Given that the real estate market just about everywhere is on fire and nothing on the MLS lasts more than a week I need to try something different. I am going to try some direct marketing. My criteria to pull a list included…
Zip Code, where I want to buy
No mortgage (so I could potentially offer creative terms)
3 bed 1.5 bath
Purchased the property at least 5 years ago (I figured if they just bought it in the last year or so they probably wouldn’t want to sell)
Once I put all of that in it spit out a list of approximately 84 names. Some entities own more than one property on the list. Not a huge amount, which is OK because I don’t want to spend a fortune until I have a better grip on what I am doing.
My strategy at this point is just to start mailing out about 25 letters, hand-addressed per week. I have no idea if this will work or not, but I have to start somewhere. I had a couple of questions I was hoping others with more experience at this would offer an opinion on.
1. Should I mail to entities, i.e. trusts, LLC, corp, etc.? I could argue this 2 ways. One way is these are a bit more sophisticated investors and would be far less interested in doing seller financing. OR because they are more sophisticated investors IF they wanted to sell at all seller financing would be more appealing to lower the tax hit, i.e. they understand. What do you think?
2. Any particular phrases, text, etc. that I should add to the letter that might entice them to call? None of these have back taxes and none of them have mortgages, so I am not sure if any of them are particularly motivated unless there is a motivation that doesn’t show up a list, i.e. rent moratorium, want to retire, etc.
3. Any other tips/pointers that people who generate leads via direct mail would suggest?
When you say stay outside urban areas are you saying go to rural areas, small towns, suburbs, etc. Suburbs are untouchable right now at prices anywhere near sane that will cash flow. If I pay the asking price and get seller carryback with a payment that would amortize over 1,000 years or so I should be able to get it to cash flow, not exactly doable 🙂