Here are four very good reasons why I use Direct Mail to contact property owners:
- Direct mail is easy to use. All I have to do is sit at my computer, point and click, hit a couple of keys and it’ll crank out one of my standard letters to property owners that just needs to be signed, folded and inserted into an envelope. I use Microsoft Office Word 2003 that can merge names and addresses with letters. And, I use window envelopes so I don’t have to fiddle around addressing them.
- Direct mail is relatively cheap to use. I’m a penny pincher. Direct mail gives me the most bang for my buck. For example, I can mail out one hundred letters first class mail for right under $60. This includes the cost of letterheads, envelopes and postage, the whole shebang.
- Direct mail is quick. I usually get responses from owners interested in selling within two weeks from the date I mailed the letters out.
- Direct mail is effective. It allows me to make direct contact with owners of small, mismanaged rental properties without having to go through third parties such as real estate agents.
There are many more inexpensive property search and lead generation methods for rental properties that don’t require your physical presence in order to be effective, but which allow you to be at the right place at the right time by:
- Using the Internet.
- Placing classified property wanted ads in daily newspapers.
- Mailing letters to owners of vacant properties.
- Obtaining insider information on properties that aren’t advertised from your own spy network of paid informants, commonly known as bird-dogs.
- Paying finder’s fees to people who tell you about properties that you buy.
Develop an Aggressive Five-Pronged Property Search Plan
In order to beat your competitors to the most profitable properties in your local real estate market, you need to develop an aggressive property search plan that involves the following five property search methods:
- The Internet
- Property Wanted ads
- Finder’s fees
- Direct mail