No LUCK with Short Sale Mailings
Remember these two basic realities...
1. Return on direct mail is less than 1.5% So, if you mail out 100 pieces you generally receive ONE RESPONSE almost not worth the effort...
2. 70% of all homeowners that have been foreclosed. Never reached out to find out what their options were.
maybe... they are experiencing one or most likely all of the following:
Afraid to answer the phone, Afraid to open a piece of mail they don't recognize and are even Afraid to answer the door.
kinda makes it hard to reach these people..ya think!
Any ideas out there...?
Replies to This Discussion
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Permalink Reply by Jim Stewart on
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I was a stock broker with Edward Jones from late 2000 to late 2002 and literally knocked on thousands of doors. Never once did I get a door slammed in my face even though the stock market was totally tanking at that time. Door knocking works and you will be totally amazed by the results. I need to get back in to it again now in real estate!
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Permalink Reply by Ben Benita on
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I will try to keep this short, but, have blogged MANY MANY times about this in the past:
Mailings - correct on a single piece mailing, a 2% response rate is REALLY GOOD, most agents get 1% or less.
HOWEVER - On a 5 piece mail series (send one letter or post card once per week or every other day, you should expect your response rate to go closer to 20%.)
FACT - with regard to ANY sale, most consumers do not say "yes" until after the 4th touch (this is why you should maintian and REACH OUT TO your past clients and ANYONE YOU MEET)
On our 5 piece mail series, we alsways start with a small cheap post card to see if the cards get returned or the Seller has moved on, then, follow up with a series of 4 letters.
HUGE MISTAKE MSOT AGENTS MAKE WITH MAILINGS:
WAY too many agents get hung up on the "per piece" cost of mailings, bragging like:
"I just did a mailing and it only cost me $0.30 per mail piece"
Price is certainly important, BUT, there is NOTHING MORE IMPORTANT THAN YOUR RESPONSE RATE.
Remember your goal with ANY mailing - get the phone to ring.
What if your per piece cost were $1.00, BUT, your response rate were 20% or better, THAT is effective marketing....again, remember your goal.
BEST WAY to get a HUGE response rate (close to 20%) - send "lumpy mail" (put a key chain or some type of small inexpensive novalety item in the envelopo, people will open it out of curiosity).
Other things that work well - Red envelopes - again, people tend to open red envlopes more frequently than any other color
Headlines - also VERY important, 2 of the 5 possible headline types:
1 - Ask a question - "Are you facing foreclosure"
2 - Use a testimonial - "John Smith just avoided foreclsoure by calling me at __________"
3 -
4 -
5 -
I have other tricks, but, can't reveal EVERYTHING!!!!
;-)
Anyway, be smart, get out there and do some type of marketing.....there are TONS of homeowners that need your help
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Permalink Reply by Nate Gerard on
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As a former advertising salesperson, I can confirm that 1-2% is good for mail. I can also personally confirm that door-knocking is the best way to contact people. I do both!
The key with the letter is a colored envelope (as Ben mentioned above), an interesting stamp, and most importantly a hand written address with my personal return address on the back. This gets it opened almost all the time since it looks like personal correspondence. Mail is used to cover my entire county, which is about 45 miles long (I live in the middle).
I then add door knocking for the closest homes and the ones that I really want to list. The key here is to ask questions to get them talking about their situation. Until they understand you care, they feel like you're just someone trying to make money off of their situation. Keep asking questions.
Good Luck!
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Permalink Reply by Jeff Payne on
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Ben, good stuff. You are so correct on the consistancy thing, when we do FSBO mailings, like clockwork, mailer 5 is usually where we see return contact from the homeowner. You are also correct in the fact that ROI is where it is at, not in the cost. My marketing budget target is 10% so if I spend 1000, I expect 10,000 in return or I won't do it. Some have higher marketing budgets but for me the actual number is about 6% so we always beat the target which means I probably should spend more and get more business from it.
Face to face contact is the highest ROI though
Ben Benita said:I will try to keep this short, but, have blogged MANY MANY times about this in the past:
Mailings - correct on a single piece mailing, a 2% response rate is REALLY GOOD, most agents get 1% or less.
HOWEVER - On a 5 piece mail series (send one letter or post card once per week or every other day, you should expect your response rate to go closer to 20%.)
