Finding quality investment properties can be challenging especially for newbies in the real estate world. You may find yourself relying heavily on MLS (multiple listing services) but we bet you didn’t know that you can actually use direct mail marketing to find investment properties.
It is one of the proven effective strategies for real estate investors to locate the right property to invest in. Here’s a quick guide.
Direct Mail Marketing in Real Estate
Direct Mail has always proven itself to be one of the most reliable strategies for businesses to generate valid leads, establish or strengthen customer relationships, and improve retention. According to the 2018 Response Rate Report, direct mail response rates come in at 9% to a house list and 5% to a prospect list. It delivered higher response rates than all forms of digital advertising.
Direct Mail Marketing in real estate can help investors find potential investment opportunities by marketing to sellers. Unlike its digital counterpart wherein your advertisement is exposed to a wide audience, direct mail allows you to connect with specific audience segments and craft messaging that audience is most likely to respond to. Thus, improving the overall response rate and closing more valid leads.
To build your direct mailing list, here are a few common target audiences you should look into:
- Properties in pre-foreclosure
- Probate or inherited properties
- Vacant homes or properties in poor condition
- Absentee Property owners (out-of-state)
- Banks with REO properties
- Seller-financed mortgaged properties
- Long-time property owners (30 years or more)
- Properties with no mortgage
- Owners with tax liens or tax deeds
If you’re targeting local properties, you can identify your ideal investment zones and visit these areas to find potential homes you want to target. Then, do your due diligence to determine which ones are qualified leads and find the best contact person for these properties and their primary mailing addresses. If this feels a little overwhelming or you are looking to target a specific area, you can purchase a list from a reputable source. Or consult experts like us at OverflowWorks.com.
Building a qualified list is just the first step. Next is to plan and develop your direct marketing campaign. Determine the format you want to use (postcards, letters, brochures, etc.), how often you want your audience to receive mail from you, and your message.
Create a marketing campaign that gets seen. You want your message to be concise and direct to the point. It should be visually appealing, attention-grabbing, and easy to understand. But don’t get too pushy.
Find the balance between awareness and engaging them to act fast. Never force the property owner to reach out to you. But rather, make sure your message conveys empathy and provides a solution to their pain points.
Always aim to leave a good impression. The goal is to consistently be in the back of their minds so when they’re ready to sell, they’ll remember to call you. If you’re considering direct mail marketing for your real estate business or want to take your strategy up a notch, talk to us at OverflowWorks.com and we’ll help you!