Real Estate

Real Estate Investing – How to Use Postcards and Letters to Raise Private Money

Let me guess, is your real estate business in trouble? It’s no surprise…in fact, most industries in the United States are reporting significant losses for 2008 and worse is expected in 2009. The mortgage industry in particular is struggling because real estate is the latest in what a lot of people think right now. Potential homeowners are hesitant to buy a new home, just as lenders are hesitant to approve major loans.

Your goal should be to put traditional lenders out of their paranoia and pursue new interests from private lenders. Private lenders are the ones with the money to lend and are eager to discover the next investment that will provide returns than CDs or money markets.

But how does the average investor find private lenders? We market for them. One way is to use postcards and letters. Postcards and letters are not new but they work.

Both options can be used to solicit the interest of high net worth individuals. Your first step is to buy lists of high net worth individuals and then send them a postcard or letter inviting them to get a free report or invite them to an informational seminar. The goal is to entice them to listen to you one-on-one, in an in-person meeting, or at a seminar. You can then take the opportunity to discuss your real estate investment business and the option of private loans.

Be sure to send cards or letters to people within your state and do not cross outside of your state. This will eliminate the need to register with the federal SEC.

What is the difference between letters and postcards when it comes to advertising? Cost aside, postcards provide a very strong visual image with limited information. This is the ideal advertisement for someone who is in a hurry, or someone who has a visual mind and wants to “see” the results of their proposal. Postcards are also a good idea for someone who has already received a letter or attended your seminar and just needs a gentle reminder.

You may assume that since the Internet is what everyone uses, there is no point in advertising through any other medium. Wrong! People still read newspapers and still get mail. In fact, people are more likely to read a physical document addressed to them (one in 5 or 10) than they are to read one of the thousands of virtual ads they see online every day.

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