I’ve mentioned numerous times that I’ve found many real estate investing opportunities through direct mail. Of course I do a good deal of business through foreclosure auctions, and I search the classifieds to find fixer-uppers to buy. But I want to talk to you more about direct mail, what it is and how it works. Why should you add direct mail to your arsenal of real estate investment tools?

You may be wondering – is direct mail the junk mail I find in my mailbox? The answer: Yup, that’s what it is. So why should you look into this?

• One of the keys to success in this business is finding people in trouble on their mortgage payments BEFORE the bank forecloses. Once the foreclosure process start:

o there are many more complications with the lender;

o it will be harder to buy at your below-market target purchase price;

o for those reasons, the property may no longer be a viable project.

• Before the foreclosure has begun the homeowner has a strong motivation to sell now, as-is,below market,and so avoid having a foreclosure on their record.

• When a homeowner who is falling behind on payments sees the walls closing in, not just on their finances but also on their home, they are far more open-minded about reaching out for a lifeline.

• Once the property is in foreclosure you may or may not be able to purchase it, and the lender makes the decisions through a profoundly slow administrative process.

You may find for-sale listings for pre-foreclosures and short sales through various channels. But the ideal connection is talking with a homeowner before they have started the listing process, or even spoken with a realtor.Someone out there has a problem – but how can you find out who they are and let them know how you can help?

You have to put your lifeline in front of the homeowner so they can make that exploratory call!

Direct mail is one of the best ways to reach these troubled homeowners, in my experience.Yes, most recipients are going toss your flyer immediately – and that’s ok. Your interest is the small handful who will say to themselves “maybe I should at least give them a call”.

Not everyone will call the number on a sign stuck on the side of a road at a busy intersection proclaiming “I Buy Houses” (although signs are also useful and I recommend using them). Responding to a mail flyer seems more solid to some people – and many people like having the printed piece of paper in their hand while they dial your number.

Direct mailing is an important part of the real estate investment process. Check my next blog post for more information on direct mail programs and maintaining mailing lists, tools that require the least amount of work and time on your part for the most effect.

Have you targeted areas for direct mail for your real estate investing?

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