FACT - with regard to ANY sale, most consumers do not say "yes" until after the 4th touch (this is why you should maintian and REACH OUT TO your past clients and ANYONE YOU MEET)
On our 5 piece mail series, we alsways start with a small cheap post card to see if the cards get returned or the Seller has moved on, then, follow up with a series of 4 letters.
HUGE MISTAKE MSOT AGENTS MAKE WITH MAILINGS:
WAY too many agents get hung up on the "per piece" cost of mailings, bragging like:
"I just did a mailing and it only cost me $0.30 per mail piece"
Price is certainly important, BUT, there is NOTHING MORE IMPORTANT THAN YOUR RESPONSE RATE.
Remember your goal with ANY mailing - get the phone to ring.
What if your per piece cost were $1.00, BUT, your response rate were 20% or better, THAT is effective marketing....again, remember your goal.
BEST WAY to get a HUGE response rate (close to 20%) - send "lumpy mail" (put a key chain or some type of small inexpensive novalety item in the envelopo, people will open it out of curiosity).
Other things that work well - Red envelopes - again, people tend to open red envlopes more frequently than any other color
Headlines - also VERY important, 2 of the 5 possible headline types:
1 - Ask a question - "Are you facing foreclosure"
2 - Use a testimonial - "John Smith just avoided foreclsoure by calling me at __________"
3 -
4 -
5 -
I have other tricks, but, can't reveal EVERYTHING!!!!
;-)
Anyway, be smart, get out there and do some type of marketing.....there are TONS of homeowners that need your help
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Face to face (door knocking) has ALWAYS been the best "bang for your buck".
You can order late lists, persons who are 30, 60, 90 days late, to know which homes to visit.
For door knocking - we place ads on Craigslist.org for students or whomever to knock on the doors of these homeonwers (we pay the door knockers a commission if we get a short sale listing for the agents we work with).
We have a VERY SHORT script we have them use, and of course, a DETAILED "leave-behind" flier that they leave with the homeowner outlining the short sale versus foreclosure process, and, how we can help the homeowenr get through this difficult time.
Good stuff....EVERYONE should be doing as Jeff notes and TRACKING your budgets, what is working and what is not....you will find most any top-producing agent in your area doing this.
Fact - Success leaves clues....
Find out who the top producers are, AND TALK TO THEM about what they are doing.
Most will tell you to "kiss-off, I am not sharing my secrets" but, YOU ONLY NEED ONE TO SHARE WITH YOU OR GIVE YOU THE TIME OF DAY AND YOUR INCOME WILL EXPLOOOOOODE!!!!
I have this saying in my office:
"Some will, some won't, so what.....WHOSE NEXT?????"
live by it......
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Permalink Reply by Rick Trono on
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Jim,
In your trading days - Did you have a Plan for your door knocking that you did each week? Did you use "leave behinds" What worked ? What didnt? Did you doorknock every day? Best time of the day ?
I never door kocked... any tips you can share would be greatly appreciated
Rick Trono
Jim Stewart said:I was a stock broker with Edward Jones from late 2000 to late 2002 and literally knocked on thousands of doors. Never once did I get a door slammed in my face even though the stock market was totally tanking at that time. Door knocking works and you will be totally amazed by the results. I need to get back in to it again now in real estate!
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Ben,
Thank you for SHARING your techniques, insights and formula for door knocking sucess!
- we all appreciate it.
Rick
Ben Benita said:Face to face (door knocking) has ALWAYS been the best "bang for your buck".
You can order late lists, persons who are 30, 60, 90 days late, to know which homes to visit.
For door knocking - we place ads on Craigslist.org for students or whomever to knock on the doors of these homeonwers (we pay the door knockers a commission if we get a short sale listing for the agents we work with).
We have a VERY SHORT script we have them use, and of course, a DETAILED "leave-behind" flier that they leave with the homeowner outlining the short sale versus foreclosure process, and, how we can help the homeowenr get through this difficult time.
Good stuff....EVERYONE should be doing as Jeff notes and TRACKING your budgets, what is working and what is not....you will find most any top-producing agent in your area doing this.
Fact - Success leaves clues....
Find out who the top producers are, AND TALK TO THEM about what they are doing.
Most will tell you to "kiss-off, I am not sharing my secrets" but, YOU ONLY NEED ONE TO SHARE WITH YOU OR GIVE YOU THE TIME OF DAY AND YOUR INCOME WILL EXPLOOOOOODE!!!!
