Responding to Real Estate Yellow Letters

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After you purchase your first RE investment, you will magically start receiving yellow letters from realtors asking to purchase your property.

For the longest time, I would run the following program in my mind:
If(mail = yellowLetter) {throw away}.

What a Wasted Opportunity

In normal market conditions, the majority of real estate transactions are purchases by nesters, not investors (and if you want to learn about how this affects RE markets, read this). Because the market is driven by nesters, most realtors will focus on serving that demographic. As an investor, you will encounter many realtors who may claim to be investors’ agents, but really only know how to serve nester clients. As soon as you agree to work with one of these devious realtors, they will add you to an MLS email list, and you will never hear from them again.

So, what do real estate mailers tell us?

If you receive a real estate mailer from a realtor, then odds are that the agent is trying to find off-market listings to sell to their investor clients. This proves that the agent is putting in the effort to find deals before they hit the MLS and investing a portion of their commissions into a marketing campaign. These actions signal that the agent is committed to growing their business, which is a good sign. As their business grows, they will increase their exposure to motivated sellers and funnel those leads to their investors.

Before You Throw Away That Mailer, Pick Up the Phone

Even if you don’t want to sell your property, you should call that realtor. Tell them what your real estate investing goals are and ask to be added to their buyers list. You win in this scenario because you have just gained another agent to work with without having to waste your time scouring Zillow for agents who are truly investor-friendly.

By making connections with the realtors behind the mailers, your investment team will slowly grow with minimal effort on your part; and if you do this consistently enough, then you will even be able to have a few agents on your team who can scout out deals for you.

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