Finding Motivated Property Sellers – My Leaflet Campaign Results

In my hunt for motivated property sellers I recently did a little experiment to see which advertising methods worked best for me and which performed the best cost-wise.

To re-cap, the three methods were:

  • 10,000 A5 leaflets (delivered in my local area)
  • 30 Postcards (in shop windows)
  • 3x5mm advert in local newspaper for one month

And here’s how they fared..

Finding Motivated Sellers – Results So Far

My first campaign this year to find motivated sellers is nearing it’s end and I can now reveal how it’s going so far. To re-cap, for those who aren’t aware of what I was doing, my plan was to use three different methods of advertising to find motivated sellers and see which worked the best for me.

Although this was an ‘experiment’ as such, please use it as a guideline only as all campaign results will be varied according to different factors involved such as;

  • The time of year

  • Distribution area

  • Advertising material

  • The property market situation in at the time

  • Length of time the ads run for

The three methods I tested were:

  • Distributing 10,000 A5 leaflets – I designed and ordered the flyers which cost £59.00 for 10,000. These were delivered to my local area by 7 distributors I recruited from ‘Gumtree’. The distribution took approximately 2 weeks to complete and I paid them £30.00 per one thousand leaflets distributed. Cost in total: £359.00.

  • A6 post cards in shop windows – Originally I had planned to use 30 post cards but I found it very time consuming driving around looking for suitable shops, in total I actually used 22 postcards in various shops, Newsagents, Post Offices, corner shops etc. All placed for ONE month. Cost in total: £44.00 (roughly £2.00 per ad per month)

  • Advertising with the local newspaper – I placed a small ad in my local paper (3x3cm) which ran every day for one month. I noticed there were 4 other investors advertising in the same paper at the same time so the competition is tough. Cost in total: £114.00.

22 A6 Postcards

10,000 A5 Leaflets

Local Newspaper Ad’

Totals

Cost: £42.00

Cost: £359.00

Cost: £114.00

Total Cost: £515.00

Calls: 2

Calls: 12

Calls: 5

Total Calls: 19

Deals: 0

Deals: 1

Deals: 1

Total Deals: 2

As you can see from the table above I received a total of 19 calls from the campaign. I reckon I missed 5 or 6 calls which were marked as ‘number unknown’ on my mobile (or the ‘Bat Phone’ as I call it!) due to not being able to answer it for one reason or other – another good reason to use an ‘All Day PA’ !

From this I can conclude that I won’t be using postcards again, it’s not the first time I’ve tried it, I had the same results from a previous postcard campaign….so that is dumped!

I received 12 calls re the leaflets, one of which got me a deal as follows:

A lady called Lynn rang to say she needed a quick property sale because she’d divorced her husband last year and he was pestering her for his share of the property sale because he had a lot of debts to pay off. I won’t tell her whole story (it was quite shocking) or I’ll be typing for a month lol (I’m a good listener!) but to cut a long story short Lynn and her two children were planning to stay with her mother until she was offered a council house – she’d been told by the local council she couldn’t be re-housed until her property was sold.

The property was a 2 bed semi in the LE5 area of Leicester (ex local authority) and wasn’t on the market with an Estate Agent, she said she’d been meaning to put it on the market but hadn’t gotten around to it so decided to call me when she received my leaflet.

After speaking with her for a while (quite a while!) I arranged to go and see her the next day. It was an ex local authority property in fairly good condition, it needed a ‘paint job’ but was a nice little house (brick structure) with a conservatory and a good sized garden. It could’ve done with a new kitchen but for rental purposes it would suffice with a good clean.

Lynn said it had been valued at £95,000 last year by an Estate Agent, I said I’d do some due diligence and get back to her asap with an offer. The good point was that there was no mortgage on the property, and the vendors were going to split the proceeds between them. Rental value is £475 – £500 mth.

