I have done a few marketing campaigns (2-3) and I have not gotten a wholesale deal out of any of them. There are a few reasons why they didn’t work(poor follow-up, list not specific enough) so I am fine tuning my strategies and preparing for a new marketing campaign. My question is how much “good” marketing does it take to make one wholesale deal? I know it takes a collection of efforts (direct mail, bandit signs, etc.) but I just want to gauge how much marketing should I expect to put out before I make a deal.
Thanks and happy investing!!!
The first deal is usually the hardest because you are new and have no community rapport. What exactly is your marketing saying? You may not be effectively communicating with your marketing messages.
Also I am kind of confused about which stage of the wholesale deal you are in- the buying where you are looking for motivated sellers or the selling where you assign or exchange equity.
If you are still looking for motivated sellers, try going to your county courthouse and looking in the public records for probate properties, divorce records, and notices of default. these are where some of my best deals come from.
What are you currently using to market for houses? Sammual is right, you are just getting your feet wet. Its the golden time of your wholesaling days. Be confident and keep marketing.
I find bandit signs work fine. You may have to spend 100 bucks for a batch, but they will pay off. Trust me. :cool
I am at the stage of looking for sellers. In the previous campaigns I purchased lists and mailed to those. The first list I purchased my criteria must not have been specific enough because I got about 15 calls but all of them were from condo/co-op owners. The second list I was sending out the mailings to slow and the demographics were “old people” (sorry if I’m not politically correct) and they all wanted market value. Maybe if I would have followed up after a few months I would have gotten something. Now I am going to start going to the court house to find leads as well as doing some internet marketing.
I am also new to wholesaling and waiting to do my first deal. I read somewhere it takes receiving about 100 calls to do 3 deals. So I figure on 33 calls to my first deal. So far I have sent out about 200 yellow letters, gotten 20 calls, one of which looks like it might be a deal. I am targeting absentee owners in nice neighborhoods. If you are getting a lot of calls from sellers looking for top dollar, refer them to your realtor and see if there is a way they can pay you for the lead. Or you can find an investor that specializes in subject to or lease purchase options, and send the lead to them and have them pay you if they make a deal.
“How much marketing does it take to wholesale a deal?” the answer is It Depends. Starting out I know someone that landed their first deal on their first mailing. For me it took several months until I learned about marketing and sales.
To continuously assign contracts you need to be an expert in sales and marketing. So I would recommend studying those topics.
You need systematize your marketing campaigns and follow up with phone calls. Depending on the marketing list, I mail anywhere from 6 times to forever. The frequency of how often someone gets mail from me depends on the list.
On top of that you need to continue to network. In the begin start with real estate investors and realtors to build your buyer’s list. Then network with non-real estate people to get referral leads.
If you drive around a lot, get quality car magnets for all sides of your car.
Other marketing that we use is: websites (SEO & AdWords), online ads (ex. Craigslist), birddogs, door knocking, bandit signs, monthly workshops to home sellers/buyers (we team up with a realtor, mortgage lender, loss mitigation, etc), social media, phone calls, etc.
Screen baby screen. Screening calls for dollars is what I like to call it. But when it creates an income stream, you don’t mind screening calls. Get marketing out and let the calls flow in. It just like sifting for gold in your city. :brow