Have a larger budget now. Ideas?

General Real Estate Investing
1

Hello everyone,

I’ve been rehabbing (buying from auction and wholesalers) lately while I was waiting for a couple of notes to cash out and to sell my other business.

Well I finally got some of my cash back and wanted to expand a bit. Wanted another 10-20 houses or so. I’ve done all sorts of marketing from flyers, to postcards, to bandit signs, and I got decent results from all of them.

But I’ve always done smaller amounts (a couple hundred at a time). I wanted to go a little bigger this time. I’ve been told the avg homevestors mkt budget per deal has averaged about 1600/deal over the years and have had two other guys that have bought several hundred houses tell me that their number is between 1500 and 2000.

So I was wondering if anybody out there has any experience with the more expensive medium such as large mailers, billboards, yellow pages, tv or radio. I wanted to spend about $5k this month and was probably planning on sending out 2500 postcards a week for the next 4 weeks.

How do these compare in dollars/deal. How’s the lead time? How many calls can I expect and process? Any other intelligent thoughts will be welcomed as well.

I’m looking for more sub 2’s and can wholesale anything that requires too much cash.

Thanks a million

2

The bottom line is it is not how much you spend on your marketing. It’s about effective marketing that yields results. It doesn’t matter if it’s flyers, direct mail, post cards, billboards etc, it’s all about the return on your investment. Before you spend a huge chunk of change I suggest that you first do a test. If the test is successful then you roll out.

3

I personally think that a billboard for what we do is a joke. We’ve done it. Minimal response.
We also have done a tv ad. One campaign was a winner with a deal. One of them no deal.
The more targeted your marketing is the better…

4

I know someone in the advertising business who says that it’s damn hard to beat the value you get w/ cable tv advertsing.

5

I’ve hear that ‘carrier route sort’ is the absolute cheapest way to send mailers via the post office. You might check into it.