Two Ways to Reach Property Owners
Real estate investors have two main choices for contacting property owners: direct mail and cold calling. Both methods work. Both have pros and cons. The best choice depends on your personality, budget, and goals. This guide will help you decide which method is right for you.
What Is Direct Mail?
Direct mail means sending letters or postcards to property owners. You mail to many people at once. They read your message on their own time. Some throw it away. Some call you back. It's a passive approach. You send the mail and wait for responses.
What Is Cold Calling?
Cold calling means calling property owners on the phone. You talk to them directly. You have a conversation right away. It's an active approach. You don't wait for responses—you create them. Good scripts make cold calling easier.
Cost Comparison
Direct mail costs more per contact. You pay for printing, postage, and list building. Each piece might cost $0.50 to $2.00. Mailing 1,000 pieces costs $500 to $2,000. Cold calling costs less. You pay for skip tracing to get phone numbers. You pay for your phone service. Each call might cost $0.20 to $0.40. Calling 1,000 people costs $200 to $400.
Time Investment
Direct mail takes less of your time. You design one letter. You print it many times. You mail it. Then you wait. The whole process might take a few hours for 1,000 pieces. Cold calling takes more time. Each call takes 2-5 minutes. Calling 1,000 people takes 40-80 hours. But you get results faster.
Response Rates
Direct mail gets 1-3% response rate on average. Out of 1,000 letters, 10-30 people might call you. Cold calling gets 5-15% conversation rate. Out of 1,000 calls, you might talk to 50-150 people. More conversations mean more chances for deals. Learn how to improve these numbers.
Speed to Results
Cold calling gives faster results. You can make 50 calls today. You might have 5 conversations. You might schedule 2 appointments. You could have a deal in a week. Direct mail takes longer. Mail takes days to arrive. People take days or weeks to respond. Your first deal might take a month or more.
Personal Connection
Cold calling builds better relationships. You talk directly to the owner. You answer questions right away. You build trust through conversation. Direct mail is impersonal. It's just words on paper. The owner doesn't know you. They have to take the first step to contact you.
Rejection and Comfort
Cold calling feels harder emotionally. Some people hang up. Some people are rude. You face rejection directly. It takes thick skin. Direct mail feels easier. You don't face rejection personally. If someone throws away your letter, you never know. It's less stressful for many people.
Which Method for Your Personality?
Choose cold calling if you like talking to people, want fast results, have limited budget, and don't mind rejection. Choose direct mail if you're shy on the phone, have more money than time, want to reach many people at once, and prefer less personal interaction.
Combining Both Methods
Many successful investors use both. They mail letters first. Then they call people who didn't respond. This combination works well. The letter warms up the contact. Your call follows up. People remember your letter. The conversation is easier. Top investors use this strategy.
Direct Mail Best Practices
If you choose direct mail, use handwritten envelopes (people open these more), personalized letters (use their name and property address), clear call to action (tell them to call you), simple message (don't use big words), and your personal phone number (not a company number). Simple letters work better than fancy ones.
Cold Calling Best Practices
If you choose cold calling, call during good times (late afternoon and Saturday morning), use a proven script, sound friendly not pushy, ask questions and listen, and keep detailed notes. Use verified phone numbers to reduce wrong numbers. Check out our guide on data accuracy.
Tracking Your Results
No matter which method you choose, track your numbers. For direct mail, track pieces sent, responses received, appointments scheduled, and deals closed. For cold calling, track calls made, conversations had, appointments scheduled, and deals closed. These numbers show what's working. Use these tracking tips.
Budget Considerations
Start with the method you can afford. If you have more time than money, choose cold calling. If you have more money than time, choose direct mail. You can always add the other method later. Many investors start with calling, then add mail as they make money.
The Truth About "Best" Method
There's no single best method. Both work. The best method is the one you'll actually do consistently. If you hate calling, you won't do it enough to succeed. If you hate writing letters, your mail won't go out. Pick the method that fits you. Then work it hard.
Choose Your Method and Get Started
Direct mail and cold calling both lead to deals. Pick the method that fits your personality and budget. Or use both together for maximum results. The key is consistency. Whether you mail or call, do it regularly. SmartSkip provides the contact data you need for either method. Ready to start reaching property owners? Get your list today and start making contact. Also read our guide on building your property list.