Loan Modification Leads – How to Use Direct Mail Successfully and Effectively

Direct Mail has traditionally been one of the most effective ways to direct market. Obviously some industries perform better than others but in general it is actually a very cost effective way to reach your target audience with an effective message

Targeting your Audience for Loan Modification

80% of the effectiveness of your Direct Mail campaign will be WHO you are mailing to. You might have the most creative and best looking mail piece in the world but if you aren’t mailing it to the right people that message will be lost on deaf ears. For loan modification direct mail you want to target one, if not both, of the following audiences:

1. Mortgage Lates or Delinquent Homeowners: One of the main criteria for helping put people in a Loan Modification is that they are having trouble making their current mortgage payment. Make sure you find and use a database of homeowners who are late on their mortgage.

2. Exotic Loans – ARM and Option ARMS: Unfortunately, many homeowners were put into loans with very low teaser rates, or just didn’t fully understand the loan they were getting into. Many banks are now modifying these loans before the rates reset making them a great target for Loan Modification companies.

The Right Message

Of course, targeting the right and qualified homeowner cant be stressed enough. But now you have got to grab their attention and give them a reason to act. So the second step in this process is coming up with the right vehicle (be it postcard, letter, snap pack) and the right message.

Loan Modification Direct Mail Creative

Because of the nature of this type of mailing, the postcard is not an effective method of reaching trouble homeowners. These people have typically fallen behind on the mortgage which can be rather embarrassing and stressful. So the best type of mail piece to use for Loan Modification Direct Mail is something the homeowner will have to open. The best and most recommended option is a letter in an envelope. It is more personal and private. Homeowners will appreciate the fact you haven’t sent them a postcard talking about Loan Modification so everyone including their mailman knows they are having trouble paying their mortgage.

Loan Modification Direct Mail Message

Direct Mail is an effective if you have the right message and can deliver it quickly. There is a difference between “junk mail’ and sending an important letter offering help to a distressed homeowner. It is important to deliver your message quickly and effectively in the first couple sentences.

1. Personalize your letters – using what is called Variable Printing. You can now send the same letter to thousands of people while still personalizing the letter. Variable printing will allow you to just change the salutation and/or name on each letter. So the letter doesn’t just read “Dear Homeowner” but instead “Dear Mr. Johnson”

2. Convey your message early and often. Make sure you empathize with the situation they are in and quickly tell them how you can help.

3. Give them a reason to call. A “call to action”. Call today for a free consultation. It might sound over used but these people are in need of your help and if you can offer them a free consultation as to what to do, people will jump into action. Your main goal is to just get them to move off the couch and call you!

4. Make it easy for them to contact you. Toll free numbers are crucial here. One number big and bold.

Loan Modification Direct Mail on a cost per call basis can be one of the most effective ways of putting you in touch with troubled homeowners. Remember the two aspects of direct mail, who you are mailing to and what you are mailing them. Get this right and you will have yourself a very effective campaign.

Property Investments – Direct and Collective Investments

Investment Options

Access to property investments is well-established, with a range of direct investment opportunities and collective investments available for both retail and institutional Investors alike. In the first instance we should look to the range of property sub-sectors available for consideration, and further investigate both direct and collective access points for the sector in general.

The main property sub-sectors that may be available for smaller investors are:

Residential
Commercial
Student Accommodation
Care Homes
Hotels
Leisure / Tourism
Development
Agricultural
Forestry
Within each sub-sector lies a range of possible entry points for Investors; broadly categorised as either direct investments or collective investments. Collective investments being either regulated or unregulated fund arrangements, where Investors capital is pooled so as to acquire a basket of assets, or participate in a project with a large capital requirement. Direct investments on the other hand are simply straightforward acquisitions of property assets by the Investor. There are, for example, funds for residential, student accommodation commercial and most other sub-sectors, and likewise, there are options for Investors to directly acquire investment properties in each of these sectors via freehold or leasehold title.

Direct investments – Simply the acquisition of property assets by the Investor, direct property investments take many forms; from the acquisition of property for improvement and sale; through to acquisitions for leasing/rental to a tenant or operator. For the Investors with sufficient capital or finance, direct investments remove the majority of risks specific to collective investment schemes where Investors are reliant on the external management of a property portfolio. Direct investments do however carry asset-specific risks; property assets can incur significant financial liabilities including on-going maintenance, tax and round trip purchasing costs (the cost of buying and selling an asset).

Property investments, especially direct property investments, provide the Investor with a level of security that paper-based investments do not due simply to the fact that quality property assets retain capital value throughout the long-term, which in the case of well-chosen properties in good locations, is unlikely to fall and cause the Investor a capital loss. Provided the Investor is prepared and capable of tolerating the illiquidity associated with physical property assets, this asset class provides true diversification out of traditional financial assets such as stocks bonds and cash.

For the direct Investor, careful consideration should be given to the due diligence process during the asset identification and acquisition stage, as in most regions this will require specific professional input from legal practitioners, surveyors, valuation agents, and in the case of niche property investment projects with a specific strategy Investors must also consider the counterparty risk in that in many cases Investors might be reliant on the performance of a strategy manager to achieve the expected returns from investing in their strategy.

Collective investments – Property funds come in all shapes and sizes, and invariably involve a Fund Manager acquiring a basket of properties in line with the fund’s investment strategy, and managing those assets on behalf of Investors in the fund. There are funds, both regulated and unregulated, that invest in all of the major property sub-sectors. One can find opportunities to invest in residential real estate, student accommodation, care homes, commercial real estate, shopping centres and property developments. Some of these funds cater only to large Institutional Investors, whereas other offer lower entry levels for smaller Investors.

The structure of collective property investments varies from fund to fund. Some are highly regulated affairs, established and operated by major asset management groups, others are small, niche operations established to capitalise on current short term opportunities or niche sectors or markets. Collective funds may be listed on an exchange, allowing smaller Investors to trade in and out of the fund as and when they please. This removes the potential illiquidity associated with the property asset class, however this also detracts substantially form the returns generated from the underlying property assets as some capital is never invested in order to ensure that redemptions can be made from cash without liquidating part of the underlying portfolio.

Whether listed or unlisted, regulated or otherwise, collective investments in property assets offer access to the asset class for the smaller Investors, although in many cases the cash flow dynamics of securitised investments differ greatly from direct investments in property assets.

There is an excessive amount of traffic coming from your Region.

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