There are several benefits to focusing on subprime mortgage leads.  One good reason for generating subprime mortgage leads is that the borrowers are less likely to shop your offer.  Also, the commissions on subprime mortgage cash advances can be quite lucrative.

I’ve found that one of the best ways to create subprime mortgage leads is by direct mail.

So let’s look at the steps involved in putting together a profitable direct mail campaign to create subprime mortgage leads.

Prospect List

There are two sources I recommend for obtaining your mailing lists – list corporations and credit agencies.

Here are two sample criteria to request from list corporations in order to target subprime borrowers:

1) Get a list of house owners who have just filed a chapter 13 bankruptcy.  Do a cash out refinance and pay off their chapter 13 bankruptcy. Individuals that have shown interest in How to create 25 Qualified Subprime Mortgage Leads Every Day have also shown interest in no credit score loans. A new approach to no credit score loans is beneficial.

2) Get a list of individuals who originated a cash advance with a subprime lender at least 2 to 5 years ago.  Their pre payment penalty will be expired and they will be ready to refinance.

Here are two list ideas when working with a credit agency to obtain your subprime mortgage lead mailing list:

1) Find houseowners who need help with their finances.  Get a list of houseowners who are currently 30 days late on their first mortgage cash advance.  Or, get a list of house owners who have a certain number of consumer lates 30, 60, or 90 in the past 6 to 12 months.

2) Select borrowers with a low credit score.  You select the credit score range based on your cash advance programs.

Combine these with other criteria to better target your prospects.  Here are two more list criteria ideas:

1) houseowners with $15K to $50K outstanding revolving bills
2) Properties that have an LTV of 80% or less

Mail Piece

Here are a few important fundamentals you’ll need to incorporate into your mail piece:

individualalized content

* Give sample payments. 
* Tell them how much money the new cash advance will save then monthly and over the next 5 years.

Tell them about your unique selling propositions (USP’s)

* 1% mortgage cash advance options

* debt consolidation loans
* No closing cost options
* No payment for 2 months
* Are they already approved?  If so, let them know in the letter

Be sure to comply with the state banking regulations in your area. Include the following in your mail piece:

* Equal housing lender logo
* State license number
* Disclose APR’s

Share some individualal data about yourself under your signature

Your title
Years in the mortgage business
Awards you’ve received
Degrees or certifications you’ve earned
Hobbies
Interests

Here are examples:

Your Signature

Your Name

Senior Mortgage Planner
10 Years Mortgage Experience
Licensed Financial Planner
Married with 3 children
Single mother of two
Youth basketball coach

Use Split Testing to Improve Your Conversion Rates

Now that you have a list of prospects and a mail piece, it’s time to mail.  The secret to direct mail success is testing.  If you test different elements of your direct mail campaign, you will find ways to increase conversion rates. Over time, you will have a mail campaign that will create huge returns. Good use of short term loans can be great for some people. The key is to comprehend short term loans .

How to conduct Split Testing

Instruct your printer to separate your list into 3 groups:

1) Group 1 will be 80% of your list
2) Group 2 will be 10% of your list
3) And group 3 will consist of the last 10% of your list  
4) Make sure the groups are randomly selected

Next…

1) Mail your original letter to group 1 
2) Make ONE very small change to the original letter and mail it to group 2
3) Then, make another very small change to the original letter and mail it to group 3
4) Track your results and see which version of the letter had the highest number of calls, applications, cash advances originated and cash advances funded.
5) Make the winner your original letter and start all over again

Do you see what you have just done?  It’s called split testing.  If you do this consistently, you can continue to increase your conversion rate, get more leads, fund more cash advances and make more money!

Here are some ideas for changes:

* Use a website address instead of a phone number
* Use a website address with a phone number
* Add a heading
* Change one paragraph.
* Experiment with the PS
* Offer a coupon or something for no cost (appraisal, processing, etc)
* Add Red Headlines to your letter
* Use different envelopes
* Talk about different and unique USP’s

Be sure to only make one small change at a time.  If you make massive changes you won’t know what specific change affected your conversion rate.

Don’t underestimate the power of this testing.  If you mail 2,500 letters a week, a 1% increase in response will give you an extra 25 calls per week.  That’s an extra 100 calls per month.  At a measly 10% conversion rate, that’s an extra 10 cash advances per month.

That could easily equate to an extra $50,000 to $90,000 in commissions every month!

I am confident that a strong direct mail campaign will help you create more subprime mortgage leads.  Try these tips and you’ll be amazed at your results!

Please feel no cost to reprint this article as long as the resource box is left intact and all links are hyperlinked. Problems around no credit check card can sometimes be sorted out with a little homework. Once you have a better grasp of no credit check card you can make more money.