Property Offer Sending Campaign Cost Breakdown (CFFL 316)
Property Offer Sending Campaign Cost Breakdown
Jack Butala: Property Offer Sending Campaign Cost Breakdown. Every Single month we give away a property for free. It’s super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don’t even have to read it. Thanks for listening.
Speaker 1: Jack Butala with Jill DeWit.
Speaker 2: Hi.
Speaker 1: Welcome to our show today. In this episode, Jill and I talk about a property offer sending campaign and its cost breakdown. How much does it cost to send offers to owners?
First let’s take a question posted by one of our members on successplan.com, our free online community.
Speaker 2: Cool. All right, John asked “Does data to doorstop normally include the elevation of each parcel? If not, how can I find it?”
I want to explain what data to doorstep is real quick.
Speaker 1: Yeah, yeah.
Speaker 2: Then the elevation.
Speaker 1: Go for it.
Speaker 2: Get into it. Data to doorstep is the current name of our tools. It’s basically Jack and I have all the education to get you going and rolling in our business and we provide the tools too. That’s the name of our basically, the whole package. Buying tools, finding property tools, sending out mailer tools.
Speaker 1: It’s our membership.
Speaker 2: Our discounts. It’s everything you need.
Speaker 1: If you’re a group member and you get all the tools.
Speaker 2: Everything you need to be … have access to everything that the pro’s use to send out offers.
Speaker 1: Right.
Speaker 2: Really is what it is. John is asking about the elevation of each parcel. Is it sea level, is it 1,000 feet, 2,000 feet? What is the elevation of this parcel and how do I find it.
Speaker 1: This is a great question, can I answer it?
Speaker 2: Yes.
Speaker 1: This is a great question and there’s 2 ways to do it. No, you don’t need to be a member to answer your question quite honestly. If you find the parcel in …
Speaker 2: Google Earth.
Speaker 1: Google Earth, Earth Point, or Google Earth Pro you’ll notice if your settings are correct in Google Earth Pro, on the bottom right, wherever your mouse is, wherever you’re looking at, which property you’re looking, it’s going to show the elevation. The elevation above sea level.
Speaker 2: Exactly.
Speaker 1: Quite simply.
Speaker 2: In feet.
Speaker 1: That’s part of the check list and part of the education that you learn from us, it’s actually pretty important.
Speaker 2: When you’re selling this property your people want to know, is it 10,000 feet or 2,000 feet. Is there going to be snow?
Speaker 1: Does it snow?
Speaker 2: Is there not going to be snow? What are trees like there based on the elevation.
Speaker 1: Good question John.
Speaker 2: Love it.
Speaker 1: If you have a question or you want to be on the show, reach out to either one of us on our online landacademy.com community.
Today’s topic, this is the meat of the show, is sending offer campaigns, sending out a bunch of offers to owners and how much does it cost. What’s the cost break down?
Well, with us let’s start with the anatomy of a regular deal. In the beginning you learn how to do this and then you become a member and have access to the assessor database that’s all over the country. I think there’s 3,300 assessor databases in all and there’s 3,400 counties. You pull the data, costs about 5 to 8 cents a unit. Let’s say you’re going to do a 1,500 mailer, multiply that by 5 cents, not very much money at all. Then, it’s time to get it out in the mail. This is where, I think Jill you said before the show you chose this topic or wrote this topic based on a question that you received?
Speaker 2: Exactly, someone was asking “Okay, once I have the education and everything, what do I need to expect to get some offers out?” The whole campaign, I break it down in 3 parts. Let’s see what you think. Here’s how I see it when you’re doing this, Jack. I have the data and the downloads as 1, I have the mail and the postage as 2, and then the 3rd thing you need to think about is acquisition.
Speaker 1: Oh sure, absolutely.
Speaker 2: That’s how I see this.
Speaker 1: Yeah, I mean, that’s a great point. You always want to use as much money for acquisitions to buy better property and the least amount of money for overhead and all the other stuff.
Trust me, we’ve done this the wrong way and the way that it’s set up now is optimal.
Speaker 2: Exactly.
Speaker 1: The raw math is this: 5 to 8 cents for the data per record. How much does it cost to get it in the mail? What are the different ways to get it in the mail?
