The Million Dollar Foreclosure System - Part 4 5-2
The prospects that you are interested in reaching usually will not take any
action until late in the foreclosure process. They usually won't do anything for the
first two or three weeks after the default notice is received.
Plan on adding new names to your mailing list about three weeks after a
default is recorded against them. This is a good idea for two reasons. First, 90%
of them won't take any positive action during that period. Second, your
competitors will be falling all over each other trying to contact them as soon as
possible after the default is recorded. Your first message will arrive after that
madness.
Now you have your direct mail schedule. Gather the names of owners in
default, wait three weeks, add them to your mailing list, then mail every ten-days
according to the schedule above.
This schedule is based on a foreclosure period of four months. You must
adjust the schedule to fit the time period allowed by law in your state. The
principal will be the same. Wait for a cooling off period, then mail every ten days
during the foreclosure period.
There is nothing wrong with mailing during the first three weeks. Do so if
you wish. You may occasionally find someone who panics and wants to sell
instantly. Experience shows that this seldom happens. The worst that can
happen with mailings starting directly after the default is that your name and
message may have an extra chance or two to register with the prospect.
(An exception to the schedule we have described above would be in state that
allows only judicial foreclosures. These can take much longer – sometimes a
year or more. In such states you may want to mail once each month for the first
six months, twice a month for the next three months and then every ten days up
until the time of the sale.)
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Here's what your mailing program looks like:
Month #1
1st of month -Postcard A
10th of month -Letter A
20th of month -Postcard B
Month #2
1st of month -Tape A
10th of month -Letter B
20th of month -Postcard C
Month #3
1st of month -Letter C
10th of month -Postcard D
20th of month -Letter D
Month #4
1st of month -Tape B
10th of month -Postcard E
20th of month -Letter E
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4
In states where you have a foreclosure period of four months or so, you
will find that seldom does the process actually workout to fall exactly into the
minimum time period allowed. In other words, even though the law allows the
property to be sold some four months after the Notice of Default is recorded
there is usually something that will delay the process by at least a few days.
The company that actually conducts the sale may not be available on the
exact day. The owner in default may have the right to ask for one postponement
(no longer true in California), etc. The trustee may be lax in arranging the sale.
The lender may request a postponement. Any of these things can drag out the
process.
This means you would like the last message you mail to arrive a few days
after the strict four-month period ends. If you will delay adding newly defaulted
names to your list until three weeks after the notice appears you will come very
close to meeting your goal.
You will have to adjust your mailing schedule to meet whatever the
foreclosure period is in your state, but the object is the same. Get your message
to your prospects every ten days or so.
The easiest way to keep track of what message should be mailed on what
day is to enter them on a calendar. Example:
1 2 3 4 5 6 7
Postcard A
8 9 10 11 12 13 14
Letter A
15 16 17 18 19 20 21
Audio B
22 23 24 25 26 27 28
…and so forth.
Just go through the entire calendar year writing in the mailing that should
be sent on any particular date. It is then a simple matter to know exactly what
you should be ready to mail at anytime during the year.
You can add new names to your mailing list at any point in the cycle. Just
follow the mailing guide you have written on the calendar.
Once you get your mailing program up and running you will find it is simple
to maintain. Yes, it takes work, but anyone can do it. You can start by making it
a family project. After you start making money you can have an employee do it.
Your objective should be to work Notices of Default in your county and all
adjoining counties. Since this is a numbers game the more distressed owners
you contact with your mailings the more willing sellers you will find.
Once your system is in place it will just be a matter of finding someone to
search the county records for default notices in each county (or buy the listings).
When you reach this point the profits can be incredible.
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6
Chapter Six
HOW TO DO IT
In this chapter we will offer some suggestions on the nuts and bolts of
operating your direct mail program. Your objective should be to keep it as simple
and practical as possible. If it isn't easy to operate you will soon find reasons for
not doing it. That's just human nature. There is no reason why you mailing can't
be streamlined, efficient, practical and reasonable easy.
You already know that you keep track of what should be mailed and when
to mail by marking a calendar. Your next decision is how you will organize and
maintain your mailings. We suggest using a computer program, but we will also
cover a manual system.
Anyone who has ever had to work with mailing lists has to wonder how
they ever survived without a computer. A computer will save you hours of time
and frustration in any direct mail campaign. That goes double for this system.
Things change so quickly with computers and software that we will not
give you any specific suggestions along those lines. Most database programs
can organize mailing lists and print address labels. The software loaded onto
your computer may already feature a database program that will do the job.
In general you will follow the steps listed below:
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1. Defaulting homeowner's names and addresses are gathered from county
records.
2. Hold the names for about three weeks from the date of the default recording
before adding them to your database.
3. Names and addresses are entered into your database with the date you will
first mail to them. (The next mailing date on your calendar.) Put the dates in a
separate field in your database.
4. Delete all existing names that have received ten mailings (or whatever
number you have decided upon) with no response. The date you entered when
the name was first added to your database makes this easy.
5. Every ten days print out scheduled letters (personalize with mail merge) and
labels and get them ready for mailing.
6. Mail!
This is a simple system, but it does take work. Putting the mailings
together every ten days is a chore. Keep in mind the handsome rewards that will
be produced by this effort and remember you will soon have employees doing
the tedious work. If you must operate within budget constraints limit the number
of names you will mail to at any one time.
With a computer you can produce personalized letters. Since working with
these distressed homeowners is done on a very personal basis using their
names in your letters is an advantage. Without a computer you will be unable to
do this. Your rate of response may be somewhat lower, but if you put all of the
other aspects of the system into practice you will still be successful.
The computer will also produce mailing labels for your postcard and audio
mailings.
You will be mailing hundreds, even thousands, of pieces every month
when you have the system in full operation.
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Yes, it is expensive, but keep in mind that compared to the money that can be
earned your mailing costs will become a drop in the bucket.
Even so, you will want to do everything practical to keep your cost of
mailing to a minimum. Look into getting a bulk mail permit. This can save you a
great deal of money in postage costs. Be sure you understand what the postal
service requires when you mail in bulk. You may need special software and you
may have to have your mailing list screened for address errors on a regular
basis.
Direct mail research shows that the best response comes from letters
bearing first class postage. BUT, there is only a slight drop off in response with
letters carrying bulk mail stamps.
The Postal Service allows you to have your bulk mail postage printed
directly onto your mailing envelopes and postcards. DON'T DO THAT!
Response drops way down when the postage is printed. Buy bulk rate stamps
and stick them onto your cards and envelopes. It is worth the extra effort.
After you have had the system in operation for awhile you will know about
how many pieces you will be mailing each month. This will allow you to place,
large, money saving orders well in advance of need. In almost all envelope and
printing situations the more your order the less the cost of each individual item.
This will be an important saving in your on going, volume mailing program.
Take advantage of volume discounts whenever possible, but only after
you have your system will established. In the beginning be more conservative in
your purchasing. Conserve your cash, so you will have the staying power
necessary to reach the point of positive cash flow.
You will be buying printed and unprinted envelopes, letterhead stationery,
postcards with your printed messages, business cards and some special printed
material. Keep your eyes open for sales, special offers and low, introductory
prices. If you don’t have a database program try a Google search for a
shareware program. If you have Microsoft Windows you can use Excel. This document and accompanying materials are designed to provide authoritative information in regard to the subject matter covered in it. It is for illustration purposes only and presented with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional opinions. If legal advice or other expert assistance is required, the services of a competent professional should be sought. |
