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Hey,
I got a list of about 40 properties from the title company that were distressed properties according to their records and a few from birddogs that I sent postcards to 3 weeks ago.
So far, I haven’t got a single response to my mailings.
Is that normal?
What’s a general rule of thumb (if there is one) for response rate from postcards to a list that “should” be pretty targeted?
Thanks and happy holidays!
-Curt
I get about 5-10% response rate IF I have a really good list.
So, what is a really good list?
If you are targeting wholesale deals, then it would be properties that were bought more than 15-20 years OR MORE ago and never refinanced that are in median or just below median price ranges, that have some other problem like a code violation, dead meter, probate, vacant and run down looking, etc.
I do not market to foreclosures because these days, the banks let people for 6 months or even 2 years without making payments before they start a foreclosure. So, the late payments, penalties and interest are way too high to make the deal profitable. And it limits the exit strategy to cash or cash. You could do a short sale but I hate them because they are too much with with only a 50% success ratio.
If I’m marketing to seller financing or subject to deals.. I target FSBOs and vacant houses with FIXED interest rate loans (if there is a mortgage) at good rates in the median price range homes in zip codes I like. I still market to homes that were bought 10 years ago or more. (in the old days… 10 years ago… you could get away with buying no equity homes but I would not do that today)
Targeting for master lease would be similar to seller finance leads.. except you could do newer loans.. but the house must be in really good condition or the seller must be willing to spend money for repairs.
My guess is the list the title company gave you is no good.
Unless you specified certain criteria, they are probably homes in default that are upside down.
Only with TARGET MARKETING will you get a good response rate.
With programs like Win2Data or RealQuest, there is great search criteria and you can build a very targeted list. There are other programs too but I have not used them
Keep in mind that your initial response rate will be 5 to 10% with a really targeted list.
But you will get calls a month or more later… even a year later from your postcards. This will bump up your total response rate to about 20-25% ( if you have a really targeted list)
The biggest mistake people make it to mail to a list one time. Do at least 4 or 5 mailings to a TARGETED list and you will usually hit people just when they are ready to sell.
They might not be ready when they get your first postcard so they throw it away. But when they get your 2nd or 3rd postcard, they will remember they have seen your postcard before (credibility) and call you
Thanks for the very detailed response Jackie!
I’m looking at the different packages from realquest here, http://express.realquest.com/plans/pricing.aspx
Which package do you recommend and which data points do you search for to create your list?
Thanks!
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