After DD I found it was actually only worth around £88k so I called her back and gave my reasons for this and said I could offer her a very quick sale with all legal costs paid for £66k (25% BMV) She said that was too low and would have to speak with her ex husband and get back to me, so I left it at that and thought that was another dead deal. BUT she called me back exactly one week later and asked if I could go any higher, I said I’d speak to my director and call her back ( a chance for me to work out how much more I could offer)

I already had an investor interested in the deal, friend and colleague Anthony, who I’d met a couple of times at the Derbyshire Landlords meeting over a year ago, he’d recently been in touch saying he was looking for deals in Leicester (he lives in Newark) so I called him to see how much he was willing to pay. He was very interested, had the deposit ready and said to offer £68,000 (which was about 22.5% BMV) so I called her back and said this was the best we could do and reassured her it would be a very quick sale.

Again she said she’d have to speak to her husband but called me back the same day to say they’d accept £68,000! I gave Anthony the good news and we agreed I’d get a ‘finders fee’ of £2k , he said he’d get his solicitor to send out paperwork for her to sign the same day (my finders fee would be written in to the agreement and sent to my account by the solicitor on completion of the sale) and appoint a solicitor for the vendors.

The vendors signed the legal paperwork and the sale is now going smoothly. Anthony is keeping me updated and expects to be completing around 15th June. Lynn is happy to finally get her ex husband off her back and has started packing and moving her belongings to her Mums house, she’s planning on taking her Mum and children on a nice holiday. Win Win 🙂

 So… I spent £359.00 in total for the leaflet printing and distribution, on completion I’ll be giving my distributor a bonus of £200 (as promised)  so that leaves a profit of £1,441 , I’d have liked a bigger profit but there’s always the next deal 🙂

Newspaper Ads and a Lease Option

I had 5 calls in response to the ad I put in the ‘Leicester Mercury’ (my local newspaper) one was from a guy looking to sell his one bed apartment, again in LE5, which was almost in negative equity so was an ideal situation for a Lease Option deal.

More about this deal and the versatility of Lease Options tomorrow as it’s 8.15pm and I’m going to relax with a well-earned glass of red now 🙂

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Have a good evening!

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My Campaign To Find Motivated Sellers ….So Far

To re-cap on my last post, I’m using 3 different strategies hoping to find motivated property sellers then I can see which method has been the most cost effective and produced more leads.

The three methods are:

  • Distributing 10,000 A5 Leaflets in my local area
  • 30 A6 Postcards in shop windows
  • An advert in the local newspaper, 6 nights per week for 1 month

So far this week (since Monday 2nd April) I’ve had 5000 leaflets go out, the rest will be delivered early next week. I’ve used 7 distributors overall and although it’s more reliable to do it that way (the less leaflets they have to deliver, the less likely they are to get fed up and ‘dump them’) it’s harder work on our part as we’ve had to deliver the flyers to their home addresses, which are quite spaced out, go back and collect the ‘log sheets’ when they’ve completed the deliveries, knock a few doors to check they’ve delivered them correctly then go back and pay them. This is obviously time consuming.

I’ve also got an advert running for one month in the local paper and have put 15 post cards in shop windows (15 more still to do next week) – I’ve tended to do this whilst I’m delivering leaflets to distributors as it saves a bit of time.

I knew it would be a low response rate and up to now I’ve only had 3 calls. Two responding to the leaflet drop, one to a shop window ad:

  • One person had their property on the market and needed to sell for full price due to a lot of debt and not interested in anything other than a straight forward sale
  • One looking to BUY a house in his area, I said I’d call him if anything suitable came up and we could do a deal
  • One call re a shop window ad – Lady wanting to put house on the market, not interested in or needing a quick sale. I took her details and passed them on to a local Estate Agent I’m friendly with who said he’ll take referrals and pay me a commission on completion of the sale.

I’m just one week into my ‘experiment’ and intending to take stock at the end of the month around 30th April.

