Discover How To Increase Your Real Estate Income By $247,200 By Sending Letters (And The 15 Reasons Why This Works)
How does an additional $247,200 in your pocket sound? What if I told you that number was very conservative? If you start sending out letters to people who own multi-family real estate, you will start getting calls from motivated sellers AND you will start closing more deals.
The numbers look like this: If you send out 1,000 mail pieces a month, which is critical mass in this business (though you can start with a lower number), you should get a 1% response and that is actually good in any industry for sending out letters (direct mail).
That would be ten calls from owners who received your letters. Of the ten, you will have two or three that are serious sellers and, being very conservative, let's say the owner agrees to sell you their property. If you do this once a month, you will have twelve properties at the end of a year. Some months you will buy nothing, some months you will buy two or three.
The minimum amount of equity you will have in a deal (if you do your numbers properly) is $20,000. You should not get into a deal with less equity (and we are assuming this is a three to six unit deal). If you buy bigger deals, you will have more equity.
Twelve deals in one year times $20,000 in equity is $240,000. You have just increased you equity by $240,000! Let’s be conservative and say that each one of these properties cash flows at just $600 per month. By the way, this is the lowest cash flow you should accept for this sized property. This is after all the bills are paid and the mortgage is paid. This is net, net cash flow that goes in your pocket.
Twelve times $600 is $7,200 a month in passive income. At the end of the year you would have $247,200 in additional equity/income.
Give yourself a raise and add direct mail into your real estate business. Below are fifteen reasons why direct mail simply works:
Did you know there are 10 things successful real estate direct mail pieces have in common?
Using these 10 things in your direct mail will get you more motivated sellers calling you. Click here to discover what these ten things are, and where they are placed in an actual example of a direct mail piece. This is working today, getting motivated sellers to call those who send it out.
Click Here to Download the FREE 10-Point Review Direct Mail Checklist
1. Direct Mail is Highly Targeted
One of the most effective parts about direct mail marketing is that it can be extremely targeted to households and individuals in local areas based off of multiple layers of segmentation criteria.
2. Direct Mail is More Personal
In today's digital landscape, digital personalization has lost its flare; when every email and digital ad attempts to reference your name, and more often than not, gets it wrong.
Maybe that's why "70% of Americans say mail is more personal than the internet." Direct mail engraves a message tailored just for your audience. It makes people feel special, in a way that only a direct mailer piece or letter can.
3. Direct Mail is Tangible
Direct mail gives people something to hold on to, which is unique and important in this digital era. Being able to touch, open, and experience direct mail, makes it a more sincere experience.
4. Direct Mail Stands Out
It’s very noticeable when you receive something in the mail, and in fact, many people look forward to checking their mailboxes when they get home. Seeing the bright colors, intriguing messages, and cutting open the mail to see what’s inside is all part of what makes direct mail stick out from its counterparts.
5. People Admire Effort
People take notice at direct mail for the effort it takes to produce it; great direct mail pieces make people look twice.
6. Direct Mail Lasts Longer
80% of people say they can remember direct mail that was sent to them for up to a month! Unlike the digital alternatives, direct mail typically stays in the household after it’s been received; leaving the opportunity for larger impressions and better engagement levels.
7. People Read Direct Mail
Over 90% of households bring in their mail every day, and people spend on average 25 minutes reviewing all of their mail. You can rest assured people are at least reading your mail pieces as opposed to overlooking it in the digital realm.
8. Direct Mail Has Great ROI
On average the DMA states that, “direct mail advertising gives a business a 13 to 1 return on investment”. Although it’s often very difficult to calculate the precise ROI of any given marketing campaign, the long tested record of direct mail proves to be a profitable one.
9. Direct Mail Ranks Highest in Authority
Direct mail outperforms all other marketing alternatives when it comes to authority; for formal and professional services, this can prove to be quite the advantage as being perceived under that expert light.
10. Direct Mail has the Greatest Levels of Engagement
People interact best with direct mail because it’s right in front of them. People are checking their mail and spending up to 25 minutes daily reading it, giving mail engagement levels like no other form of marketing.
11. Direct Mail Offers Less Spam Than Digital
With email accounts now consisting of well over 70% spam , it’s no wonder why direct mail is making more sense than ever to gain those more impactful responses.
12. Direct Mail is More Formal
Mailers offer the ability to present information in the most formal matter, whether with a letter, or a stylized invitation; mailers are subtle and professional.
13. People Hold on to Direct Mail
People will hold onto their mail for months before tossing it away, giving you the extra impressions to create a meaningful engagement with your customers.
14. People Trust You More With Direct Mail
Trust is such an important part of marketing and selling both your product, and yourself. With direct mail, one of the added benefits is the trust component, as stated by Craig Simpson, contributing writer at Entrepreneur.com. He says, "People are suspicious and careful in the online world. This caution is entirely to the detriment of your sales message" he goes on to add, "Consumers are bound to trust your direct mail sales piece more than they would a suspiciously fancy email."
15. Influences Purchasing Behavior Over Other Alternatives, Especially in Baby Boomers
In a recent 2016 study released by Watershed Publishing, direct mail ranked the highest for influencing purchasing decisions among Baby Boomers. If your target market falls into this Baby Boomer demographic, you should undoubtedly be considering direct mail for your next marketing campaign.
