Direct mail in Real Estate is a great way to find good investment properties below market value.
The first step in Direct Mail is to find areas where you want to invest. My favorite area is very often close to where you live. You tend to know these places better. What the prices are, what streets, people like, where the bus stop, where the schools and service locations are etc.
When I find an area I like, I go there and look for properties that I think the owners might want to get rid of.
Signs of motivated sellers: poorly maintained houses, grown up gardens, trashy lawns or even abandoned places.
I write the addresses of those houses down, then use the address to value the property and find its owners. The best tools for this would be sites like Zillow.Com, Google and your local county s property appraiser.
Once you have the owner’s address it’s to send them a mail where you tell them that you would like to buy their property.
Few owners will want to sell their properties to you and the ones that does will most likely need some convincing. I recomend you find multiple propertys to mail on and then mail those owners over and over again.
The avarage response rate looks like this:
1st Contact: 2%
2nd Contact: 4%
3rd Contact: 6%
4th Contact: 10%
5th Contact: 81%
Keep sending a mail every other month for as long as the houses you are interested in remain abandoned or un maintained. Once you start getting replies you will have to start negotiate. Make sure to know what you want to pay and always try to get the seller to give you a price first.
I made a video about Direct Mail too. Click and watch it below.
ps. here is a link to a provider that can help you automate the mailings: