>>> QUESTION: Is direct mail a good way to reach note holders today?
>>> MY ANSWER: Yes, definitely. Direct mail is THE best way to reach “Mom and Pop” note holders who now make up 90% of the seller-financed note market because you can easily find their addresses and key information about the notes they are holding through list providers who carefully screen them from public records and then publish custom lists. These are the people we’ve always historically targeted throughout our 20-plus years in the business, and with note creation up 76% overall since the Great Recession “officially” ended in 2009, we are now seeing enormous profit opportunities for note investors.
You can easily reach every private note holder that exists through direct mail when you use a list like this, because it gives you the ability to specifically target the exact notes you or your investors want to buy. And also, with direct mail, you’re not competing with other note brokers on a search results page, so there is also nothing else to distract the note holder away from your message. For these reasons, direct mail actually much more cost-effective per quality response than the website/SEO method– especially when it comes to good notes.
All of this makes for an easy time in building your brand and credibility with known note holders.
A caveat: To ensure the integrity of your mailing campaign, you’ll certainly want to be sure that the list you’re using is a good one. A good quality list will have been screened for the exact criteria that makes for investment-grade notes, i.e., lower LTV, property type, the right amount of seasoning and many other variables. It’s also important that the list only includes names of people who are actually holding a seller-financed note.
That last point is really important, because lesser-quality lists have been known to include some names that will never be bona fide prospects due to inferior screening. So be sure to properly vet your leads supplier and you’ll get optimal “bang-for-buck” from the list.
One more thing: Make that your list reflects the CURRENT mailing addresses. You don’t want ‘return to sender’s. In order for your message to be effective, it needs to reach its intended prospect.
In the next post, I’ll expound on this a bit further, and I’ll also give you what I feel should make up the basics of a good direct mail program.
P.S. If you want to see the leads list that I use, you can find it here.