Founder of reSimpli and MaxProperties starts his direct mail journey!
So starting with new year, I plan to start doing Direct Mail Marketing (DMM). As I am sure is the case with every market across the country, my market has gotten very competitive and in order to keep the deal flow going I am planning to start doing my own DMM.
I am an active investor in Lake County, Indiana market and I currently purchase my properties from monthly foreclosure auction, other wholesalers and MLS mainly.
A little background about myself. I started investing in 2010 and purchased my first investment property (a 2-plex) in Aug 2010 (I still own that property). Since then I have purchased several other rental properties. Currently, my business is focused on selling turnkey properties to other investors and fix and flip to homeowners.
So getting back to my plan to document my DMM journey, my goal would be to accomplish following few things:
1) Keep myself accountable – This seems to be the primary difference between a successful and not so successful marketer. The investor who keeps himself accountable and sticks with his/her plan to keep going at it is the one who ends up with deals.
2) Learn a lot and teach a little – By documenting my journey I will be able to better track how my campaigns are going and this will help me learn from all the good and bad things that are happening. In process, I hope some of the other newer investors will learn a few things as well
3) Join the many customers that have been using reSimpli direct mail successfully and increase the amount of deals coming into my pipeline.
What about my financial goals from the marketing campaign? So this is what I plan to achieve finally from the marketing campaign:
So I plan to start out with about 6,000 mailers per month and by end of year average to 10,000 mailings per month and on average I will spend 50 cents/mailer between postcard and letter so my total spend will be around $5,000/mo which comes to around $60,000 for the year.
Now on an average deal, a wholesaler in my area makes around $10,000/deal so for me to break even I will need to do at least 6 deals.
But if the point was to just break even, then it doesn’t make sense to do any marketing because then I would be better off just buying these properties from other wholesalers.
In order to get actual ROI on my marketing campaign I am setting my goal at 12 deals in 2018 which will bring my gross to $120,000 minus $60,000 in marketing cost which brings my net to $60,000 in profit.
I live in Carlsbad, CA but I invest in Lake County, Indiana market. I have a project manager in place that will be checking out any promising properties along with my contractor on my behalf. As for answering calls, I will be answering some of the calls myself and outsourcing when I am traveling or busy with other activities.
So my plan will be to update my journal at least once a week every week and I will be sharing all the numbers related with the direct mail marketing side.
Your can follow my adventures at Max Properties, the first company I founded, here as well. This blog on reSimpli will focus on using reSimpli for direct mail. The other blog is focused on my real estate business that provides turn key properties for investors. I’ve been acquiring those properties via other channels of acquisition previously.
Contributor: Sharad Mehta