{"id":1140,"date":"2017-06-02T02:00:40","date_gmt":"2017-06-02T09:00:40","guid":{"rendered":"http:\/\/olddawgsreinetwork.com\/?p=1140"},"modified":"2017-05-31T17:30:21","modified_gmt":"2017-06-01T00:30:21","slug":"106-how-to-use-direct-mail-to-find-great-apartment-deals","status":"publish","type":"post","link":"http:\/\/olddawgsreinetwork.com\/106-how-to-use-direct-mail-to-find-great-apartment-deals\/","title":{"rendered":"106: How to Use Direct Mail to Find Great Apartment Deals"},"content":{"rendered":"<h2 class=\"w-blog-post-title entry-title\"><div class=\"smart-track-player-container stp-color-dd8c11-EEEEEE\" data-url=\"http:\/\/traffic.libsyn.com\/olddawgsreinetwork\/ep106_fff_51.mp3\" data-background_color=\"#EEEEEE\" data-image=\"http:\/\/olddawgsreinetwork.com\/wp-content\/uploads\/2016\/06\/PodcastLogo.jpg\" data-download=\"true\" data-color=\"dd8c11\" data-title=\"106: How to Use Direct Mail to Find Great Apartment Deals\" data-artist=\"OLD DAWG'S REI NETWORK\" data-social=\"true\" data-social_linkedin=\"true\" data-social_pinterest=\"true\" data-social_email=\"true\" data-speedcontrol=\"true\" data-uid=\"UCw5E2m7\" data-download_id=\"212fe2a41ce01c0e18927a6c36ad47cb\" ><\/div><\/h2>\n<h2 class=\"w-blog-post-title entry-title\">SHOW NOTES FOR EPISODE\u00a0106 \u2013\u00a0HOW TO USE DIRECT MAIL TO FIND GREAT APARTMENT DEALS<\/h2>\n<p>One of your goals in finding great properties is to purchase an \u201coff-market\u201d deal significantly below market price.\u00a0 And although most people say brokers are the best source for\u00a0off-market deals, EVERYONE is\u00a0pursuing\u00a0brokers for the same purpose. \u00a0In this episode, Bill explains how direct mail can also be\u00a0a\u00a0powerful strategy for\u00a0finding great off-market deals.<\/p>\n<h2>Introduction<\/h2>\n<p>Your goal in finding a great property to purchase is to get an \u201coff-market\u201d deal.\u00a0 And although, most people say they find off-market deals or \u201cpocket listings\u201d from their commercial broker, EVERYONE is trying to get their broker contacts to give them their off-market deals.\u00a0 In today\u2019s highly competitive environment, you need to find other sources for these deals.\u00a0 In episode #093 with Michael Becker, entitled \u201cWorking With Brokers and Finding the Best Off-Market Deals,\u201d Michael outlines in great detail how to get those off-market deals from brokers.\u00a0 Also, on my episode May 10<sup>th<\/sup> Blog Article entitled \u201c10 Best Ways to Find Great Investment Properties\u201d I share a number of ways you can find off-market deals, of which direct mail is one.<\/p>\n<p>Direct mail is relatively easy to do, low cost and can be easily targeted.\u00a0 A typical campaign can cost you $1 per letter (sometimes less) and, if done properly, can yield you a 2-5% response.\u00a0 So, for $500 you can mail to 500 highly targeted apartment owners and should get anywhere from 10 to 25 responses.\u00a0 If just one of those responses ends up in a deal, that $500 was a cheap investment.\u00a0 I know people who are just starting and some who have large organization looking for 2-300 unit apartment buildings that do direct mail.<\/p>\n<p>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.<\/p>\n<p>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\u2026. to find the really great \u201cdiamonds in the rough.\u201d<\/p>\n<p>Here are the basics of Direct Mail.\u00a0 Keep in mind, with direct mail, results may vary and you need to continually test and track your results.\u00a0 Revise, test and track again.\u00a0 And repeat.\u00a0 Over time, you will eventually find what works well for you.<\/p>\n<p>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.\u00a0 Put an ad in craigslist to recruit.\u00a0 Pay 10-12 cents per envelope.<\/p>\n<h2>Who do You Mail to?\u00a0 –\u00a0 Determine Your Target Audience<\/h2>\n<ul>\n<li>First you must determine where you want to mail\n<ul>\n<li>In your hometown?