How to save soooooo much money and attract buyers AND tenants you want

[TPSG, LLC 3]

Wheww... long title.

 

Okay, so what I do believe is one of the easiest and best uses of money to attract buyers and sellers?

 

Well, it's a lot easier than you think and a lot cheaper than you think.

 

Okay, if you have done your homework, versus blanketing an entire area for houses, hopefully you have picked a certain area or radius that you work in. TRUST ME ON THIS ONE people...do not try to cover the entire city, you will find your deals working you, not the other way around. Althought it is ambitious to go out and try to cover the entire city, I would not recommend it. Remember very carefully that many, many people have become fabulously wealthy just by staying within a 5 minute or so radius.

 

Okay, so let's say you have an area that you work in and like the demographics. But, let's say you can't find good houses or wish you could reach all those people.

 

Here's how you do it...saturated mailings. Some of you might know what this is, so bear with me.

 

Saturated mailings are where you give the post office a whole bunch of postcards or letters that have already been sorted and are along the carrier's route. This means, that all the carrier has to do is drop off one of your postcards or letters to every house on their route. This means that that post office does not have to sort the letters and waste time. WHAT THIS also means is that your rate for postage just went from .37 cents to around .09 per piece.

 

I use postcards, because one, you can get a ton printed for very, very cheap and if you are smart, you can put your message easily on the postcard.

 

Okay, then what? Well, then you go to a place like Melissadata.com and get a saturation list either by zip codes, radius around a certain property, city, county...whatever you would like. Then you select who get's your information...apts, business's or residential. If you are trying to attract seller's, knock of apts and biz's.

 

Then you hit add and depending on your criteria you may have anywhere form 1,000 to 15,000 names. But even at 15,000 names it only costs like $250 bucks for this list. And at .09 a pop for postage, you are only spending about $1350 on postage and another $200-$300 for postcards. Now I realize that 15,000 is a ton so let's say you only do 6,000 names in a smaller radius. So basically for reaching every single person on the carrier's route, you are paying less than $1000 for everything!

 

So if you use a bigger postcard than normal, use some color and good copy, you have now just reached your entire target area for less than TV space, radio space, billboards, magazine ads, etc.

 

In my opinion, it's 10x more effective than newspaper ads and bandit signs combined. The great thing is that you can combine this mailing with bandit signs you place around the area which reinforces the ideas when the consumer sees your sign before or after reading your postcard.

 

THE ONLY note I have for you is this...be careful sending out 10,000 postcards because you WILL get more calls than you know what to do with...I promise.

 

So what about finding TB's? All you have to do is use the same process but think a little. You obviously know that if you have a house in an area you are trying to get rid of, there are tons of people renting around the area, in apts and houses. So what if you sent out within a .25 mile radius of your house 600 postcards in a saturation mailing that simply was geared to getting off rent, no bank qualifying, home in your area...blah...blah ...blah. Don't you think that those people renting in this area would be interested in staying in this area? Uh..heck yeah! And guess what, for less than $300, you can easily send out 600 postcards.

 

Okay, my head hurts...gotta stop getting so excited. Hope this helps some of you and best of luck.

[MichaelC 160]

Chris, hehe, I forgot how much to you like to exercise your gray matter. Again, great post with some terrific ideas for all of us to put into play.

[Guest TK]

What have your specific results been??? And in comparison to bandit signs ????????

 

In other words , when you have used your saturated mailing technique for attracting motivated sellers...what have your response rates been and how many deals per 10,000 mailings...or whatever baseline number you want.

 

Bandit signs bring about one deal per 200 signs for me. Please respond, thank you.

[TPSG, LLC 3]

Time to do some math. How much do bandit signs cost you? How much time does it take to put them out? And how many deals per sign?

 

Bandit signs are great but they are uncertain and don't reach the exact areas you want often or people.

 

You send out 1,000 postcards with the right message for less than $350 and you are guaranteed to reach all the people in your target area with the right message.

 

All I can tell you is that the deals I get for postcards are way more than 1 per 200.

 

Good luck and give it a shot.

[Doug Pretorius (ON) 9]

All I can tell you is that the deals I get for postcards are way more than 1 per 200.

You're telling us that you send out 1,000 cards in a saturated mailing and get more than 5 deals? I don't believe it.

 

In most markets there are barely even 5 houses for sale per 1,000. If we're to believe you, you're buying at least 50% of the houses for sale in your mailing area. If that's true, why are you posting here? You should be out buying a million houses a month!

[TPSG, LLC 3]

Umm, first...you copied my quotes and then you quoted me wrong, because I didn't say anywhere that I get 5 deals out of 1,000.

