Here's how the real estate investor market worked two years ago.
Step 1: An independent investor buys a list of homeowners in a target area. Typically, the list is comprised of homeowners who have high equity or no mortgage on their homes.
Step 2: The independent investor mails a post card or letter asking the homeowner if he/she would like to sell the property for quick cash.
Step 3: The independent investor waits for a phone call and then negotiates to purchase the property. Typically, the homeowner has a reason to sell immediately: divorce, death, other debt, older home in need of repairs, or a second home no longer needed.
Step 4: The individual Investor fixes and flips the home; holds the home for a rental; owner finances the home; or wholesales the home.
Rinse and Repeat.
That was two years ago, but the real estate investing world has a 1,000 pound gorilla or two or three 1,000 pound gorillas. Big companies are targeting the same homeowner base.
So how does the independent's marketing stack up against the big company's? Let's take a look at Clint versus Opendoor.
Clint uses a bright yellow postcard with a font that mimics a printed handwriting style. The front is simple and a real stamp is on the postcard. Opendoor takes a business approach and uses the address side of the card to highlight Why to sell to Opendoor and how the process works.
Clint keeps it personal on the backside. He lets the homeowner know that it's just him and a friend doing this. There's a local phone number and even a PS that it's fine if the home needs work. Keeping the local and personal feel, Clint adds a God Bless!
Opendoor's back of postcard is it's impact statement. The question is asked How Much Will Opendoor pay to buy your home?
So which is more effective? That will depend on the homeowner. What is new is that Clint's not only competing with the other Clint's and friends of the world; he's up against the deep pockets of corporate America and Wall Street crowds.
We'll be reviewing more letters and postcards each week. Hang in there Clint! And thanks for the four postcards in one year. That's one a quarter. Opendoor is currently dropping one postcard and one letter a month to us.