Speaker 2: There’s 3 different ways and I want to pack up 1 little thing on the data and the downloads because I think this is so important. It’s kind of like we’re having an ongoing conversation about it and there’s right ways and wrong ways to do it. We make it seem easy, Jack and that’s a thing where I think people get hung up. They’re like “You guys talk about it like it’s no big deal.” It’s because we have done it all wrong, took us how many years to get to this point and now we can save you kind of thing.
I have a lot of people, 1 guy in particular, just spent so much money and wasted so much time on getting this data. We’re talking 100’s of dollars for 1 counties, took 6 weeks to get the list.
Speaker 1: Oh he got it directly from the county?
Speaker 2: Yeah, because he didn’t know there was a better way and that’s the thing too. My point of this show is not on just the realistic costs but there are better ways to do it. Sometimes, you might think you’ll be saving money but if you’re … 125 bucks for 1 county when you can spend $200 and have every county in the country, let’s think about this.
Speaker 1: In the same format.
Speaker 2: Yeah, and at your fingertips. Right now, today. I don’t have to wait 6 weeks for the assessor to send it back to me.
Speaker 1: It’s all in the same format.
Speaker 2: Right.
Speaker 1: You just learn how to do it 1 time.
Speaker 2: This guy learned how to scrub it himself, I’m like “Wow, it’s just so amazing to me.”
Speaker 1: My hat’s off to him because it’s tough. It’s tough to scrub county data.
Speaker 2: Cleaning it and figuring out and hoping you have all the data you want. The next step like you said Jack is the mail and the postage. I looked a few up and Jack always, and I love it, Jack’s advice and his thing is for our property type, 1,500 mailers is what you need to test a county.
At that level, I’ll start with yellow letters, cost 74 cents a unit.
Speaker 1: Oh my gosh.
Speaker 2: I know. Click to mail is 68 cents a unit.
Speaker 1: What?
Speaker 2: I know. Our current one is 55 cents a unit at that small amount.
Speaker 1: Yeah, with the land academy discount and the printer that we use in Pasadena, right?
Speaker 2: Mm-hmm (affirmative)
Speaker 1: Then we’re fairly close to releasing Land Academy’s own printing scenario which includes free mail merge and a bunch of other stuff for in the 40 cents. We haven’t priced it exactly yet but I’m hoping that it’s going to be in the lower 40’s. It’ll be in the 40’s.
Speaker 2: It’ll be below 50 cents anyways!
Speaker 1: Multiply, even if you use the one we’re using know which is what, Jill? You said 55 cents?
Speaker 2: Mm-hmm (affirmative)
Speaker 1: That’s approximately 10 cents times 1,500 that you’re going to save.
Speaker 2: Oh my gosh. Even lining up right now today, us for yellow … a quarter a mailer, 25 cents a mailer? That’s a lot of money that you’re saving right there. I’ve had people even come back to us and say “Oh my gosh, just what I saved on postage alone.” How do we do it? We have a big group and Jack has negotiated, really Jack, you has fantastic rates and you have a team there making it easy for everybody and it’s a no brainer. That gives you an idea.
The point of this show is how much does it cost. If you budget 200 bucks a month for the data, and that’s the cheapest you’re going to get anywhere, it’s awesome.
Speaker 1: Well it’s 200 bucks to be a member.
Speaker 2: We give you access to all of the data all over the country so that’s what you need to budget for and then the downloads, you talked about that. Right around 8 cents a download.
Speaker 1: THat’s not going to get any cheaper no matter what you do unless you buy a list and they’re floating all over the internet, for 25 bucks or something and now you’re wasting a huge amount of money because you have no idea where your data came from.
Speaker 2: Or how old it is.
Speaker 1: It doesn’t include assessed values and some of the stuff that you really need to make good decisions about who gets a letter. Go ahead.
Speaker 2: Exactly. Then the postage and the mail and the last is what you covered, the acquisition funds.
Speaker 1: Yeah, the postage and the mail is a big, huge issue because at 1,500 units you save 150 bucks. The $200, we really tried to make it so we could say this sentence: It costs $200 to be a member but you’re saving more than $200 by sending any type of mail out and that’s just by postage and data you’re saving that.