 

And what's this about 5 houses per sale per 1,000? What farm area to do you live in? I can walk down the street and count 5 houses for sale.

 

And yes, I do get that many people, but what kind of deals they are is what's important.

 

When I send out 1,000 postcards to just renters to turn them into LO tenants, I easily get 30+ solid calls from people interested.

 

When I send out 1,000 postcards to try to find houses around the area, yes I get at least 10+ solid leads from people interested in doing a lease option. So why is that so hard to believe? My marketing is damn good, my message is solid and I'm going after the people in the area that I do business in.

 

More signs or more money does not equal more good leads...good marketing and smart thinking equal good leads. And last, you don't send out 10,000 postcards because you couldn't handle the business and would be going crazy. So the name of the game is not to see how many leads you can bring in...that's easy, the name of the game is how many quality deals you can do and live up to your reputation. I could easily bring you or anyone else 30 good leads a month but you wouldn't know what to do with them...heck, ask Adam if you don't believe me. I believe he had set his goals at "x" amount per month and realized that those numbers were unobtainable.

 

And last, you either become a person who works for the hours or you make the hours work for you. Why spend 40-50 hours a week doing Real Estate when you don't have to. If you are doing that, then you might as well go to back to the job that you didn't like because you worked too long and didn't have time for anything else.

 

I spend 10-20 hours a week on stuff, quality deals, and they make up for everything.

 

Like I said, damn good marketing is the key, as well as living up to what you promise people.

 

Hope that helps.

[Guest TK]

I get one deal per 200 bandit signs ... I market for deals not leads. So, once again to be blunt...how many deals do you get per 10,000 or 100,000 postcards. DEALS not LEADS. How many ?????????? Sorry for being so abrasive and caustuic but used to live in the la-la land of leads AND unfufilled possibilities...on 50 bandit signs a week ...that go direct to and answering service...that asks them 17 questions(AP/LB/Why/When ect...) even after they give up all of that private info to a complete stranger...95% of them are worthless.

[Guest Guest]

Be blunt all you want but make sure you know what you are asking. You're looking for me to tell you a magic number that will make you think this is worth it. If you are looking for some justification for this, then just do it and stop asking me what the results are...I've told you. And when you say you market for deals not leads...what the heck do you think a deal comes from? A deal is made from a lead and if you're looking for people to just land in your lap and say, "oh my god, you have to take my house at whatever cost, you're my savior" you're crazy. A good salesman/RE Investor will be able to take any warm lead and turn it into a deal.

 

I've sent out 1,000 saturated mailing postcards, oversized, and got 8 deals. I've sent out 1,000 postcards and got 2 deals. We're only talking $350 here, so even one frickin deal is going to completely make up for anything.

 

For renting or LO the property, I sent 1,000 postcards saturated and oversized to apt renters and easily got 50 or more people calling back to find out more and easily 10-15 who qualify.

 

Hope that helps, but you don't seem to understand that it depends on the market and what I am hunting for. If I wanted to, I could easily send out 6,000 postcards and easily get 50 deals...but why? I won't be able to handle them all, so I do 1,000 postcards with perfect marketing to get the 3-5 deals that I can easily focus on. Unless you had 5 assistants working for you who knew what they were doing, you couldn't handle the interest from 10,000 correctly marketed postcards.

 

And since I co-own a large sign shop and can make all the bandit signs I want, I know exactly what signs cost. And whether you are using coroplast or weatherboard, you are still looking at around $450 for 200 double-sided 18 x 24's and little less for 12 x 18. And think how many of your bandit get thrown away or never seen. Why would you waste your time doing that? Makes no sense to me. Think about how many "Need to Sell Your House?" postcards you get...NONE and that's my point.

 

Send postcards, make them interesting, put a deal on there. Partner up with a local pizza shop (or any other shop) and tell them you'll send out postcards to the surrounding community and pay for it if you can put a discount for their pizza shop on there. And think about if you send this out to current renters? You'll get their attention, trust me.

 

Good luck.

[TPSG, LLC 3]

That was my post, which brings me to a good point.

 

Michael, is there anyway that it tells us we have to log in before we can post something? I think it would make more sense if everyone had to log in or have an account before posting, save a lot of trouble if you ask me.

 

Just my two cents

[Craig 0]

Christian:

 

That was a great post thank you. Direct mail is a tuff business but you bring some good messages to the table. Don't stop bringing the ideas. Its a open board and we need lots of brainstorming here. Ever investor finds their own way they prefer.

 

When starting out most of us are careful on how are money is spent. When I inquired about mailings I surely was not getting .09 cents postage. I was told I would need to do a listing of 1000 to see any savings at all. So my thinking was if I really target my market to people who have a house for sale or a FSBO I have all ready increased my interested market to 100% not 1-2 percent as I would get with a saturation list.

