Real Profit on a 10,000 Unit Mailer (LA 1290)
Transcript:
Steven Butala:
Steve and Jill here.
Jill DeWit:
Hey.
Steven Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.
Jill DeWit:
And I'm Jill DeWit, broadcasting from sunny Southern California.
Steven Butala:
Today, Jill and I talk about the real profit on a 10,000 unit mailer. It costs like five grand to do a 10,000 unit mailer, which is a huge one, by the way. If you're brand new, you never want to do one that big. But here's a hint on the answer. You make more than $5,000.
Jill DeWit:
One deal could do it. Exactly.
Steven Butala:
Before we get into it, let's take a question posted by one of our members on landinvestors.com online community. It's free.
Jill DeWit:
Charlie Row. So I was opening my PATLive account after deciding I don't like talking on the phone. It's holding my business back. And I saw one of the things that they specialize in is real estate sales. They're currently answering my phone for mailers, but I didn't even know that they would do sales. My first instinct is to just use them on cheap property, where I find myself repeating everything that's already in the ad when a potential buyer calls. Is anybody using them for sales? How is their salesmanship? I mean, if they sell one property a year, it pays for itself. I think I have to do it. I've honestly not used them for sales.
Steven Butala:
So, I mean, you're an expert at this stuff, Jill. Do you mind if I ask you a couple of questions interview style? There's something bigger and deeper going on here, and I'm certainly not picking on this person at all. We all have stuff that we love to do, and we all have stuff that's not our favorite task to do in these real estate deals. So this person is stating something that has fascinated me since the beginning of my career in real estate. You post the perfect posting, you buy a piece of property for 10 grand, you post it for 25,000. You have a perfect posting. It gives all the information you could ever want, utilities, all of it. Yet, to this day, buyers call and say, "Hey, where are the utilities on this?" What's the psychology behind the same questions over and over and over again from these buyers?
Jill DeWit:
Well, first I would argue... I want to make sure... If he gets this, there's a chance that you miss something now and then. There's a chance that you forgot to put the taxes in. So I would pay attention to that if I get the same question, like, "Oops, I forgot to add that." Because that can easily happen. Then otherwise, they're just people that are not real buyers. There's tire kickers out there and everything. I'm sure every person, I don't care what kind of product you sell, there's a percentage of people that don't bother looking at the description, and they go, "Is it really baby blue? Are you sure it's not navy blue? How blue is the baby blue?"
You know what I mean? Who knows? There's something of that nature. But other than that, if you do a really good posting and you spell it out correctly, and you're getting it in front of the right people too, by the way, you're marketing it to the right community, you're hopefully getting the right calls, and it's just kind of a, "Hey, I'm about to drive out there. Just want to make sure your website's up to date and it's available." "Yep." Or, "Hey, I'm going to buy this. I need to wire some money over tomorrow. How can I lock it in right now?" Kind of thing.
Steven Butala:
If you do everything right in the acquisition and in the presentation of the property online, that property should sell in one or two weeks or less. The problems come, and all these questions that are related to sales like this come when property doesn't sell as fast as you think it should, or you're overpricing it, or a combination of those things. I've long said there's two reasons that property doesn't sell quickly. Number one,