Posted by ScottE on May 03, 1999 at 14:15:08:
Bill,
Sounds reasonable next to your newspaper costs.
Thanks for the information and good luck.
Scott
Motivated Sellers - Posted by Lonnie Turner
Posted by Lonnie Turner on May 03, 1999 at 09:32:08:
Has anyone had any success using direct mail as their main source for motivated sellers. For a month or so I have been sending letters out to probate & divorce notices in our legal papers. i have also sent letters out to death notices in our daily papers but I have got a few call back but npo deal yet. My goal is to do flips deals with these people or doa L/O or a pure option if they don’t like my all cash quick closing proposal. What have been other people experience in working these markets? As always any comments will be appreciated. Thanks in advance!
Lonnie Turner
Re: Motivated Sellers - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on May 03, 1999 at 10:30:49:
Lonnie,
I recently sent 134 letters to out-of-state owners of property in my town. It elicited 2 responses. One of which was a pre-foreclosure that I hope to close on Wednesday. I am now going to send the same letter to in-state owners of property in my community in hopes of getting a similar response. I will be sending close to 600 letters in this campaign.
It’s a numbers game. You can expect about a 2% response rate. That’s only 2 responses in a hundred letters. From that, you might get 1 deal, but that’s typical for direct mail. I feel that it was successful.
I’m going to try door hangers as well. I’m planning to have 10,000 hangers delivered within the next couple of weeks. From that, I expect to get 50 responses. From those 50, I hope to make 2 or 3 deals. If so, I’ll consider this successful too.
Keep plugging away. You’re on the right track.
I hope this helps.
Bill K. (AZ)
Re: Motivated Sellers - Posted by Redline
Posted by Redline on May 03, 1999 at 12:15:55:
Bill -
Wow - that’s some campaign! Have you tried an ad in the local paper? If so, how did it go? If not, how come? (just curious …)
RL
Re: Motivated Sellers - Posted by ScottE
Posted by ScottE on May 03, 1999 at 12:03:58:
Bill,
Who do you use to get out 10,000 door hangers? Can you share what your expected investment of designing/producing and delivery of these hangers will be?
Thanks!
Scott
I Forgot to Mention - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on May 03, 1999 at 14:08:49:
RL,
Neither of those 2 sellers calls turned into a purchase. So, I didn’t create any cash flow based on that newspaper campaign. I’m not going to quit advertising in the local paper, but I want to see if other avenues will produce better results right now.
Bill K. (AZ)
Re: Motivated Sellers - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on May 03, 1999 at 14:02:48:
RL,
I ran an ad, daily, for a month in the local paper; four lines costing $1,030. I was searching for motivated sellers, but got many more calls from potential buyers. So, while I now have a good database of buyers, I’m still looking for the homes to put them in. We’re in a strong seller’s market here. It’s going to take many more contacts to find those motivated sellers.
By the numbers, the newspaper ad brought me 2 calls from sellers and 21 calls from buyers. I wasn’t overly impressed with the results. So, I’m trying other avenues this month.
Bill K. (AZ)
Re: Motivated Sellers - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on May 03, 1999 at 14:11:09:
Scott,
I contacted a local company I found in the yellow pages under “Advertising”. The company is named “Good Deal Advertising”.
The cost for printing and delivery of 10,000 door hangers will cost me $0.16/home.
Bill K. (AZ)