Heading into 2020, the most effective marketing strategy to source off-market deals remains to be direct mail, according to Justin Silverio. He founded Open Letter Marketing in 2016 to help investors with better direct mail marketing solutions.
An investor himself, he’s tried various strategies with direct mail for real estate to develop a system that delivers results. In this episode, we speak about the secrets to a successful direct mail campaign, pulling strong mailing lists, and tips for going direct to seller.
Key Insights
Had an accounting background but learned about construction from his father; they partnered together on the first deal
Started with foundation in direct mail to control deal flow
Direct mail takes time, view it as a long-term campaign, not a one-off
Consistency and a strong lead list are the two most important components to create an effective campaign
Direct mail is still the most effective marketing strategy to source off-market deals
Expect the first acquisition to take 6-8 months
Pull different lead lists: absentee owner, equity owners, trust lists, tax liens, driving for dollars, code violations, fire list
SUPER LEADS: properties on multiple lists - spends most time on high quality leads
Response rate: 0.7 - 1% on direct mail
If hiring a company for direct mail, make sure you match yourself with a company that truly understands real estate investing
Typically, you select a template and send it to your lead list
When going direct-to-seller, get comfortable taking the calls and navigating the conversation
Use higher cost methods for commercial investments, more professional - use a FedEx delivery
Proactively address concerns - such as timing for a 1031 exchange
Bull’s Eye Tips:
Apparent Failure:
Understand where you went wrong and adjust. As an example, he hired a contractor, who forged his license and insurance. Now, Justin calls the insurance company to confirm they are covered.
Most Recommended Book:
Traction by Gino Wickman
Most Recommended Digital/Mobile Resource:
Slack
Daily Habit:
Prioritizes daily tasks
Wish I Knew Starting Out:
The path to a successful company is not a straight line
Wish I Knew 12 Months Ago:
Plan for 12 months down the road, not just the immediate future
Current Curiosity:
Growth and Controlling Quality
Best Place to Grab a Bite in Boston:
Oysters in the North End
Connect with Justin:
Website: openlettermarketing.com
Email: justin@openlettermarketing.com
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