I have this saying in my office:
"Some will, some won't, so what.....WHOSE NEXT?????"
live by it......
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Permalink Reply by Ellen Levy on
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I have purchased NOD lists from a vendor . NOD=Notice of Default. I can get them for 30-60-90 days late. I have gotten 90 day lists. I think I will switch to 30 day lists. They may be more rational. I mail out postcards, not letters. I have probably sent out about 4000 thus far. An attorney who negotiates short sales is interested in sharing the next list with me. I have sold one person a $600,000 house indirectly because of the mailing, and just closed the short sale on a $509,000 condo from a mailing. That is probably $30,000 commission income from possibly $3,000 mailing expense. I like those returns.
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Permalink Reply by Craig Bartels on
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Ellen,
Who are you purchasing your NOD lists from? I am trying to find a company that has good lists..Craig
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Permalink Reply by Deidre St. Romain on
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You said it Jeff! People do need your help and tracking is everything! Because I love talking to people face to face that is where I am most successful - it's not easy but it works and the sense of satisfaction from REALLY helping people that would not reach out for help is HUGE - never underestimate that. If mailing is your "thing" and you can keep on top of it with "4 touches", weeding out the bad addresses, etc. good for you! I personally rather go to the door- that works for me!
Jeff Payne said:Ben, good stuff. You are so correct on the consistancy thing, when we do FSBO mailings, like clockwork, mailer 5 is usually where we see return contact from the homeowner. You are also correct in the fact that ROI is where it is at, not in the cost. My marketing budget target is 10% so if I spend 1000, I expect 10,000 in return or I won't do it. Some have higher marketing budgets but for me the actual number is about 6% so we always beat the target which means I probably should spend more and get more business from it.
Face to face contact is the highest ROI though
Ben Benita said:I will try to keep this short, but, have blogged MANY MANY times about this in the past:
Mailings - correct on a single piece mailing, a 2% response rate is REALLY GOOD, most agents get 1% or less.
HOWEVER - On a 5 piece mail series (send one letter or post card once per week or every other day, you should expect your response rate to go closer to 20%.)
FACT - with regard to ANY sale, most consumers do not say "yes" until after the 4th touch (this is why you should maintian and REACH OUT TO your past clients and ANYONE YOU MEET)
On our 5 piece mail series, we alsways start with a small cheap post card to see if the cards get returned or the Seller has moved on, then, follow up with a series of 4 letters.
HUGE MISTAKE MSOT AGENTS MAKE WITH MAILINGS:
WAY too many agents get hung up on the "per piece" cost of mailings, bragging like:
"I just did a mailing and it only cost me $0.30 per mail piece"
Price is certainly important, BUT, there is NOTHING MORE IMPORTANT THAN YOUR RESPONSE RATE.
Remember your goal with ANY mailing - get the phone to ring.
What if your per piece cost were $1.00, BUT, your response rate were 20% or better, THAT is effective marketing....again, remember your goal.
BEST WAY to get a HUGE response rate (close to 20%) - send "lumpy mail" (put a key chain or some type of small inexpensive novalety item in the envelopo, people will open it out of curiosity).
Other things that work well - Red envelopes - again, people tend to open red envlopes more frequently than any other color
Headlines - also VERY important, 2 of the 5 possible headline types:
1 - Ask a question - "Are you facing foreclosure"
2 - Use a testimonial - "John Smith just avoided foreclsoure by calling me at __________"
3 -
4 -
5 -
I have other tricks, but, can't reveal EVERYTHING!!!!
;-)
Anyway, be smart, get out there and do some type of marketing.....there are TONS of homeowners that need your help
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Permalink Reply by Jeff Corporon on
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Gerrett,
I asked him for the Google Ad Words list he used and he has not sent it to me. Would you mind sending it to me? I am only working in the Denver area and would not be a competitor to you.
Thanks,
Jeff
Garrett McCargar said:We have had great success with our mailers offering our "sale date postponement" services with an additional clip referencing "short sale help". Depending on their current situation, we can offer a few services in a package that gets them in the door and keeps them with us for the whole process. Our average is usually around 3% but we have had 4-5% on some months depending on the area and loan amounts we're aiming for. Depending on the states/ regions you are trying to reach out to, you can use sites like foreclosure radar to gather sale date info and addresses (AZ, CA, NV, OR, WA) combined with credit pull NOD/ NOS data with loan info. With both of those combined you have a really good contact ratio with key information.
