We are currently perfecting our series of letter to motivated sellers. We are testing these letters to a group of 300-400 homes at a time. Is this too much...too little?
I would agree 300-400 seems small, besides most direct mail advertsing doesnt work instantly, if we get 2% return we are all happy. remember if youre mailing to NOD TS or Deaths so is everyone else.
And strong buyers are knocking doors, so your letter better be good.
I would try picking a farm of homes somewhere around 1500-2000 located in an area you can buy in. Send out letters and postcards.
I use two very different looks, the first are my handwritten letters and the second are a set of informational postcards.
I am currently mailing to our farm areas. I have two campaigns one to SFH and another to multi family. I have segmented these farm areas into groups of about 1500 properties.
I guess I was afraid that if I tested larger groups at a time because I might be wasting my marketing dollars.
By the way if you only have a farm of 1500 try knocking doors. 50 doors a day wont take long. You will be surprised at the response. make sure you have a brite card to leave. And dont forget to tell them about your bird dog payments
I am mailing to several groups of about 1500 homes. I am doing s series of letters and post card campaigns.
Instead of knocking on doors I have been doing reverse number lookups and doing cold calling. I called about 10 or so from my list of identified distressed homes within my farm areas. I go some that were nice and said no and some slammed the phone down before I finished my sentence. But one was potentially a good lead I will be pursuing.
I hate being told no! But I just keep reminding myself that every no leads me closer to the YES!
how in the world could you knock on 50 doors in one day. first of all, where i live there are only about 20 lispendens in the town and in the surounding towns you are lucky to find 3-5. this is within a 40 mile radius. to knock on 50 doors it would take about 4 days and be about 400 miles of driving. I would like to know where you are able to do this because i will move there.
Ryan
Every door has got to be the biggest waste of time...not to mention a killer on the breaks...might as well deliver papers.
anyway...knocking on 50 doors of "potential" motivated sellers is way out there...if your knocking on 50 doors of motivated sellers you must be saying something wrong hahaha
So what youre saying is if youre farming the only method of contact is a letter. I am sorry to tell you but knocking doors works. If you expect to get a 2% return on direct mail, that is 1 prospect every 50 contacts.
besides it happens to be the cheapest form of advertising. [ Edited by IBuyHousesInc on Date 05/07/2005 ]
I think knocking the doors is the most effective way to find if your a good speaker. Anymore I get as many by referral as I do by all other methods.
Walking next door on my latest aquisition I found out who on the street is interested in selling, who is elderly and may be interested and who is renting etc.
The follow up every 3-4 weeks is ideal with Direct mail. I get 2-3% and send out 1000 at a time.
I have it listed for 165k I had one bite at 145k but they did not move any further!
taxes are 3500 year.
insurance is 2000 year
New roof 2 years new gutters
I pay gas hotwater & heat. Tenants pay electric...
Located in nice small city community. Gloucester City NJ
My cash flow is good, but what does the value become for an investor?
According to the numbers you provided on this property the list price of $165,000 would actually be fine. If you run the numbers through RentIncome.Com, you get a 8.21% cap rate, 7.97 GRM, 1.29 DCR, 7.91% cash on cash return (assuming a 30 year fixed @ 7%, 20% down) and a cash flow of over $3000 a year. Essentially, the Proforma Statement would look decent to a potential investor willing to buy the property.
[addsig]
like an arts & craft store, good idea.
#2 is kind of like an incentive to motivate them to make sure there rent is paid on www.time.maybe i could tweek it some more
erinnew,
300-400 is a decent test. Strictly speaking, more like 1000 is statistically more sound, but I have often done tests of that size.
Also, before you give up on a list, remember to follow up. One mailing is only a fraction of the battle.
To your success,
Jason Van Orden
[addsig]
I would agree 300-400 seems small, besides most direct mail advertsing doesnt work instantly, if we get 2% return we are all happy. remember if youre mailing to NOD TS or Deaths so is everyone else.
And strong buyers are knocking doors, so your letter better be good.
I would try picking a farm of homes somewhere around 1500-2000 located in an area you can buy in. Send out letters and postcards.
I use two very different looks, the first are my handwritten letters and the second are a set of informational postcards.
Good luck
Thanks for the insight!
I am currently mailing to our farm areas. I have two campaigns one to SFH and another to multi family. I have segmented these farm areas into groups of about 1500 properties.
I guess I was afraid that if I tested larger groups at a time because I might be wasting my marketing dollars.
Thanks!
By the way if you only have a farm of 1500 try knocking doors. 50 doors a day wont take long. You will be surprised at the response. make sure you have a brite card to leave. And dont forget to tell them about your bird dog payments
I am mailing to several groups of about 1500 homes. I am doing s series of letters and post card campaigns.
Instead of knocking on doors I have been doing reverse number lookups and doing cold calling. I called about 10 or so from my list of identified distressed homes within my farm areas. I go some that were nice and said no and some slammed the phone down before I finished my sentence. But one was potentially a good lead I will be pursuing.
I hate being told no! But I just keep reminding myself that every no leads me closer to the YES!
Well good luck
how in the world could you knock on 50 doors in one day. first of all, where i live there are only about 20 lispendens in the town and in the surounding towns you are lucky to find 3-5. this is within a 40 mile radius. to knock on 50 doors it would take about 4 days and be about 400 miles of driving. I would like to know where you are able to do this because i will move there.
Ryan
Ryand I think he means that he goes door to door.(Every door) Not just N.O.D.s.
Every door has got to be the biggest waste of time...not to mention a killer on the breaks...might as well deliver papers.
anyway...knocking on 50 doors of "potential" motivated sellers is way out there...if your knocking on 50 doors of motivated sellers you must be saying something wrong hahaha
So what youre saying is if youre farming the only method of contact is a letter. I am sorry to tell you but knocking doors works. If you expect to get a 2% return on direct mail, that is 1 prospect every 50 contacts.
besides it happens to be the cheapest form of advertising. [ Edited by IBuyHousesInc on Date 05/07/2005 ]
I think knocking the doors is the most effective way to find if your a good speaker. Anymore I get as many by referral as I do by all other methods.
Walking next door on my latest aquisition I found out who on the street is interested in selling, who is elderly and may be interested and who is renting etc.
The follow up every 3-4 weeks is ideal with Direct mail. I get 2-3% and send out 1000 at a time.
Randall
[addsig]
You should always do a six pack after all presentations...
And a six pack isnt a beer either,
Its when you knock the two doors on both sides of the appointment and the 3 houses across the street. [ Edited by IBuyHousesInc on Date 05/07/2005 ]
NIce! I will have to remember the "six pack"
I have it listed for 165k I had one bite at 145k but they did not move any further!
taxes are 3500 year.
insurance is 2000 year
New roof 2 years new gutters
I pay gas hotwater & heat. Tenants pay electric...
Located in nice small city community. Gloucester City NJ
My cash flow is good, but what does the value become for an investor?
According to the numbers you provided on this property the list price of $165,000 would actually be fine. If you run the numbers through RentIncome.Com, you get a 8.21% cap rate, 7.97 GRM, 1.29 DCR, 7.91% cash on cash return (assuming a 30 year fixed @ 7%, 20% down) and a cash flow of over $3000 a year. Essentially, the Proforma Statement would look decent to a potential investor willing to buy the property.
[addsig]
like an arts & craft store, good idea.
#2 is kind of like an incentive to motivate them to make sure there rent is paid on www.time.maybe i could tweek it some more