The Beginner’s Guide to How Direct Mail Helps Realtors Make Huge Profits

What are the Costs associated to Flipping a House?

The first thing to understand about flipping a house are the costs involved. It’s not just a matter of buying a house and selling it for a profit. Nine times out of ten it will need to be renovated. Even before that, part of the art of selling a successful house is sourcing the deal. Many a times, that deal can come in the form of an off market listing, this is where Optamark and its franchisees provide unique strategies to realtors and real estate companies to maximize their profit when it comes to flips. Optamark provides sequential direct mail drops in hyper focused locations to target the right demographic for the required project. In addition to that, Optamark provides real estate companies and professionals systems like the one below to allow you to have a totally unique and dynamic experience for your brokerage and its agents:

https://realestate.optamarkportals.com/login
username: admin
password: admin
(Now imagine this system totally custom tailored for everything your brokerage needs, including this direct mail product)/

 

So what are the costs involved with an associated flip?
  • The purchase price of the house.
  • Rehab costs.
  • Appraisals and inspections
  • Holding costs, realtor fees, and closing costs.
  • Loan interest and associated fees
  • Down payments on loans.
  • The marketing costs to acquire the property
Without finding the flip, you won’t be flipping anything…
So we wanted to showcase an example of a successful use case. James Saxion who is a highly successful Real Estate Agent in Arkansas.
The Problem:
The ability for the Saxion Real Estate team to source more “off-market” flip deals. The current issue is there is not enough inventory for them to find the deals and having them listed on MLS is making the profitability difficult to attain more properties to showcase to their investors. Investors are looking to invest in areas of the Midwest/South as rents are high, property value is relatively affordable and James and his team have been identifying locations which have high appreciation targets and are in desirable areas that have an upward trajectory.
The Opportunity:
Create a compelling call to action direct mail products to the sellers of the property to then inquire about selling their house. Assuming they sell, the objective would then be to flip the property via unique financing options, then re-appraise the property value and continue to rent roll the property. The net effect would be increased equity into the flip in addition to hopefully securing a stable and secure tenant.
What we did:
We consulted with the Remax Team and took time to really understand the areas of focus that needed attention, built a 3 month targeted direct mail campaign. The results have been remarkable.
Heres what we did?
  • Focused on identifying the carrier roots via USPS of the exact locations (literally street by street) that the Saxion Team and professional knew are the critical points of opportunity for development in the up and coming areas. In this case, one of the areas of interest is called Stiff Station, this is an “up and coming” area of high desirability with lots of upside potential.
Here is a way of how we went about defining the routes:

  • Based on his firms exact target focus, our franchisee worked to put together a highly focused spread on the flip areas they wanted to target: