Read my other posts about direct mail, one of the strongest real estate investment tools I use.

4 Critical Reasons To Use Direct Mail

4+ Tools for Direct Mail Efficiency

Every neighborhood, no matter how upscale or low-income, has a homeowner(s) who is having financial troubles and is falling behind on their mortgage payments. Those are the people you want to reach, before they contact a realtor or are in foreclosure. Some neighborhoods have more homeowners with mortgage problems than others, so look at rates of foreclosures, trends in employment and so on.

Watch for a future post on choosing who to send your direct mail letters to.

Start with mailing those that just got into the foreclosure process. You can get this list from your title company or a list broker. Send out a standard form letter to everyone on that list. Contact is better than no contact! It does not matter that most of your letters will be thrown away, only that from 1% to 3% will get a response that could result in two to three profitable deals per thousand letters. This is how to be the hunted rather than the hunter.

So, what do you say in these direct mail letters?

Some investors send out a very short, personal letter:

“Dear Mr./Ms. [Last Name],

My name is Joe Smith and I buy property in [Town Name]. I am interested in making an offer for your property at [address]. I am available to talk to you at any time at [phone, email and/or mailing address].

Sincerely,

Joe”

Another strategy is just the opposite – a longer, more formal letter, discussing the options for someone who is facing possible foreclosure (or just wants a quick and easy way to sell). Some investors recommend an educational letter up to 3 pages long. See the “Long Letter Example” below this post.

And then, just like The Three Bears, you could choose something in the middle – several bullet points with their (bad) options (bankruptcy; allow the foreclosure; etc.), followed by the option to sell to you, with your contact information, spaced across one or two pages. See the “One-to-Two Page Letter Example” below this post.

Your objective for the letter content:

• Create a need by describing the downside of NOT selling to you for cash. Don’t be entirely negative, as that tends to erode trust, but make the other positive options of minimal benefit.
• Give the best solution to the need you just described: A quick and easy sale to you for cash. Explain how the seller is better off with this solution as they move on with their lives.

ALWAYS conclude with a “call to action” – for example “Call me today to discuss how My Company can help you get away from this financial burden!” Your call to action will tell the homeowner exactly what to do, and how, with a phone number and perhaps an email address.

The short letter example is in the text above – and two more examples are below. Remember that with a 2% to 3% response rate, the more letters you send, the more deals you will find!

Watch for a future post on tailoring letters for specific targets, such as vacant property owners, FSBO’s, expired listings, and more.

Long letter example

“Homeowner Name
Address
City, State Zip
Date

I Have The Answer To Your Mortgage Crisis

Are you in financial distress because of your mortgage? Are you missing payments because you lost a job, or have high medical bills, or other money problems?

Many Americans are in the same situation! But you do have choices.

Bankruptcy
Foreclosure
Sell to an investor
Apply for a loan modification
Refinance
Negotiate with your lender to list your home as a short sale
Contact a credit counselor

Bankruptcy can help some consumers who are overwhelmed with bills such as medical and credit card. But… bankruptcy stays on your credit report for up to 10 years and could keep you from moving forward in life. [Add additional details about bankruptcy.]

Foreclosure will happen if you stop making your mortgage payments and stay in place until the bank takes action. But not only will you almost certainly lose your home, you could also end up still in debt to the bank for … [Add additional details about foreclosure.]

… [Add details about foreclosure.]

There is another option! Would you prefer to save your credit rating – avoid foreclosure and bankruptcy – and get out from under the burden with a quick sale to XYZ Investors?

We buy homes in any condition, anywhere in the ______ area. What’s more, we can act quickly, and get you out from under the burden before your credit report starts showing delinquencies.

[Add more reasons that XYZ Investors is a positive outcome for a bad mortgage situation.]

So call me at XXX-XXX-XXXX, or go to www.yoursitewithoptinbox and opt in to learn more about how we can help you out of a tight spot in your finances. We’ll be happy to schedule a time to meet with you, view your home, and let you know what we can do to help.

I look forward to hearing from you,

Your Signature”

One-to-two page letter example

“Dear Mr./Ms. [Last Name],

If you have overwhelming bills and expenses, if you are missing payments on your mortgage … we need to talk immediately about how I can help you out of your mortgage crisis.

You have choices that can save you from foreclosure. You can solve your mortgage problem right away, without having to go to the expense and hassle of listing your home and dealing with all the requests for repairs and upgrades.

Option #1: Let the bank foreclose. This can be a long and painful process, and in the end you can still end up owing the bank for a shortfall against what you owe – even though you have lost your home. And, at some point you may be told to move out on very short notice, and you may lose whatever possessions you can’t move in time.

Option #2: File for bankruptcy. You may still lose your home, and a bankruptcy is on your record for as long as 10 years.

Option #3: Ask your lender to do a short sale for less than what you owe – or a refinance – or a loan adjustment. Each one of these options requires a great deal of paperwork from you, and a bank process that can take months (while you still owe monthly mortgage payments). The bank makes all the decisions and you are at their mercy. Loan changes means the bank looks carefully at your income and other debt. And after all of the time and trouble on your part, they may refuse any and all of these options.

Option #4: Sell your home to an investor like myself, as-is, for cash, close quickly and get the bank off your back. Go on with your life without a foreclosure or bankruptcy on your record.

MyCompany Investments can answer your questions about Option #4 today!

Call me at XXX-XXX-XXXX, write me at, or go to www.yoursitewithoptinbox and opt in to learn more about how we can help you out of a tight spot in your finances. We’ll be happy to schedule a time to meet with you, view your home, and let you know what we can do to help.

I look forward to hearing from you,

Your Signature”

 
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