 

Please don't stifle good information brought to the board. Somethings work for some. If you don't want to try it that's fine. As investors we must listen carefully.

[TPSG, LLC 3]

Thanks and understood. Direct mail, especially saturation mailings can be very, very good if done right and for cheap.

[Guest Guest]

Thanks and understood. Direct mail, especially saturation mailings can be very, very good if done right and for cheap.

 

My intention is not to stifle 'good' information. If you can mail 1000 postcards, and get anywhere from 2-8 deals...please consider selling your system to myself and others.

 

I'll take you at your word and if you can show everyone on this board ...how to suck-in 50 deals from 6,000 postcards or even 10,000 or 15,000 or 20,000 I'll give you 50% of my gross, not net profits.

 

New information is valid if it withstands being scrutinized, and is proven to be valid and applicable in the down and dirty world of snaring M.S.'s.

 

New info that is inaccurate or inflated to absurd levels is excruciatingly dangerous... because if someone follows your advice and gets no deals (strong probability based on my experience and many others)...they may personalize iot and call it quits. 2000 postcards generating 10 deals as you state...is verrrrrrrrryyyyyyyyyy....... whatever.

 

And butting heads and disagreeing is imperative if one wants to learn and evolve . My meager opinon, is your numbers and results are ludicrous and should be challenged and not to call you out ....is a disservice to one and all.

It's only my opinon...worthy or not....Relax and engage.... you should feel validated that I take the time to challenge you. Maybe you are right...notttttttttttttttttt. Just kidding

 

One last ,blunt thought...any chance you can share your strategy with a little bit of specificity in a generic way...if that makes any sense...just a taste/tease...what do the postcards say ...how many repeat mailings how often and does the copy change from mailing to mailing...I've spent thousands of pesos on direct mail ...and your results are intriguing. I'm not saying direct mail doesn't work because it does...it's a very hard way to make a living...large mailings live off 1/2 of 1% response rate in mant instances...your numbers are staggering...especially for a high-ticket item like houses...

If you tell me how you do it... then I'll tell you and whoever else is interested...how to get 1 deal per 200 signs...12 by 18 ...200 times $1.50...$300.00 and that includes wooden stakes and another $200,to have a mule put 'em out at 3:00 at night...deal????????????

[Guest Guest]

Thanks and understood. Direct mail, especially saturation mailings can be very, very good if done right and for cheap.

 

My intention is not to stifle 'good' information. If you can mail 1000 postcards, and get anywhere from 2-8 deals...please consider selling your system to myself and others.

 

I'll take you at your word and if you can show everyone on this board ...how to suck-in 50 deals from 6,000 postcards or even 10,000 or 15,000 or 20,000 I'll give you 50% of my gross, not net profits.

 

New information is valid if it withstands being scrutinized, and is proven to be valid and applicable in the down and dirty world of snaring M.S.'s.

 

New info that is inaccurate or inflated to absurd levels is excruciatingly dangerous... because if someone follows your advice and gets no deals (strong probability based on my experience and many others)...they may personalize iot and call it quits. 2000 postcards generating 10 deals as you state...is verrrrrrrrryyyyyyyyyy....... whatever.

 

And butting heads and disagreeing is imperative if one wants to learn and evolve . My meager opinon, is your numbers and results are ludicrous and should be challenged and not to call you out ....is a disservice to one and all.

It's only my opinon...worthy or not....Relax and engage.... you should feel validated that I take the time to challenge you. Maybe you are right...notttttttttttttttttt. Just kidding

 

One last ,blunt thought...any chance you can share your strategy with a little bit of specificity in a generic way...if that makes any sense...just a taste/tease...what do the postcards say ...how many repeat mailings how often and does the copy change from mailing to mailing...I've spent thousands of pesos on direct mail ...and your results are intriguing. I'm not saying direct mail doesn't work because it does...it's a very hard way to make a living...large mailings live off 1/2 of 1% response rate in mant instances...your numbers are staggering...especially for a high-ticket item like houses...

If you tell me how you do it... then I'll tell you and whoever else is interested...how to get 1 deal per 200 signs...12 by 18 ...200 times $1.50...$300.00 and that includes wooden stakes and another $200,to have a mule put 'em out at 3:00 at night...deal????????????

 

One addendum to my previous ...lame post...the percentages I referred to are for leads...not sales.

In other words 1/2 of 1% means one lead for very 200 pieces. And conversion rates on leads vary depending on the price of the item and the quality of the lead...my contention is that at least 95% of my leads, from any source are unfruitful or useless. I mean we're talking houses here. Once again just my intellectually challengeg opinon and I don't purport to be an expert I'm just going my results and those of many other players who collectively have done hudreds of deals ... a lot more than I have.