<\/li>\n<li>If, out-of-state or out of your area, hopefully, you have done your market research and determined your top 3-5 target markets<\/li>\n<li>Once you know where, narrow down your \u201cwho?\u201d<\/li>\n<\/ul>\n<\/li>\n<li>People who are most likely to want to sell\n<ul>\n<li>Someone who has owned the property for many years<\/li>\n<li>Are older now, self-managing, don\u2019t have the energy to manage<\/li>\n<li>Mom & pop owners<\/li>\n<li>Non-owner occupies<\/li>\n<li>Self-managing<\/li>\n<li>Also, out-of-state owners<\/li>\n<li>Have had many evictions (Housing Court), health violations<\/li>\n<li>Pre- or current foreclosures<\/li>\n<li>REO Bank Owned \u2013 local banks, find head of REO<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Obtain Your Mailing List<\/h2>\n<ul>\n<li>Best is at the County Assessor\u2019s office\n<ul>\n<li>Criteria: Ask for all the 2-4 family owners, All the 5-plus unit owners<\/li>\n<li>Format: Excel spreadsheet so you can sort by field (state, # of units, how long they\u2019ve owned the property)<\/li>\n<li>They will quote you a price<\/li>\n<\/ul>\n<\/li>\n<li>MLS\n<ul>\n<li>Expired listings<\/li>\n<\/ul>\n<\/li>\n<li>Drive-Bys\n<ul>\n<li>Look for places that are rundown or out-of-step with the other good properties in the area<\/li>\n<\/ul>\n<\/li>\n<li>List Brokers:\n<ul>\n<li>Dunhill<\/li>\n<li>Claritas<\/li>\n<li>com<\/li>\n<li>com<\/li>\n<li>Will charge $.25-35 per name<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>You Need to Develop a Letter That Will Get Opened<\/h2>\n<ul>\n<li>Hand addressed<\/li>\n<li>Blue ink<\/li>\n<li>Nice penmanship<\/li>\n<li>#10 envelope (colored)<\/li>\n<li>Live stamp (not metered) \u2013 TIP: crooked stamps get higher open response<\/li>\n<li>Return name and address needs to be personal, not a company. Some say \u201cno return address\u201d but if it\u2019s a new list company, without the return, you don\u2019t know how many bad addresses you bought.\u00a0 And you can get refund for bad addresses on your list.\u00a0 No PO Box.\u00a0 Some say no name???<\/li>\n<\/ul>\n<h2>Sample Letter:<\/h2>\n<p>Date<\/p>\n<p> <\/p>\n<p>Name<br \/>\nTheir Home Address<br \/>\nCity, State, Zip<\/p>\n<p>Dear Mr\/Ms:___________________________<\/p>\n<p>Headline (centered): <strong>I\u2019m Interested in Buying Your Apartment<\/strong><\/p>\n<p>I\u2019m interested in buying your property.\u00a0 Are you interested in selling?<\/p>\n<p>I currently hold a portfolio of properties like yours and I\u2019m looking to add more.\u00a0 As a property owner, I realize that there are a number of reasons why someone may be interested in selling.\u00a0 Everyone has his or her own reason and my question to you is, are you now ready to sell?\u00a0 If so, I am ready to buy.<\/p>\n<p>I can close quickly or delay the closing as long as you like.<\/p>\n<p>Please contact me at your earliest convenience so that we can discuss the sale of your property. \u00a0Call me now at my phone number.<\/p>\n<p>I look forward to hearing from you.<\/p>\n<p>Sincerely,<\/p>\n<p> <\/p>\n<p>Bill Manassero<\/p>\n<p>P.S. To get the best price for your property, call me at my personal number (949-XXX-XXXX).<\/p>\n<p> <\/p>\n<h2>Get the Letter Read!<\/h2>\n<ul>\n<li>Advantage with postcards \u2013 they always get read! – Have a strong headline!\n<ul>\n<li>TEST a postcard!<\/li>\n<li>Fancy, professional vs. more personal, simple card<\/li>\n<\/ul>\n<\/li>\n<li>Do something crazy that attracts attention<\/li>\n<li>Advantage to letter \u2013 can get much more info in there\n<ul>\n<li>Colored letterhead \u2013 goldenrod<\/li>\n<li>Can include a fax-back sheet form or reply card<\/li>\n<li>Can include \u201cgimmicky things\u201d that can get their curiosity to open the letter\u2026<\/li>\n<\/ul>\n<\/li>\n<li>Headline\n<ul>\n<li>\u201cNo Sweeter Experience Than Selling an Investment Property That Has Become a Pain in the Butt!