As you probably know if you have been reading my articles, I strongly advocate using direct mail to locate highly motivated sellers for your Real Estate Investing business no matter what market you live in and no matter what your real estate market is doing. With the market being in its current state of affairs, there are more motivated sellers than ever before if you know how to find them.
As a seasoned Real Estate Investor I fully understand that I need to be locating the most highly motivated sellers in order to construct the very best deals. Remember, the profit on a deal is made when you buy a property. In addition, while many investors enjoy working with pre-foreclosures, short sales, REO properties and buying houses on the court house steps, these properties take time to close on and there is a lot of competition for them. In the meantime you need to be able to continue to fill your funnel with cash producing deals in order to keep your business moving forward.
Working with motivated sellers that your competition knows nothing about is definitely the way to accomplish this goal and direct mail is the best technique to draw in these very motivated sellers. In addition these mailings are extremely residual, not only do you have deals coming into your pipeline today but you are constantly sewing seeds for future deals. There is no other marketing technique out there that can produce this kind of a result.
If you are a Marketing Magic Student and you have been implementing my direct mail marketing campaigns regularly to locate highly motivated sellers as I suggest one of the benefits you will begin to notice pretty quickly is the residual effect of your mailings. Over the last few months I have personally had many sellers contact me that I originally mailed to months ago. This is because these sellers have held onto my letters and now they want and need to sell and are unable to. There are lots of reasons for this. Perhaps the property needs a lot of repairs or they don’t live near the property and they don’t know how to get it sold. Or perhaps the property is in probate and they don’t know how long the process will take. They may live in a market where houses aren’t selling as quickly as they would like. These sellers are motivated and they are finding it difficult to sell their properties for whatever reason so I have been able to purchase these properties at lower prices and solve the seller’s problem at the same time. You see, when I mail personal looking letters to prospective sellers, folks who are much more likely to have a property they need to sell, they hold on to my letters even if they are not ready to sell at that very moment. One of the reasons they do this is because I tell them to do so in my letter. Then when their situation changes and they are ready to sell they will contact me first even if they have been contacted by someone else in the meantime.
This market has created wonderful opportunities for me and my students to make even bigger profits from our Real Estate Investing businesses. You see another distinct advantage to using direct mail marketing is that it works no matter what your current real estate market is doing. Many of the properties I acquire are in relatively good condition so I may hold onto them as rental properties, lease/options or I will sell them with owner financing. Or we may fix and retail the property. If a property needs just a lot of cosmetic work I may sell that property as a work for equity. Or you could wholesale these properties; you have lots of options when you are finding deals using direct mail marketing. Then as the market continues to increase, as it has already begun to do, I will then sell these properties or have my buyers or tenant/buyers refinance and make big profits on these deals. In the meantime, I rent, lease/option and owner finance these properties, get a good down payment, make a good monthly income from them and reap the tax benefits that go along with it. Then I will get the big check at the end. You can also wholesale these properties if you need cash right now.
Direct Mail marketing gives you options and continues to feed you great deals on a long term basis. When you are a real estate investor you always need to have between three and five marketing techniques in place at all times and one of those has to be direct mail marketing. For more information on locating more qualified motivated sellers and buyers for your real estate investing business using targeted direct mail campaigns, visit Kathy Kennebrook’s website at www.marketingmagiclady.com.