One of the questions that people often ask me in our Land Profit Generator Facebook Group is: “What Are Blind Offers and Neutral Letters in Real Estate.” In this episode of the Forever Cash podcast, we explore these two quite different strategies.
What is a Neutral Letter?
Let me tell you about our proven, tested, Land Profit Generator neutral letter. When you start your land flipping business, you pick certain areas (called counties) in the United States based on:
- growth rates
- activity levels
- values of properties
This data-driven approach gives us valuable insight into how the targeted market will likely perform. Once you have identified a county that looks good on paper, we test it be see 500 to 750 neutral letters out, asking people to call us if they have land they’d like to sell. Then we get responses back, and, based on those responses, we can tell which areas will get us a lot of deals and make us a lot of money.
What Is Involved in Making a Blind Offer?
What is the difference between a blind offer and a neutral letter?
Well, a blind offer is where you look at a list of properties, choose one, and make an offer. The seller has never heard from you and has never indicated that they want to sell. You just send them an offer.
To get this offer out, you have to find out the ballpark value of the property. Let’s say you’re going to research 500 properties and send out your offer. These properties aren’t all going to be the same. They’ll each have different:
- Access to utilities
You might have a property that’s ¼ of an acre but worth $50k. Another property might be 2 acres and $10k. Let’s say it takes 10 minutes to research each property. That’s roughly 80-90 hours. If you’re doing it full-time, it would be two full work weeks. If you’re doing it a couple hours a day, it’s going to take you two months. This is all before you even send out an offer.
We all know that time is money. A better use of your time would be to send out 700 letters for $400. You don’t even know if those 80 hours will be worth the time and effort.
Following Up Neutral Letters with Blind Offers
So, you’ve sent out our proven, tested neutral letter. Let’s say 5% of the people call you back. Of 600 letters, you’ll get 30 phone calls. Now, you do research on those 30 instead of 600. For about 25 to 40 offers you make, you get one accepted. And, over time, you can improve that.
Once you do some deals in the area, and you become more familiar with what properties are worth, then you can send out blind offers on other properties nearby. You already know what you can sell these properties for, and you already have people lined up looking for properties. At this point, there’s no more need to send out neutral letters. In that particular pocket, you can switch to the blind offer.
So, here’s what you do in the simplest terms:
- Drop the mail.
- Get some calls.
- Do a little research.
- Send offers out.
It’s much less work, much less overhead, and much less time commitment. This is a much simpler and efficient way of doing business. It’s not just a one-trick pony. It’s a skillful, scalable, tested method that works for any size deal.
- What deal-to-offer ratios our best coaches are getting
- How to turn your crapshoot blind offer into an educated offer
- What you’ll learn in our Land Profit Masterclass