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.
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Had an accounting background but learned about construction from his father; they partnered together on the first deal Started with a 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 the 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
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Bull’s Eye Tips:
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:
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
Growth and Controlling Quality
Best Place to Grab a Bite in Boston:
Oysters in the North End
Connect with Justin:
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