determine where you will get your lists and how you will scrub them to eliminate properties and sellers who don’t �t your criteria. All of this is will determine the message in your mailing and your mailing frequency.

Direct mail works – that’s why it’s a strategy used by successful investors and some of the country’s largest home buying organizations. It’s not the cheapest way to get good quality leads, but it is one of the most effective and direct. No matter which segment of property owners you choose to target for your mailings, work toward clean mailing lists and repetition to get the best results. You can keep your deal pipeline �owing, your phone ringing – all with a great return on your investment of time and money.

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using direct mail for finding off-market deals

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