Speaker 2: Exactly.
Speaker 1: That’s pretty amazing.
Speaker 2: Exactly.
Speaker 1: How much does it cost to get a 1,500 unit mailer out, Jill? Let’s say it’s 45 cents a unit. 45 cents times 1,500.
Speaker 2: I have to go back.
Speaker 1: I’m doing it right now, I have it open.
Speaker 2: You know what’s funny, I had an email that I actually sent out on this but I don’t have it right here with me so that’s good.
Speaker 1: $675 plus 8 cents a record.
Speaker 2: Tell me. You’re so good at …
Speaker 1: $120. $675 plus 120 is –
Speaker 2: Well we clearly don’t script these shows!
Speaker 1: It’s 800 bucks.
Speaker 2: Yeah.
Speaker 1: It costs you $800 to get, after you scrub it, with us, 1,500 offers in front of owners who are showing all the signs that they want to see their property. No, it’s not back tax property. You should be able to buy, if you’re at 1%, about 15 properties. You should make an average of about 2 grand per property with vacant raw land. 15 properties times 2 grand is what? A lot.
Speaker 2: Right. Exactly.
Speaker 1: It’s $30,000.
Speaker 2: Totally.
Speaker 1: You spent $800 to make $30,000.
Speaker 2: You know, it’s so great Jack, you do math in your head every day.
Speaker 1: I know.
Speaker 2: You’re so good. You look to me, you ask me these math questions, you look to me like I’m actually going to reply and I’m not. I’m just like, I’m waiting!
Speaker 1: [crosstalk 00:10:04] There’s Jill’s shows and my shows and this is kind of her show, based on this conversation. No, no it’s not. You’re not supposed to do math in your head. You’re supposed to be pretty and funny-
Speaker 2: Thank you.
Speaker 1: – Fun and talk to people.
Speaker 2: I can but I’m not even going to get there. It’s okay.
Speaker 1: You’re the people person.
Speaker 2: Thank you.
Speaker 1: I’m not asking you the math like you’re in 4th grade.
Speaker 2: Okay, you look at me like you’re looking at me …
Speaker 1: I do it in my head, I’m really asking myself.
Speaker 2: Okay, thank you.
Speaker 1: It has to click.
Speaker 2: I’m like “I’m sure he’s not waiting for me to reply on this one because I’m not going to.”
Speaker 1: The math switch in my head has to click.
Speaker 2: Exactly.
Speaker 1: Thank you for pointing that out actually.
Speaker 2: You know-
Speaker 1: Here’s a recap again. I don’t mean to interrupt you. It costs about $800 to get a 1,500 unit offer scenario in the mail whether it’s houses or land or apartment buildings or whatever. You are going to buy 1 property for sure. Are you going to make more than 800 bucks? Heck yes!
Speaker 2: Oh gosh.
Speaker 1: Heck yes!
Speaker 2: I keep thinking about that guy … It’s so common but people don’t believe it. Buy it for 100, sell it for 1,000. People are doing that all day long and if that’s your business model like many of our people, 1 or them pays for all of it.
Speaker 1: That’s just land. We wholesale houses doing the same thing. Slightly different. We don’t have an education program available yet, but it’s coming. We do buy 1 house per 1,500 to 2,000 mailers. We cap our profit per house at 10 grand because we wholesale, we don’t even go look at the property, the person who buys it from us does. Is it worth it? How many different ways can we say it? That was the math way.
Speaker 2: Right.
Speaker 1: Not to mention the jumping up and down in your living room way.
Speaker 2: Exactly. Totally! This is just for me, just about getting … I want people to know that it’s not crazy expensive. A lot of people think that “Oh gosh, to be in this world you have to have so much money. Just to be an investor I’ve got to have $50,000 to $100,000 backing and all this good stuff.” No you don’t. You really don’t. Anyone at any level can jump in.
Speaker 1: You know we’re in a professional studio these days, this is what, our 3rd or 4th week? I just had one of the greatest audio experiences ever and it really translates to what we’re talking about. We walked in and decided to try something new and run this audio through hopefully, it sounds better. Run audio through … the shows are now being run through professional equipment, top rated professional equipment. The guy who was helping us, he knows exactly what he’s doing, just like us in real estate. He knows exactly what he’s doing because he didn’t say this but he walked in here, plugged a bunch of stuff on, turned it on, smiled, handed me a water and said “You guys rock, this sounds great.” He’s done it a million times.