I’m also thinking about trying an Adwords campaign on my website www.sellhousequick.net as it’s something I’ve not tried before. I do understand how Organic SEO and PPC (Pay Per Click) works and could set up my own campaign but it’s very time consuming and I’d much rather leave it to the experts.

I’ve previously spoken to an SEO expert regarding this and was informed that it wasn’t possible to target a specific local area in this way without the cost being extremely high due to it being a very competitive niche, with expensive keywords. Therefore a campaign would focus on the UK in general (if anyone has advice to the contrary then please contact me!)

I’d much prefer organic SEO ratings as it’s ‘free’ but after showing an expert my site recently he said that although the content is good it’s mainly built in ‘frames’ which ‘Google’ and the other search engines don’t like, so it needs re-building with another programme and I’ve been quoted around £1,200 which I can’t afford right now.

Anyway, enough of this boring stuff,  I’ll post again in a couple of weeks to say how the campaign is going, so ‘Bye For Now and..

Happy Easter To You All!Image

How To Find Motivated Property Sellers Using Leaflets

If you’re looking to generate leads from motivated property sellers then leaflets are a must!

There are thousands of people out there who need to sell their property quickly for various reasons ie; financial reasons, repossession, stuck in a property chain, relocating, bereavement, divorce/seperation etc.

Distributing leaflets looking for motivated sellers (people who need to sell their property FAST) is a great way to get to these sellers BEFORE they actually call the Estate Agents. 

 By the time they’ve called the Estate Agent and got the board up it’s too late, the agents have already called their list of regular investors and the deal is gone.

It takes a long time to build up rapport, credibility and get a few completed deals under your belt with your local Estate Agents before you become worthy of being on their investors list.  Until you’ve done this you have no chance of getting the ‘juicy’ deals.

So what can you do? You find them yourself of course!

It’s a known fact that most people need to see something visual to encourage them to take action. So they may have been thinking about selling their property because they’re struggling financially but haven’t actually gotten around to doing anything about it yet.

So when a leaflet comes through their door saying “sell your property now for cash”  this may be all they need to kick start them into action. So YOU get a call before the Estate Agent does. It’s as easy as that!

This actually happened with more than one of the leads I’ve generated. One guy I went to see said he’d seen a programme on the TV about selling property and he started to discuss selling his own home with his wife as they’d been thinking of downsizing as they couldn’t afford the large house they were living in and were having financial problems.

As they were discussing it one of my leaflets came throught the door and they called me straight away! (obviously it was fate, wasn’t it?!)

Then there was the guy I helped with the Assisted Sale recently. This guy hadn’t paid his mortgage for almost a year and had ignored all correspondence from the bank, even though he knew he was in trouble and would eventually get the property repossessed.

The reason he didn’t take action was because he believed he’d have to pay Solicitor and Estate Agent fees to sell his property and he didn’t have enough income to do this. Again he received one of my leaflets saying “Financial problems? Repossession? Help is around the corner, call now and we will pay all your legal fees”  so he called me right away and I helped him to sell his property and also made a tidy sum myself at the same time.

I’ve had people call me from areas I haven’t even distributed to. This is because people may not need the service themselves but they pass the leaflet to someone who does. ie; a family member or friend, who may be on the other side of the city.

This happened to me when a guy called me saying he’d been given one of my leaflets by his daughter who lived in an area I’d recently distributed to. The guy wanted to discuss selling his house quickly because it had been on the market a long time. He had moved out to live with his girlfriend and just wanted to get rid of the responsibility of  paying the mortgage and have some extra cash available.

To cut a long story short, the house (a three bed detached Dorma in a nice area of Leicester) had been on sale for almost a year and had been reduced to £159,950. After negotiating with him for a week on and off I managed to get the house for £105,000!

The guy was happy to sell it and get his cash quickly and I got a bargain! It just needed a quick paint job which my hubby and I did ourselves then it rented out immediately. So not only did we make made over £50,000 in equity, we also get a cash flow of £245 per month. Nice one 🙂

How many leaflets should you start with?

