What you can't say on an investor mailer
By Josh MillerUpdated 5 min readDon't make your mail look like it's from a government agency, don't send anything that looks like a check without saying it isn't one, don't promise to stop a foreclosure, and don't state a preference for or against any protected group. Some states add their own rules, like Texas's requirement to tell buyers you're selling a contract interest and California's rules for anyone offering help to owners in foreclosure.
Investor mail lives on getting opened, which tempts people into tricks: envelopes that look like a tax bill, fake checks, "FINAL NOTICE" in red. Some of those tricks break federal law, and some state laws go further. Here's the list. This is general information, not legal advice. Check your state's rules with a real estate attorney.
Federal rules
- Don't imply you're the government. Federal law (39 U.S.C. 3001) treats mail that falsely implies a government connection as nonmailable, and requires a clear disclaimer on solicitations that look like government documents. A "county notice" look-alike is out.
- Don't send look-alike checks without saying so. The same law requires a facsimile check to say plainly that it's not a check and has no cash value.
- Don't fake a bill or invoice. A solicitation that looks like a bill has to say clearly that it's a solicitation, not a bill.
- Fair housing applies. The Fair Housing Act bars stating a preference based on race, color, religion, sex, disability, familial status or national origin. That covers your wording, your images, and which neighborhoods you choose to mail or skip.
State rules that catch investors
- Selling a contract: Texas requires you to disclose in writing to a buyer that you're selling an interest in a contract, not the property (Occupations Code 1101.0045). Illinois requires a license to wholesale more than one residential contract in 12 months. Other states have added rules since. State by state.
- Owners in foreclosure: California's foreclosure consultant law regulates anyone who offers to stop or delay a foreclosure, and its Home Equity Sales Contract Act requires specific contract terms and a 5-business-day cancellation right when you buy a home in foreclosure. Several other states have similar laws.
- If you hold a license: most states require licensees to disclose that they're licensed in their marketing, even when buying for themselves.
Lines to avoid
| Line | The problem |
|---|---|
| "FINAL NOTICE" or "Official Notice" | Implies a government or legal notice |
| "We can stop your foreclosure" | Foreclosure-consultant laws in several states |
| A check-looking piece with no disclaimer | Federal facsimile-check rule |
| "Perfect for young families" or neighborhood steering | Fair housing |
| "We pay more than anyone, period" | A promise you can't keep, and deceptive-practices risk |
| Mentioning the owner's foreclosure, divorce or a death on the outside | Privacy, and it embarrasses the owner |
What works instead
Say who you are, that you buy houses in the area as-is, and how to reach you. Plain, honest mail to owners who are actually likely to sell beats any trick. See which owners in your county are likely to sell.
Questions investors ask
Can I make my mailer look like an official notice?
No. Federal law bars mail that falsely implies a connection to the government, and mail that looks official without being so must carry a clear disclaimer. It also destroys trust when the owner figures it out.
Can I put a fake check in my investor mail?
Federal law requires anything that looks like a check but isn't to say clearly that it's not a check and has no cash value. Most investors are better off not using them at all.
Can I say "I can stop your foreclosure" on a mailer?
Don't. In several states, offering to stop or delay a foreclosure makes you a regulated foreclosure consultant, with contract and fee rules. Offer to buy the house instead.
Do fair housing rules apply to investor mail?
Yes. Don't state a preference based on race, color, religion, sex, disability, familial status or national origin, and don't target or exclude neighborhoods on that basis.