Many investors struggle with low response rates on their direct mailing campaigns because they do not put the effort into finding quality leads and putting the time in to properly screen and pursue each one of them. Too often investors purchase absentee owner leads that are in the hundreds or even thousands and blindly send one handwritten yellow letter to each lead and call it a day. This is not the way leads are converted to deals and it can be extremely costly if not taken control of.
When looking to buy distressed properties that need work you must start with driving for dollars. You cannot use Google Maps as the information is outdated and distressed homeowners’ situations as always evolving. There are a number of characteristics you can see just by driving past a property that would indicate it might be a potential lead such as unkempt landscaping, very old/deteriorated roof or siding, boarded up/broken windows, and other signs of obvious abandonment. These properties should be recorded on your list but not immediately added to your mailing campaign.
All the properties identified through the mailing campaign should then go through a vetting process. The first thing to do is google the property to see if it is currently listed for sale. If it is then it should be removed as it already has market exposure and an off market transaction is no longer possible. The tax records should then be reviewed to see when the last time it was sold and who owns it. If it was purchased within the last 2 years either by an individual or LLC it should be crossed off the list as the buyer is very likely to have purchased it at a discount themselves so they could have it as an investment property.
The remaining list of properties will be your leads which you send mailers to. The most crucial part to remember about sending out mailers is that one hit will never get the job done. Each property should receive no less than 3 separate mailings in different formats. These can include a handwritten yellow letter, and professional typed letter, and a postcard. These multiple inquiries will help the investor build rapport with the potential seller and entice them to pick up the phone and see what the investor is really willing to offer. That is when analyses can be done and offers can finally be made. Contact us to find out how we can help you.