\u201d Include a piece of candy in the envelope (gets higher open rate if something bulky inside \u2013 6-8%) \u2013 Dave Lindahl<\/li>\n<li>A BOLD headline telling them you want to buy their property<\/li>\n<\/ul>\n<\/li>\n<li>First sentence needs to draw into second, needs to draw into next<\/li>\n<li>Some use \u201cproblem, problem, solution (selling to you)\u201d<\/li>\n<li>Sign the letter with your name \u2013 no company names<\/li>\n<li>S. 2nd most important message goes there<\/li>\n<li>Call to Action\n<ul>\n<li>Have two \u2013 one on the PS<\/li>\n<li>Should say \u201cCall me now!\u201d not \u201cI look forward to hearing from you\u201d — STRONG call to action!<\/li>\n<li>Each sentence needs to get them to want to read the next and so on\u2026<\/li>\n<\/ul>\n<\/li>\n<li>You can get help writing this letter if you are not comfortable\n<ul>\n<li>Fiverr \u2013 look for people that are experienced writers of real estate direct mail letters\/ad copy for $5-20 per letter<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>How Many to Mail?<\/h2>\n<ul>\n<li>You don\u2019t want to mail a lot<\/li>\n<li>Start with 2-300<\/li>\n<li>As you refine your mailing effort, make it more effective, you will want to increase<\/li>\n<\/ul>\n<h2>Be Prepared to Respond<\/h2>\n<ul>\n<li>Whether you give them a special number to call, a fax back, email or special website to respond to, make you, make sure you havve someone to answer the phone or get back to them quickly\u2026 otherwise it\u2019s a waste of money<\/li>\n<\/ul>\n<h2>In Conclusion<\/h2>\n<ul>\n<li>This should become a regular part of your marketing efforts, any good deal prospecting effort has multiple ways to create \u201cstreams of leads\u201d<\/li>\n<li>Mail once a month, once every other month, but be consistent<\/li>\n<li>Like clockwork<\/li>\n<li>If you take the time to do it right and just keep pressing forward\u2026<\/li>\n<li>You WILL see results!<\/li>\n<\/ul>\n<p> <\/p>\n<p>IF YOU LIKED THIS PODCAST, we would love if you would go to\u00a0<a href=\"https:\/\/itunes.apple.com\/us\/podcast\/old-dawgs-rei-network-bill\/id1116214379?mt=2\">iTunes<\/a>,\u00a0<a href=\"http:\/\/www.stitcher.com\/podcast\/old-dawgs-rei-network\/000-welcome-to-the-old-dawgs-rei-network?refid=stpr\">Stitcher<\/a>\u00a0or\u00a0<a href=\"http:\/\/bit.ly\/1ZkxExp\">GooglePlay<\/a>\u00a0and\u00a0<strong>Subscribe, Rate & Review<\/strong>\u00a0our podcast. \u00a0This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful\u00a0retirement.<\/p>\n<p>Check out our other podcasts at\u00a0<a href=\"http:\/\/olddawgsreinetwork.com\/\">olddawgsreinetwork.com<\/a>.<\/p>\n<p>Get a FREE copy of\u00a0our\u00a0<strong>3-Minute Rental Property Analyzer<\/strong>\u00a0at\u00a0<a href=\"http:\/\/olddawgsreinetwork.com\/\">olddawgsreinetwork.com<\/a>.<\/p>\n<p>Episode Sponsor:\u00a0<strong>Meno Studio\u00a0\u2013\u00a0<\/strong><a href=\"mailto:menostudio777@gmail.com\"><strong>menostudio777@gmail.com<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SHOW NOTES FOR EPISODE\u00a0106 \u2013\u00a0HOW TO USE DIRECT MAIL TO FIND GREAT APARTMENT DEALS One of your goals in finding great properties is to purchase an \u201coff-market\u201d deal significantly below market price.\u00a0 And although most people say brokers are the best source for\u00a0off-market deals, EVERYONE is\u00a0pursuing\u00a0brokers for the same purpose. \u00a0In this episode, Bill explains how direct mail can also be\u00a0a\u00a0powerful strategy for\u00a0finding great off-market deals. Introduction Your goal in finding a…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1140","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/posts\/1140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/comments?post=1140"}],"version-history":[{"count":4,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/posts\/1140\/revisions"}],"predecessor-version":[{"id":1152,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/posts\/1140\/revisions\/1152"}],"wp:attachment":[{"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/media?parent=1140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/categories?post=1140"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/olddawgsreinetwork.com\/wp-json\/wp\/v2\/tags?post=1140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}