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pilot76180

Contacted by 13 Sellers in One Day!

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I'm not sure how many of the peeps on the board here have been to my site where I post blogs and videos, but last week I posted a video of me preparing to send out a mailout to sellers.

Apparently sellers started getting the letters today, because I've had 5 sellers e-mail me wanting more information, and 9..yes 9 calls from sellers wanting information on utilizing our program.

For those of you with a GED, that's 14 sellers contacting me today to use our program. :lol:

I figured I would get 30 houses conservatively with this mailout in the next 60-90 days, but I am now thinking it will be more like 50-60 houses!

The nice thing about the SELLERS calling ME, is I don't have to sell them anything. I spend 3 minutes on the phone and get the data I need.

I am actually a little concerned over how to keep up with the demand. Maybe I went overboard with the mailout!

If there are people here who want to build a solid business, please don't miss the last opportunity this year to meet with MC and I in November.

Stop wishing and MAKE IT HAPPEN!

Fire your boss people!

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I usually turn about 70-75% of the contacts into deals. It could be higher I guess if I pushed them and really tried to sell them, but I don't .

I market to listed owners off the MLS.

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I usually turn about 70-75% of the contacts into deals. It could be higher I guess if I pushed them and really tried to sell them, but I don't .

I market to listed owners off the MLS.

 

Man as a real estate agent myself. That would be a hanging list if I mailed to them. Not too long ago I did a mailing to an area that I wanted to buy houses in. I had the usual disclaimer telling them that I am an agent with so and so agency. I also added the line that this is not an offer to LIST your property. I even went as BOLD in saying that they could keep this card for future reference or they could give it to there real estate agent.

 

I had one agent that got real mad and made all kinds of threats. Threats like these are usually unfounded. I wish I had recorded it. it was one of those conversations that you really enjoy hearing over and over again.

 

I am glad you are getting those kinds of responses. 14 calls you had. How many mail pieces?

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Ok..I started this thread as "13" sellers, but by the time I finished another had called, so it was 14 by the time I finished, then 2 more e-mailed last night...whew....

I sent out almost 7k pieces, which is double my normal mailout.

Granted that is an absurd mailout, but I'll get enough houses from that mailout to last me a while.

I've had 4 more calls today and 2 e-mails.

Sellers will actually hold on to these brochures for a year and still be calling me.

The cost of this mailout came down to $1500 for the bulk mail rate and I paid about $300 to have someone prep it.

The brochures cost me about $600.

So, some of you all may be gawking at the cost I spent, but if you look at the cost of about $2400 I spent, look at the return.

I'll get a solid 50 houses in the next 90 days or so, and I'll likely get at LEAST another 30 or more over the next 6 months.

If you figure we get a MIN of $3k per house, I'd say that was $2400 well spent.

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John, that's a great return on your money and time! $2,400 is minimal when you look at the potential cash the mailing will bring in, both short term and over the next several months to a year. It's an investment in your business and a good one.

A few questions that you have probably answered before. But for a less than sharp tool such as myself, as well as any new members who might not want to raise their hand, let me ask you again:

 

1) how many mailings like this do you do and how far apart do you space them?

2) did you hire out someone to create the brochure?

3) I know you are targeting listed properties specifically. Why properties that are already listed versus FSBO's? Like Jonathan Rexford mentioned, doesn't that irk the local Agents? And where are you getting your list of listed properties? Is there a double Agent, (pun intended :lol: ), on your payroll?

4) are you also targeting a specific geographic area?

5) what about type of property: cost, amenities, etc. Or are you just casting as wide a net as possible and then weeding out the ones that don't work for you?

 

Great info, John. Thanks for sharing!

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He he...you said "tool" hehe

I normally do about 4-5 smaller listings per year. Keeping inventory up is key.

I've let it fall before and it sucks. The lower the inventory, the few calls you get from buyers.

It's like having a car lot with 3 cars...nobody stops to look.

I created the brochures, and I send them off to be produced in mass, and I have a person that produces the labels and cross references them to tax records.

I pay someone a few hundred depending on the #'s to put the mailings together.

I target listed properties because of the number of them out there. I do FSBO sometimes using a service that sends me leads, but there are so many listed that I hit them.

I target houses within my county. I can hit specific zip codes though and can reference my zip code map on my wall.

I can also target price, which I normally hit between $100k and $350k.

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That is great John and congratulations on your success. It is motivating and great to see someone doing what they teach. And to have someone teach what they do is golden! You have set up your business model in a way that is truly unique.

 

I don't think I have heard many investors market that hard to listed properties, and man there is a bunch out there that's for sure. It is always FSBOs or FRBOs. I have always looked at real estate listings as a stay away zone. Not for any legal reason, but from simply having a complaint filed against me from a disgruntled real estate agent, as I am not a licensed agent/broker. I know that there is nothing wrong with sending a mailer to a listing, but my state REC likes to jump all over you if a complaint is filed and try to push you into court if you are an investor. I have already gone through it too.

 

I typically try to stay under the radar somewhat and I know that results in my business being less visible. I think if I could get over it, I would have the potential to bring in more leads.

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Steve, I understand your sentiment about keeping a low profile and away from the gaze of Agents and the local real estate bigwigs. I share them to some extent. But whenever I have an Agent contact me, (and it's rare), because I contacted a client of their's, I reply that I sent out a mass mailing and their client just happened to be on the list. End of story. They hang up and I never hear from them again. I suspect John may reply similarly, but I'll let him respond to that.

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Thanks for the reply MC.

 

This can surely open up the market for me. I guess the key is to make sure the seller has canceled their listing or that it has expired before going under contract. I know John is probably in the toughest regulated state for L/Os and he is getting the job done.

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Actually, Steve, I don't think John even waits for the listing to be cancelled. He'll be by sometime today when he sobers up to explain. :P

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Well, my flask is empty so I thought I'd pop in here.....

I don't wait for the listings to expire.

If agents call me, they want to know 1 thing. How do they get paid?

If you see the houses on my site, I would venture to say that 75% of them are currently on the MLS with an agent at the same time.

I think its partly how you approach it.

I dont' do exclusive contracts and I approach it as "I'm here to help, don't cancel your listing because you want every pole in the water"

IF and agent calls and is mad, just do as MC said. "Sorry, the investors I work with and my company send out thousands of brochures, and I even get them myself sometimes" click...

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If agents call me, they want to know 1 thing. How do they get paid?

Didn't you say they don't get a cut of the option fee? Seems like a deal breaker for an agent focused on "pay me".

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If the agent calls me about my brochure then I let them know that our company pays half of one month's payment to them, and if they want to get paid on the sale, that's between them and the seller, as I dont' track it, so it's up to them to follow up with the seller a year down the road.

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