Direct mail marketing to specific categories of home-owners that are more likely to be motivated sellers may be the best use of your marketing budget. Here some great ideas on how to market to targeted list:
Plan your marketing campaign
- Target Market: Choose your mailing list by the type of property owner you want to reach.
- Your Sales Message: Your message needs to be:
My name is _________ I am interested in buying your house at _______. We buy houses in your neighborhood and we are looking to buy more. You can sell your house as is at a fair price and close on a date of your choosing. Please call me for a fast evaluation and offer. We pay all closing cost. Call __________!
- Direct mail: Is the best preforming and most cost-effective method of reaching property owners. Personal looking letters and postcards work best.
- Budget: You will will need to invest $1,000 to $2,000 to get one deal that could net you $25,000+
- Multiple Mailings: Always plan to mail a given list 5 or more times using postcards or letters. Mail monthly or every 2-months. Get new list every 6-moths to a year.
Mailing List Targeting
Probate: The Trustee is often motivated to sell the property to settle the estate. Mail to the executor, trustee, all the heirs and the homeowner of record. Mail often because the sale might not happen until the estate is ready to settle months after the case was filled. List brokers sell these lists.
Bankruptcy: Targeting homeowners who have filed Chapter 13 bankruptcy. They may not be keeping their repayment agreements and might need to sell their house. These homeowners are many times desperately trying to protect equity. You’ll find very little competition as most investors do not target bankruptcies.
Divorce: Divorce is often stated as the reason someone needs to sell a property. Divorce actions are filed at the county court house, you may need to go down to the public records and make your mailing list.
Property Tax Delinquent: Homeowners who are delinquent on their property taxes for 1 or more years are good prospects. Tax auctions are held most every month at the county court house. Get the list early and contact the sellers before the sale. If you buy at the auction be sure to drive by the property before bidding, all sales are final.
Code Violations: Target owners of condemned houses and properties with code violations. Check with your city government offices for a list.
Vacant Houses: Some cities keep a list of vacant houses. Cities have begone top pass ordnances that require a permit if a home sits vacant for an extended length of time.
Expired Listings: This is a list of homeowners whose property was recently listed on the Multiple Listing Service (MLS) but expired or withdrawn without being sold. If a property did not sell it is because of price or condition, just what you are looking for. You get the list from the MLS through a real estate agent.
Pre-Foreclosure: Homeowners who are behind on their mortgage and facing foreclosure. They have a Notice of Default or les Pendens filed publicly. Sometimes they’re motivated to sell. Mailings to the pre-foreclosure market is highly competitive. There’s opportunity in skip tracing an owner when a mail piece comes back marked “vacant” by the post office.
Targeting for Equity
Direct mail allows you to target houses with equity to generate leads that have more potential creative financing options. Target property owners with mortgages that are ten years old or older. The seller could finance the house for you, or do a wrap, or some cash now and payments with no interest and so on.
Low Price Properties: Cheap houses are older small houses or often built prior to 1990. Target older neighborhoods and low tax value properties in the county records. This type home is hard for owners to sell with a Realtor and are often owned free and clear. By as rentals or buy and re-sell carrying the notes.
Paid off homes: This is a great niche look for owners with 50% to 100% equity. 30%+ of all single-family homes are debt free with even more having high amounts of equity. By buying with creative financing and getting creative with a seller’s equity you can always give the seller their price. Find them, using mailing list brokers and tapping into your local county tax assessor records. Look for property’s owners who have owned the property for 10 years or more.
Multi-Family: If you’re interested in buying rental properties, target owners of properties with 2 or more units who have a maximum loan to value of 70%. They may be tired of dealing with property management. They may like the idea owner financing your purchase, deferring taxes on capital gains and collecting note income instead of net rental income. You can get this list from the tax office or purchase the list.
Absentee Owners: Non-Owner-occupied houses, this is a list of homeowners whose tax bill mailing address is different from the property address. It includes people who own more than one house and landlords who own multi properties. You can buy this list or get this list from county records, mail letters or postcards every 90 days.
James E Glasgow