One of your goals in finding great properties is to purchase an “off-market” deal significantly below market price. And although most people say brokers are the best source for off-market deals, EVERYONE is pursuing brokers for the same purpose. In this episode, Bill explains how direct mail can also be a powerful strategy for finding great off-market deals.
Your goal in finding a great property to purchase is to get an “off-market” deal. And although, most people say they find off-market deals or “pocket listings” from their commercial broker, EVERYONE is trying to get their broker contacts to give them their off-market deals. In today’s highly competitive environment, you need to find other sources for these deals. In episode #093 with Michael Becker, entitled “Working With Brokers and Finding the Best Off-Market Deals,” Michael outlines in great detail how to get those off-market deals from brokers. Also, on my episode May 10th Blog Article entitled “10 Best Ways to Find Great Investment Properties” I share a number of ways you can find off-market deals, of which direct mail is one.
Direct mail is relatively easy to do, low cost and can be easily targeted. A typical campaign can cost you $1 per letter (sometimes less) and, if done properly, can yield you a 2-5% response. So, for $500 you can mail to 500 highly targeted apartment owners and should get anywhere from 10 to 25 responses. If just one of those responses ends up in a deal, that $500 was a cheap investment. I know people who are just starting and some who have large organization looking for 2-300 unit apartment buildings that do direct mail.
Now, keep in mind, the larger the apartment asset the more difficult it can be to reach that key decision maker via direct mail, especially if institutional investors are involved, but you still never really know.
Nonetheless, it is important to have a multi-pronged marketing approach that will cast a big net and include multiple different techniques that might include regular broker calls, craigslist ads, internet searches, driving for dollars…. to find the really great “diamonds in the rough.”
Here are the basics of Direct Mail. Keep in mind, with direct mail, results may vary and you need to continually test and track your results. Revise, test and track again. And repeat. Over time, you will eventually find what works well for you.
You can get people to do all this for you: from your kids or grandkids who want to earn extra money, older people in retirement homes to professional services. Put an ad in craigslist to recruit. Pay 10-12 cents per envelope.
Their Home Address
City, State, Zip
Headline (centered): I’m Interested in Buying Your Apartment
I’m interested in buying your property. Are you interested in selling?
I currently hold a portfolio of properties like yours and I’m looking to add more. As a property owner, I realize that there are a number of reasons why someone may be interested in selling. Everyone has his or her own reason and my question to you is, are you now ready to sell? If so, I am ready to buy.
I can close quickly or delay the closing as long as you like.
Please contact me at your earliest convenience so that we can discuss the sale of your property. Call me now at my phone number.
I look forward to hearing from you.
P.S. To get the best price for your property, call me at my personal number (949-XXX-XXXX).
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