Podcast Summary: "5 Direct Mail Tactics Every Investor Should Know | Justin Silverio"

Podcast Information:

• Title: The Science of Flipping
• Host/Author: Justin Colby, Bleav
• Episode: 5 Direct Mail Tactics Every Investor Should Know | Justin Silverio
• Release Date: October 18, 2024

Introduction

In Episode 5 of The Science of Flipping, host Justin Colby welcomes longtime friend and seasoned real estate investor, Justin Silverio. With 13 years of experience in the industry, Justin Silverio is the founder of Open Letter Marketing and Envelope. The episode delves deep into the critical role of direct mail in real estate investing, debunking myths, and sharing actionable strategies to enhance deal flow and conversion rates.

1. The Critical Importance of Direct Mail in Real Estate Investing

Justin Silverio emphasizes that direct-to-seller marketing is a cornerstone of any successful real estate investor’s business. According to Silverio, finding off-market deals is increasingly challenging through online platforms like MLS, making direct mail indispensable for a steady influx of opportunities.

Justin Silverio [01:01]: "Direct to seller marketing, it is a critically important piece of any real estate investor's business, right, to get deals really. You can't find them online, you know, on the MLS anymore."

He highlights that without a consistent pipeline of deals, a real estate business cannot thrive. Silverio shares his journey of perfecting the direct mail aspect of off-market marketing, which allowed him to outpace competitors in generating high-quality leads.

2. Overcoming the Myth: "Direct Mail is Dead"

The podcast addresses the common misconception that direct mail is obsolete. Silverio counters this by pointing out that many investors giving up on direct mail did so prematurely due to a lack of consistency and understanding.

Justin Silverio [04:50]: "I think a lot of people that say that even either haven't tried it or have tried it, but unsuccessfully because they're just not consistent with it."

Silverio asserts that top investors nationally still rely heavily on direct mail, attributing their success to sustained and strategic efforts rather than sporadic attempts.

3. Mastering List Stacking Techniques

One of the pivotal strategies discussed is list stacking—combining multiple data sources to identify high-potential leads. Silverio explains how integrating various lists (e.g., absentee owners, tax liens, pre-foreclosures) can significantly enhance lead quality.

Justin Silverio [10:44]: "Most of the lists you can actually pull right inside of Envelope... list stack."

He advises targeting a refined list of approximately 2,500 highly qualified leads for a six-month campaign to start seeing tangible results, typically around the third to fourth month.

4. Leveraging Envelope and Open Letter Marketing Platforms

Silverio introduces his two key platforms:

• Open Letter Marketing: Ideal for investors who want robust direct mail services without needing a comprehensive CRM system. It offers various mailing options, including customized postcards and handwritten letters.

Justin Silverio [17:50]: "Envelope is my other company and basically a CRM list building platform that you can do list stacking and all of that."

• Envelope: A more extensive CRM and acquisition system, suitable for those seeking an all-in-one solution encompassing list building, CRM functionalities, direct mail, and analytics.

Justin Silverio [18:10]: "Envelope is someone that wants everything, CRM, direct mail, like list building, all of that stuff."

He also mentions Open Letter Connect, an integration tool that automates direct mail triggers based on specific events, enhancing efficiency and responsiveness.

5. Implementing Multi-Touch Campaigns

Silverio underscores the effectiveness of multi-touch campaigns—sending a series of varied mail pieces over time to build familiarity and trust with potential sellers. This approach contrasts with the outdated "spray and pray" method of mass mailing without targeting.

Justin Silverio [27:21]: "If you want a true direct mail strategy, it's not just the one off as we were talking about. I always look at direct mail as campaigns."

He describes a typical multi-touch campaign involving different types of mailers (e.g., postcards, handwritten letters, trifold flyers) to engage recipients progressively, ultimately increasing the likelihood of responses.

6. Budgeting and Setting Realistic Expectations

Addressing concerns about the cost of direct mail, Silverio provides a guideline for budgeting, suggesting that sending mail to 2,500 records per month over six months may cost between $5,500 and $8,000, depending on the quality of materials used.

Justin Silverio [31:36]: "Sending mail to about 2,500 records per month for six months... somewhere from maybe 5,500 to 8,000."

He also advises setting realistic expectations, noting that initial deals typically emerge around the third to fourth month of a sustained campaign.

Justin Silverio [14:29]: "The proper expectation would say 90 days or a little bit longer. That is when that first deal should start to be coming about now."

7. Tools and Integrations for Enhanced Efficiency

Silverio discusses the integration capabilities of his platforms, particularly how Open Letter Connect can automate direct mail processes by linking with other software systems. This ensures timely and relevant communication with leads based on their current circumstances.

Justin Silverio [19:45]: "Envelope has everything that Open Letter Marketing has in it and it provides so much flexibility and customization in there."

He highlights the advantage of automating mail sends in response to triggers (e.g., a new pre-foreclosure listing), allowing investors to maintain engagement without manual intervention.

8. Recommendations for Different Investor Needs

Depending on an investor’s requirements, Silverio recommends:

• Open Letter Marketing: For those seeking dedicated direct mail services with expert support.
• Envelope: For investors needing a comprehensive CRM and marketing platform.
• Open Letter Connect: For seamless integration with existing systems, enabling automated direct mail sends based on specific triggers.

Justin Silverio [23:22]: "If somebody's new or just wants that handholding and just want direct mail and they're doing more bulk marketing. Then go with open letter marketing..."

9. Final Thoughts and Call to Action

In closing, Silverio reinforces the indispensability of direct mail in real estate investing, urging listeners to adopt a strategic, consistent approach. He encourages investors to leverage his platforms to enhance their marketing efforts and achieve better deal flow.

Justin Silverio [36:17]: "Direct to seller marketing. It is a critically important piece of any real estate investor's business. Right. To get deals. Really, you can't find them online, you know, on the MLS anymore."

The host echoes these sentiments, emphasizing the need for a multifaceted marketing strategy that includes direct mail as a core component.

Justin Colby [37:05]: "Direct mail is something that you need to have as part of your pipeline... make sure you're going to open letter marketing.com, talk to some of their coaches, get educated, understand the systems."

Key Takeaways:

• Consistency is Crucial: Sustained direct mail efforts yield the best results.
• Quality Over Quantity: Focus on high-quality leads through list stacking rather than mass mailing.
• Utilize the Right Tools: Platforms like Open Letter Marketing and Envelope streamline and enhance direct mail campaigns.
• Set Realistic Expectations: Understand the timeline and investment required to see meaningful results.

Action Items for Listeners:

1. Explore Envelope: Visit envelope.app.com to take advantage of the free plan and begin list stacking.
2. Engage with Open Letter Marketing: Reach out via openlettermarketing.com to collaborate with marketing coaches and customize your direct mail strategy.
3. Implement Multi-Touch Campaigns: Develop a series of varied mailers to maintain engagement with potential sellers over an extended period.
4. Set a Dedicated Budget: Allocate funds wisely, focusing more on high-quality leads to maximize ROI.

By integrating these tactics, real estate investors can significantly enhance their deal acquisition process, fostering a sustainable and profitable business.