Quick answer: Yellow letters are short, handwritten-style notes on yellow lined paper that wholesalers mail to owners of likely off-market homes. A good letter is under 120 words, names the property, says who you are, and gives one way to reply. Track cost per reply and per contract. DispoKey JV then matches a buyer within 72 hours for 60% of the fee to you.
- Pick one tight list: vacant, inherited, tax-delinquent or tired landlord.
- Write a short, honest note with one call to action.
- Track replies by batch so you can calculate cost per contract.
What a yellow letter is
A yellow letter is a personal-looking note on yellow lined paper, usually in a hand-addressed envelope with a real stamp. It works because it looks like a neighbor wrote it, so owners open it more often than a glossy postcard.
That personal look is also its risk. The letter must not pretend to be something it is not. Federal law at 15 U.S.C. 45 bars deceptive practices, so do not imply you are a neighbor, a government office or a lender, and do not invent urgency.
Who to mail
Yellow letters work best on small, motivated lists rather than whole neighborhoods. Use public records and your own driving routes to build one list per batch.
- Vacant properties you or a partner saw while driving for dollars.
- Inherited homes from county probate filings.
- Tax-delinquent owners from the county treasurer's list.
- Tired landlords with code violations or long-term vacancies.
- Absentee owners whose mailing address differs from the property address.
Mail to the owner's mailing address, not the property, and remove anyone who has asked you to stop contacting them.
What to write
A good yellow letter is short, specific and honest. Mention the street, say who you are in one sentence, make one clear ask and give one way to reply.
| Part (example) | Sample wording |
|---|---|
| Greeting | Hi Maria, |
| Property | I'm writing about your house on Elm Street. |
| Who you are | My name is Jordan and I buy homes in this area for cash, as-is. |
| The ask | If you've thought about selling, I'd like to make you an offer. |
| Reply | Call or text me at the number below, or reply by mail. |
| Sign-off | Thanks, Jordan |
Keep it under 120 words and avoid claims you cannot back up. If your state requires a wholesaler disclosure, such as Ohio Revised Code §5301.95 for contracts, follow it in your contract and conversations. For calls and texts after a reply, follow 47 CFR 64.1200 and the Do Not Call rules in our TCPA guide.
What a batch costs
Cost depends on postage, printing and whether you write by hand or use a handwriting-style service. Check current USPS prices before budgeting. Compare against other channels in our direct mail guide and marketing budget guide.
Example: batch math
The numbers below are an illustrative example, not a benchmark. Your list quality changes everything.
| Step (example) | Count | Cost |
|---|---|---|
| Letters mailed | 500 | $650 |
| Replies (1.5%) | 8 | $81 per reply |
| Appointments | 3 | $217 per appointment |
| Signed contracts | 1 | $650 per contract |
In this example one contract from 500 letters costs $650 in marketing. If that deal pays a $10,000 fee through DispoKey JV, your 60% share is $6,000.
Keep your list clean
A clean list saves more money than a clever letter. Remove duplicates, owners who already sold, addresses returned as undeliverable and anyone who asked you to stop. Check each new batch against your CRM so the same owner does not get three different letters in the same month, and keep a suppression list that every future mailing is checked against.
Follow up
Most replies come from the second or third touch, not the first. Mail the same list two or three times, four to six weeks apart, and change the opening line each time. Log every reply in a CRM with the batch date so you can see which mailing produced it.
When an owner calls, use the conversation framework in our negotiation guide and price the deal with the MAO calculator.
Turn a contract into a closing
A yellow letter only pays when the contract closes. With DispoKey you submit the off-market contract, pay $0 upfront, and we match a cash buyer within 72 hours under our buyer-match guarantee. You keep 60% of the fee; we accept off-market contracts only. Learn more on the wholesaler page, or call or text (802) 618-0015 with your DK ID.
Handwritten or printed?
True handwriting gets the most attention but limits volume, while handwriting-style printing scales to hundreds of letters a week. Test both on the same list: split one batch in half, mail on the same day, and compare reply rates and cost per reply after 30 days. Keep whichever wins and test the envelope next, such as a real stamp against metered postage.
Whatever you choose, the return address and signature should be real. A real name and a working reply method build more trust than any style choice.
When DispoKey may not be your best option
If you already have a reliable cash buyer for the type of house your letters bring in, you may not need a JV partner. DispoKey fits when a letter turns into a contract and you want a vetted buyer quickly without building a list.
Key takeaways
- Mail small, motivated lists, not whole neighborhoods.
- Keep letters under 120 words, honest and specific.
- Track cost per reply, appointment and contract by batch.
- Follow up two or three times, and follow calling rules on replies.
Frequently asked questions
Do yellow letters still work for real estate?
They can on tight, motivated lists. Results vary widely by list and market, so track cost per contract instead of relying on industry averages.
What should a yellow letter say?
Name the property, say who you are, make one clear ask and give one way to reply, in under 120 words, with no misleading claims.
Are yellow letters legal?
Mailing letters is legal, but the content must not be deceptive. Follow state wholesaler disclosure rules and federal calling rules when owners reply.
How many yellow letters should I send?
Start with a few hundred on one focused list, then mail the same list two or three times before judging results.
Official references
- USPS: Postage prices (Notice 123)
- USPS: Advertise with mail
- Ohio Revised Code 5301.95
- National Do Not Call Registry for telemarketers
