Posted by Heidi W on June 03, 2002 at 18:33:27:
Matt-
If I was H-Bent on a mailing campaign, I’d recommend you try FSBO’s first and see what kind of response you get.
It could be problematic trying to work a L/O deal with a realtor involved. They’re not going to give up their commission that easily (would you)and you’ll be putting your seller in a tough position (ah, gee - I really like my realtor, and I don’t feel like losing face with him/her just to get this payment covered now and possibly have a sale at today’s price in 4-10 years.)
Having said that - I think mailing to FSBOs would be relatively unproductive. Mainly - because there usually aren’t enough FSBO’s available in any market to get adequate return. If the average direct mail response rate is 1-3% - you’ll have to send out 100 letters. Plus - they say - that any mailing campaign needs to be 3-7 mailings at minimum. So you’re sending out 300 letters (to the same 100 people.)
So let’s say you could find 100 FSBO’s to mail to, and you get 1 or even 3 calls back. What are the odds you’ll turn it? Not good - I’d guess.
I’ve run ads for L/O and the MAJORITY of my calls were curiosity seekers - not motivated sellers.
What I’m trying to say is…instead of investing time and money on mailing to a ‘hot segment’ namely the FSBOs - I’d take that same effort you put into finding the 100 FSBOs to begin with and CALL THESE PEOPLE up on the phone.
You’re guaranteed to talk to more than one person.
I made 20 calls today, talked to 7 people, 5 had already sold, 1 wasn’t a good prospect, 1 has potential and we’re going to the next step.
Good luck!
Heidi W
P.S. - An extra added benefit to making calls is that feeling of accomplishment that licking stamps can never quite match. Nothing like actually talking to sellers. It makes you feel like you’re really in the investing business - deal or not.