Direct mail and online ads are some of the most effective marketing techniques for finding motivated sellers. The problem is that they are both very expensive. So how can you market for motivated sellers on a tight budget? It seems that all things related to real estate investing can be solved with either time or money. If marketing budget is an obstacle then use your time.
The first thing is to target a geographical area. We’re not targeting lists here – we’re targeting areas. A big benefit of geographical marketing is that you will find motivated sellers that are not even on any list – for instance there is no list for the retired widow who is moving in with one of their children and just wants to get rid of the house that is in bad repair. When you canvas a geographical area, you’ll find these sellers and because you are their only bidder, your profits will be larger.
The area you select should be older – 25 -40 years old is great. It’s a seller’s market right now, so what you’ll find is that many of these homes are being renovated and resold at much higher prices. This is gold! Often these are working class neighborhoods and many of the residents don’t have extra funds to keep their house up in tip top shape. Over the years it degrades and now when they want to sell, they have to make many large repairs and they can’t afford it. This is perfect for investors.
One of the least expensive ways to market to an area like this is with flyers. You can have 1,000 printed up for under $100 (hint – go to a pak n’ ship place rather than a big box office supply store – it’ll be less expensive). Have them print black ink on bright colored paper. I prefer black on yellow.
As for the marketing copy on the flyer – you have a full page so tell a story. Start with a headline in large bold font that will grab their attention if they have any inkling to sell. Then tell them how you can help them. Answer the question in their mind: What’s In It For Me? Be sure to also weave into your story what makes you different? Why should they contact you? And be absolutely positively sure that you have your phone number listed several times in large bold font. A reader should be able to spot the number without having to re-read the flyer to find it. Finally, I am a big proponent of branding. So have your brand name (even a logo) displayed on your flyer so recipients can tie all your marketing together.
Then distribute the flyer in your targeted area. You can walk up to the door and roll the flyer to place it between the door handle and the jamb. I find that takes a lot of extra time. Instead, look for ways that you can stay on the street. Some people place their marketing in a plastic bag with a few pebbles to hold it down and throw it on the driveway. Some will tack the flyer to the mail post. In and on the actual mailbox is illegal. Never ever open someone’s mailbox. I have only heard of a few Postmaster Generals around the country, however, that have an issue with you placing the flyer rolled up between the flag and the mailbox.
Let me say that distributing 1,000 flyers like this is no fun and will take you a few hours. Frankly, doing it just once will probably yield little results. You need to be consistent and distribute every 3-4 weeks. If you are willing to put in the time and the effort though, you’ll find a few deals and then you’ll have money to invest in other marketing which will leapfrog your business.
Good luck! Tell me what you think below.
Expect abundance,
Lou Castillo
