I live in California and also own real estate in Ohio. I am new to the wholesaling side and was wondering if any wholesalers or investors could tell me what is the average number of leads it takes to get a good wholesale deal that will close with an end buyer/investor? I am looking to wholesale in both CA and OH. Thanks!
If you are in Southern California, I will take any leads you do not want and we can see how we can work together.
I got a list of absentee owners here in central California, I sent out 400 yellow letters and got a huge response, maybe 50 or 60 calls, most were junk but I did get one junker on contract an flipped for $2,000 and I have a stack of leads to go back thru. I can crank out 18 yellow letters an hour, it took some time. Now, I got a helper, I give her 25 cents Per letter and 250 bucks for any deal I get.
Thanks for the responses.
Satarnag, I’ll take you up on that offer once I get up and running. What areas of So. Cal are you looking for leads in?
Randoskie, I plan on doing the absentee owner list from my title company. Your response helped me get an idea of the numbers I’m looking at.
The old adage is that this is a numbers game. And thus, I used to tell my students that they need to be looking at a minimum of 100 leads per month. I’m not completely sure that number still applies, given the various ways to flip a house these days. But, it’s still a good number to shoot for, I would think.
Going by the expert Sean Terry, you need to talk to about 25 leads before you find a good deal. So if you send out 250 yellow letters (average response of 10%) you should get at least one deal out of it.
And this is an overall average. So it might take more than 25 leads to get a deal when you first start out. However, it will all even out in the end. And when you get more and more experienced, it might take you only 10 leads to get a deal.
I was curious to how you got the list of absent owners
I have my real estate license so I have a title company I have worked with for a long time and I get the lists from them.
Thanks everyone for your input!
It really depends on the quality of your lead source. It can be different each time. What you can do is apply all kinds of marketing as much as you can and for sending out direct mail, try to track which lead source generates you the most number of responses and focus on it more.
I would definitely have to agree with the Maestro on this one, for surely this is a numbers game. I use a direct mail campaign and usually send out over 500-750 letters a month and usually get about 20-35 responses. Depending on if the responses are good enough I will usually get about 2-4 deals out of it. I have other mediums for adveritising as well, that makes up for the lack of responses I’ve been getting. If the response is not good I usually nail down 1-2 deals out of it. The more letters you put in the mail, the better response you will have.
To your success! :smile
Mrflippa, Are you mailing yellow letters or some other type of letter?
It might take you 20-25 leads to get a deal of you are doing traditional marketing like bandit signs, newspaper ads, etc… but out of the rest of them leads, you might get another one or two later on down the line, so make sure follow up is a good part of your strategy also.
Yeah I know follow up sucks. :eek2 but it is profitable.
my experience has been…
- Realtors 1 in 7 - keep in mind ive trained them on what specifically Im looking for.
- PPC can varies between 20-40 leads depending on how targeted my keywords are
- Craigslist doesnt rally have a conversion as I normally contact the owners myself
- Bandit signs 20-25 calls or roughly the same number of website visitors.
The key ingredient of course is targeting, qualifying and disqualifying your leads with good marketing.
It really depends on the local market you are looking to wholesale in. Depending on what form of marketing you implement, response rates will vary. Your traditional yellow letter should get you the best type of response you are looking for. If your budget allows, send out at least 150-200 yellow letters direct mail.
Depending on your market, you may recieve anywhere from 3-6 phone calls. Out of those potentials, you may contract just one deal, but thats ok! One deal can pay you anywhere from 5-15k. To your success! :smile