Okay, what do I do here? I am a novice investor. I have just sent out my first batch of contact letters to about 100 homeowners who are the subject o f trustee sale notices. The letters went out a week ago. I was surprised to discover that I haven’t had a single response. thought about starting to make personal visits to them, but I work full time so my spare time is at a premium. I was thinking of sending a follow up letter. What would you do?
The success rate for mailing like this is about 1% , 2% if you’re lucky enough. Yes, a followup letter is a good way to followup on your prospect. It’s a numbers game, the more you sent, the higher chances of getting a break in those prospects. when you have any of your prospects calls you…smile ;D, you’re about 50% in getting a deal. But then you have to make sure that you know the market of wherever this property is located.
Going to the distressed homeowner is fine too, if you have the guts and skills to talk to a financially troubled homeowner. You have to be aware the feelings of these folks. The last thing they want to hear is somebody heckling them of their financial situation.
If you are going to play the pre-foreclosure game, I would recommend taking an “equity purchase” agreement to the front door. You letters are just one of many that people get.
I would tweak my marketing campaign and go after the “absentee” owners in your area. You could start by sending out 200-300 letters a week and making
5-10 cash offers to “absentee” owners offerring to take the house with the exisiting tenants in place! Do this and I guarantee you will find some deals!
Let us know how it goes.
Jeff, What is an equity purchase?