It’s best to start with 5 to 10 thousand leaflets. The response rate isn’t great, but remember you only need ONE lead from the distribution to get your costs back and get a bargain property.

I usually distribute 10,000 at a time. It’s best to try and do this once every month, or at least every other month to be consistent. This way you can ‘measure’ your results better.

What’s the best size to use?

The best size is an A5 leaflet, which is half of A4. The leaflet can be single or double sided. I think it’s better to have them double -sided as they don’t cost that much extra and you can get more information on them.

How much does this cost?

Five thousand A5 double-sided leaflets can cost anything from £85 up to £165. Ten thousand can cost from £150 up to £290. (or more)

Note: The prices quoted are based on you supplying your own artwork. If you want the leaflets designing for you this costs extra. (Please ask me about this if you’re interested) I design my own leaflets using Photoshop, I actually enjoy it!  Or you can just use ‘Paint’ or a word document.

Samples of leaflets I’ve used (please feel free to copy and use for your own purpose)

                           

Who should you use to distribute them and how much does it cost?

I tried a few different methods. I used online delivery companies a couple of times but didn’t find them very reliable or cost effective. Also they mostly want to deliver your leaflet with 3 or 4 others at the same time. This isn’t a good idea as I’m sure you’ve had a stack of leaflets pushed through your door at some point and you’ve thrown them away?

It’s much better to have them delivered ‘solus’ (on their own) and delivery companies charge extra for this so it can work out expensive.

I just put an advert on my local ‘Gumtree’ site which is FREE saying something like ‘Leaflet Distributors Wanted. Great Cash Bonus Paid’ and I got LOADS of replies! Of course you have to be prepared to ‘filter out’ the time wasters etc. I send them an aplication form which is purposely quite detailed, because if  it’s too much trouble for them to fill in the form then they obviously wont be bothered to deliver the leaflets properly.

I’ve also put postcards in shop windows which is cheap and effective.

I’ve recruited leafletters in my own area when I’ve seen them actually delivering other people’s leaflets. One morning when looking out of my bedroom window I watched an old guy deliver leaflets to every house on the road at 7.30am in the morning. I thought to myself  “now this guy’s obviously dedicated and reliable,” and when he got to my house I had a chat with him and he’s become one of my most reliable distributors!

It’s best to have three or four distributors in different areas that don’t overlap so you know who to pay a bonus to when you get a lead that completes. I give them ‘log sheets’ to keep a record of what streets they’ve done and they also write down any houses that have a ‘For Sale’ or ‘To Let’  board so I can send ‘follow up’  letters to them later.

I’ve written up an agreement which I ask them to sign which says that they wont be paid if they are found to be ‘defrauding’ us! It also states they are delivering at their own risk and must be responsible for their own tax & insurance payments. (to cover me) If someone loses a hand as a result of being attacked by a large canine you don’t want to be held accountable do you!

I pay them £30 per one thousand leaflets they deliver and a bonus of £500 on completion of a lead. The bonus keeps them motivated and therefore they’re less likely to ‘dump’ the leaflets. It’s possible to deliver a thousand leaflets in a day depending on the type of property you’re delivering to.

Presently I have a few distributors, 3 or 4 of them are very reliable (one of them I recruited after he called me re selling his house and he’s become a good friend too) I’ve only had one so far I had to ‘sack’ because I found out he wasn’t doing the job properly. My husband Mike carries out ‘spot checks’ to make sure they’re done correctly BEFORE they are paid.

So it’s a relatively simple process  that anyone can follow. Obviously your leaflet has to be written in such a way that it looks like an ‘attractive offer’ to a would be vendor but I’ll talk more about this in my next post. So stay tuned!

If you’re thinking of distributing your own leaflets I can supply you with quality leaflets at a great price here: https://suziebates88.wordpress.com/quality-leaflets-at-a-great-price/

Happy Distributing Folks!

Take care,

Suzie 🙂

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