I am in the process of sending out letters with flyers regarding purchasing single family homes of distressed sellers. How many letters will I need to mail out, before I get one seller to sell his home to my group? (the law of averages or the ratio of success)
About 1 in 300-500.
I’m a real estate investor and do a lot of marketing using postcards and "yellow letters."
However, distressed homeowners aren’t you’re best target, if by "distressed" you mean those facing foreclosure. The problem is most don’t have any equity in their property. You may get calls, but they need to sell for way above fair market value. Example: They bought two years ago for $500,000. They owe $500,000. Their home is now worth $375,000. They can’t refinance, and their ARM is about to reset. A short sale is a possibility, but that’s complex, time-consuming, and uncertain.
If you mean "motivated" owners, look to out-of-state owners. (Any local Realtor can get that list for you.) Also target owners who’ve just evicted tenants. (That list is free from your county courthouse.) Or target people who’ve lived in their homes for 15 or more years. They’ll have a lot of equity.
Other distressed (motivated) homeowners are those getting divorces. Divorce documents are public information, so you can get those.
You might also target expired listings. Realtors do that a lot. Problem with those is that the listings may have expired because the property was overpriced. Many of these are on the market as a last-ditch effort before trying a short sale or going into foreclosure.
I’ve done a lot of direct marketing to motivated homeowners. Feel free to post any other questions you have.
Hope that helps.