Speaker 2: That’s right.
Speaker 1: It would’ve taken me a year to walk into this studio and figure out what to do.
Speaker 2: We’ve been doing this for over a year.
Speaker 1: From a real estate standpoint, we’ve been doing this since the 90’s.
Speaker 2: Yeah.
Speaker 1: It’s the same thing.
Speaker 2: That’s true.
Speaker 1: You can go learn on your own for a year or 2 years or you can just walk in to the thing with us and it costs 800 bucks-
Speaker 2: Gosh, you’re right.
Speaker 1: -to make 10 grand or whatever your numbers are.
Speaker 2: Can you imagine if you … it’s like if started a new job. Just dream it up, it’s like starting a new job with no training and they go “Welcome to the team, you know you have the nice personality and you seemed like a good fit, that’s why you’re here but we’re just going to let you figure it all out on your own.”
Speaker 1: I know.
Speaker 2: You’re like “No, no, no there’s training involved!” They’re going to help you get you up to speed so we’re not wasting a lot of time and a lot of money.
Speaker 1: Exactly.
Speaker 2: That’s it! It’s the same thing. Good point, Jack.
Speaker 1: Audio Alex, I’m sure you don’t listen to this show but thank you.
Speaker 2: Exactly.
Speaker 1: Join us in another episode where and Jack and Jill discuss how to use information, that’s me.
Speaker 2: And inspiration, that’s me!
Speaker 1: To get just about anything you want.
Speaker 2: We use it everyday to buy property for half, sometimes less, of what it’s worth.
Speaker 1: 1/10th.
Speaker 2: Often less and sell it immediately.
Speaker 1: You are not alone in your real estate ambition. Yeah, what a great feeling.
Speaker 2: Yeah.
Speaker 1: I’ve been doing this myself quite some time.
Speaker 2: Oh my gosh.
Speaker 1: This is awesome.
Speaker 2: Like my raspy voice? The only thing is, maybe that’s what’s going on now. I’m actually picking up things in my voice that I never heard before because the quality is much better.
Speaker 1: That’s exactly what’s happening, I’m sure of it.
Speaker 2: That’s so funny. You know, I’m going to miss the fire engines in the background though, those were good times.
Speaker 1: You know, it’s not that we didn’t … That’s a good point. You and I roll like, let’s just see if this works, let’s plug this stuff into the wall at the house, buy some software, see if anybody listens to the show.
Speaker 2: Yeah.
Speaker 1: Turns out they do! Then we go and get all the pros involved and stuff. A lot of people do it the other way around, they get a bunch of money, they start hiring professional people to do stuff, they don’t know what they’re doing. I needed that time to become better at actually speaking in front of a microphone. Did you?
Speaker 2: No.
Speaker 1: You’re born that way.
Speaker 2: Thanks.
Speaker 1: Are you?
Speaker 2: No, that never worried me for some reason, I don’t know why.
Speaker 1: Were you in theater in high school?
Speaker 2: Never. Nope. None.
Speaker 1: Why?
Speaker 2: Never.
Speaker 1: You’re perfect for that.
Speaker 2: Thank you. No! I was doing my own version of that.
Speaker 1: Oh, I’m sure. You mean like drama?
Speaker 2: No! You’re so silly.
Speaker 1: Female drama 101.
Speaker 2: That was so funny.
Speaker 1: You pass.
Speaker 2: It made me think of breakfast yesterday with our friends. We were out with our neighbors and their kids and they were sharing something that happened the night before and whatever it was, their discussion was Jill will fix it. Watch. It was like we need to access to something a sneaky way and somehow my name came up.
Speaker 1: Oh, access a sneaky way! Oh yeah.
Speaker 2: What was it? Hilarious.
Speaker 1: That is your middle name.
Speaker 2: Jill will figure it out, let’s get Jill on that.
Speaker 1: Sneaky access. Right.
Speaker 2: I don’t know.
Speaker 1: Info and inspiration to buy undervalued property.
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