 

Once again I amd abrasive because I want to generate your strongest response...as far as the info you got...it's not personal...really...and I admit to having an excess of jerk in my so-called personality.

[TPSG, LLC 3]

I completely understand what you are saying and don't care about the abrasiveness, but what I am trying to get across is that it all comes down to marketing, area, and the person doing the deals.

 

I don't know how else to say this. It takes a person on average about 7-8 of seeing a piece of marketing before it sinks in or they act on it, plus depending on who the mailing is sent to and what times of year, etc factors in a ton. There are places in the world where bandit signs make a killing and there are places where newspapers ads are the only way to go, etc.

 

My stuff works ONLY because I know my market, have good marketing techniques and go after the people I want. This DOES NOT mean my stuff would work in your market unless you have exactly the same demographics, market appreciation, home sales, age levels, and mind set. That is why so many people get varied results with courses like Carlton Sheets, etc all over the country because it all depends on the market and who else is already doing the same thing.

 

BUT what I can tell you is what I know and what can improve dramatically your results.

 

First one - color. Yep, color is the number psychological factor in a sign, in a response. You wouldn't be interested in a car you absolutely love if it was pink, you wouldn't eat a green steak even if it was supposed to be amazing, and you wouldn't pay attention to a "We Buy Houses" red and yellow sign if you are used to seeing these signs all over and all the time. So first you need to study up on color and how it affects peoples decisions.

 

Second one - Psychology. The other huge factor. Human emotion is involved with every single decision you make, especially emotional ones. And buying/selling any type of property is an emotional decision for most of the people you will work with. So, if you really want to be effective and really get all the good deals you want, you HAVE to figure out what exactly is your target market. Who are you exactly trying to attract? What is their age? What problems are they having? What would stop them from calling you? What reservations could they possibly have? Do they instantly view your ads as a possible scam? All this leads you to understanding exactly who you are going after. If you don't want to do this, then you won't get good leads and easier deals, plain and simple. It's like hunting or fishing or golf for that matter. In any one of these sports, you HAVE to know the fish you are going after, what it likes, what it eats, when it sleeps, what it is afraid of, etc. If you don't know this then all you are doing is sticking a hook into the water. Same with golf, you have to know the terrain, know how you hit each club to understand exactly how to approach each shot. So in a sense you have to become and know your target in order to effectively market towards them. Pick up a couple good psychology and marketing books and go to town, you'll learn a ton.

 

Third one - Effective repetition. Huh? It means that you effectively hit your target over and over again and the right times. Enough to not annoy them and spread apart so you are reinforcing their thoughts over time, not all at once. When do you people sell the most houses? When do people NOT sell the most houses in your area? What types of houses and areas are not moving so fast, etc? Most ads on TV and print are usually geared toward a specific purpose or time AND over and over again to retain in your memory. Convertible ads in the summer, vacation packages in the winter, diet fads in the spring and summer, blockbuster movies in December. They all have a purpose and they are all done effectively over and over again with specific intervals and certain areas to hit right target over and over. You want to hit your target over and over again but at the right times to keep you fresh in their mind somehow when they DO decide they need you.

 

Fourth One - Knowing what the heck you are doing. I could throw 10 deals at a newbie and 99% of the time they wouldn't have a clue what to do. What good is a lead if you don't know what to do with it? The reason that people can't get great deals is that often they don't know how to create them. If you get 20 people calling you, then obviously they are interested and if you can't make deals out of least 5 of them then you need to work on your understanding of what you are doing and learn more until you get it right. If you are calling them, different story, that takes real skill to turn a cold lead into a hot one...but if you get people calling you? Man, there is no reason that at least 50% or more of those leads should be deals...no reason. But again, if your marketing is effective and to the point and targeted to who you want, then those calls are already motivated and prescreened customers.

 

And to be truthful, there are hundreds of people out there who will tell you they have the best way to attract this or attract that...but the honest truth is that if you don't know who you are attracting and why and what you are going to do with them, then your efforts are wasted completely. You are essentially pissing away time and money.

 

Learn your market, learn your customer, and learn your approach....you will be deadly.

 

Be the ball Danny, be the ball.

[Craig 0]

Christian:

 

I have been following this thread carefully. I admire you for standing up with your own thoughts and ideas. This past article you wrote hit the nail on the head. People should read this article very carefully and apply it to their personal marketing.

 

I really enjoyed reading your ideas on color in marketing. When in college I had a few courses in color and the effects on the mind and body. You are so correct. Thanks again.

 

Why is your logo BLUE? I might think RED might get a better response to get the seller motivated... Just a thought...

 

Craig Warner