It is still better to mail in large amounts, so it can be pricey if you only have 1 service to provide, but it's working well for us.The data lists for short sales / mod / trustee sale delay services usually break down into the following 4 categories:
1. Pre-foreclosures: Homeowners that have failed to make their monthly mortgage payments and have been asked by the lender through the County court to either make up the late payments or the County sheriff or a trustee will be asked to schedule an auction of the property. Pre-foreclosure notifications are also known as NOD's or Notice of Defaults and LIS Lis Pendens.
2. Foreclosure Auctions: Homeowners that have fallen behind on mortgage payments and the lender has asked the County government to auction the property on a specific date. Foreclosure auction notifications are also known as NTS's Notice of Trustee Sales and NFS Notice of Foreclosure Sales and Also Sheriff's Sales.
3. REO: These are homes that have gone to County Auction and the highest bid was not accepted by the lender and therefore reverted back to the lenders ownership.
4. Commercial Foreclosures: Properties considered as Business locations and multiple family residential buildings that have received a Notice of Default or Notice of Auction Sale.
While a lot of companies have these types of lists, they aren't very accurate and often have a high ratio of disconnects which will obviously do you no good (if you're trying to cold-call). Because of that reason and dependent on the type of list it is, most short sale / trustee sale postponement companies focus on the data addresses so they can use them for mail campaigns. Mod companies on the other hand don't do much mailers but append records for home and cell phone numbers to call and take a different approach to the numbers game.
Another good idea is building a lasting relationship with a company you feel you can trust that does services you can piggy-back from. As an example, working with a local mod or refi company to "pick up" all the deals they can't service. As example: speak with them and build a relationship to buy their "turn-down" leads that may sometimes be live transfers for much less than they would be if you tried to work directly with a lead company (giving you guys that idea we've been using as a little "here-ya-go" gift)
The borrowers will be a little discouraged they didn't get the "perfect scenario" help they were originally looking for, but sometimes that can be in your favor since they know they may not have many other options available. You may be able to get those leads on a cost per lead basis by buying leads based on filter requirements or do a rev-share backend approach for every lead the give you that actually closes.You can always also try the Google Adword approach too and I can help refer you to a good certified SEO guy I work with and also help provide a great Google Adword lists I got from another colleague I met through this site.
Garrett
949-870-2229-phew.... I feel winded after that one
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Nate - giving out more of the "good stuff", HANDWRITTEN envelopes guys, ALWAYS and without exception....
"Wa wa wa...but Ben it takes too long" -
Well make the time or find someone to do it for you (if you are not willing to do this, quit complaining about your only having 5 or 10 listings).
Door knocking - again as Nate noted, when you order the lists, mapquest and other sites (or a good GPS), can be certain to guide you to your destination via a few of the homes on your NOD lists....make the time, make it happen
"Wa wa wa.....but Ben I do not like to knock on doors"
Well, then see what I just wrote, quit complaining about only having a handful of listings, and, know that YOUR BEING "UNCOMFORTABLE" MIGHT HAVE JUST LOST SOMEONE THEIR HOME.
ANYONE here that has helped a homeowner get through, and, saved them from foreclosure, can attetst that their hearing from you was ONE OF THE BEST THINGS THAT EVER HAPPENED TO THEM!!!
Something else touched on - MAKE YOUR SCRIPT (and you had better have one) about the homeowner....as Nate noted, if the Homeowner thinks you are in it for your paycheck only, you will hear LOTS of "let me think about it"
One of the BEST books you will ever FIND on marketing -
Any of the "NO BS" book series by Dan Kennedy
and also,
most any sales information you can find from Brian Tracey (just spend 7 minues looking him up on YouTube and see what he has to say about selling).
NOW GO HELP SOME HOMEOWNERS!!!!!
Accordng to general statistics, there are more than 2,000,000 people in this country going to bed tonight HOPING TO HEAR FROM SOMEONE JUST LIKE YOU!!!!
Having been there myself, I would have gladly welcomed someone at my door back in 2005 when I put my family through bankruptcy, we lost 11 properties BECAUSE AGENTS WERE TOO SCARED TO KNOCK ON OUR DOOR!!!!
Think about that, had you knocked on my door back in 2005, BOOOOOOM, 11 property listings dumped in your lap, instead....11 properties lost to foreclosure.....
Anyway, go help some homeowners.
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