Look I’m just gonna lay out there and I want you to give me your honest opinion. I’ve tried the wholesale game for the last sixty days and I’m just not making any head way. I don’t have much money, I mean I don’t have MUCH money!! I’ve tried all the traditional marketing i.e. Bandit signs (good areas, bad areas, old areas, new areas), handing out business cards ect. But the phone has not been ringing!! I have very realistic and controllable goals but the same question keeps recurring…Can someone like me with no money succeed in the Wholesale business?? I don’t know if I need a kick in the butt or a pat on the back but I’m scared of failing with this! Has anyone else been where I am?? Can you give me some advice/help?? PLEASE!
Thanks for the message HighTide.
First, keep at it! You’ve been taking action and getting feedback on what has been working and what has not been working. You’re so close. If you have not read “Three Feet From Gold” I might suggest that. Or, for a MUCH shorter read, try reading “The Carrot Seed” (yes, the children’s story) or watch the YouTube version:
http://www.youtube.com/watch?v=5th7XdXMe2o
With that being said, I can give you some feedback, but I am curious to hear in more detail about exactly what you did. It is not enough to say I did “Bandit Signs”… if you put out 10 and thing you’re going to buy a property without any experience, I think that is a pretty optimistic outlook. It CAN be done, but it is optimistic.
Here’s some feedback on marketing in general:
- You should buy a house for every $500 to $1,000 in marketing you put out. Can you do it for less? Sure, you can do it for free if you focus solely on doing activities that require little money but a larger investment of time. But if you spend $500 to $1,000 on a good direct mail postcard you should generate enough calls that you can find a few sellers were you can add value and be of service to help solve their challenge where it is win-win for everyone involved.
- It can vary widely, but for every 100 bandit signs you put out you should generate enough calls to buy a house.
- I don’t have a good gauge on business card numbers… they’ve been hit or miss for me over the years and I don’t use them in such a way that I have good counts.
- For door to door flyers or post it notes, if you should buy a house for every 1,000 to 1,500 you put out.
Please let me know what you’ve been doing and what results you’ve gotten so far so that I can help provide better insight and help.
Thanks James for your feed back!! I mean it!!
On average I put out 25 bandit signs per week. I have not done any type of direct marketing due to the cost. What’s the cost on average per card?? What constitutes a good marketing card?
I have a six house (Wholesale) goal for this year with a $3k to $6k average. Would you consider these two goals to be realistic?
Thanks again James!
Thanks for the reply HighTide.
What do your Bandit Signs say? How many calls have you been getting on putting out 25 per week?
The average cost to put out postcards is about 35 cents per card. I posted a sample of mine on this forum before if you want to look at my previous posts or let me know and I can try to find it to send to you.
You definitely can wholesale six houses in a year. You’re profit range while certainly is achievable, I like to use $2,000 to $5,000 as a typical range. Can you do higher value ones… sure, but for averages I tend to skew it down a bit myself.
You can do it. Just focus on what is working and turn your back on what is not so you can focus on things that give you what you need to move forward.
If there is anything I can do to help, please let me know.
Are you using white bandit signs or yellow? I suggest going with yellow ~ You’ll get a better responce. Where are you putting the signs? Can you use a sign stapler and tack it to the power pole up high? Maybe if the people saw your signs up longer, it would help? Yes, what’s your message on these signs? Eric Bodiwalla did an example of some bandit signs ~ very creative I think. I can also email you some samples to use, too.
Here are a few youtue links below:
- This show you what to put on Bandit sign for cash buyers, where to put them, etc.
http://flipcrushers.com/site/128/flip-crushers-cash-buyer-getting/
- Here is a video links for attracting sellers (bandit signs)
Despite what the “gurus” preach, (and try and sell you), wholesaling isn’t a walk in the park for the new investor. It’s damn difficult, in fact, to talk a homeowner into selling you a house for .35 on the dollar. If you haven’t done so yet, take a look at using lease options and Cooperative Assignments for getting started. Much easier path to follow.
Ditto. HighTide There will always be a very limited amount of houses that you can contract at a truly wholesale price. Even if a particular seller would love to let you steal the house they probably owe too much on it anyway. A lot of equity vanished into thin air since 2006. Don’t get me wrong the deals are out there but there are only so many houses you can steal.
May I suggest you learn not only cooperative assignments as AJ suggested, but all other facets of creative flipping, such as subject-to, seller financing, options, sandwich LOs, etc. The more exit strategies you know the more deals you’ll be able to do. Ponder this: for every wholesale deal out there, there are probably 10 other types of deals that you’re completely passing over simply because you’re only looking for junkers to steal.
I didn’t take any courses, buy any videos or have mentors. I go on different websites, look for lowest priced homes, in fair condition. I like REO"S, they are easy. Ok find one say $20,000 has a zestimate of $100,000, check out the comps. Then call the agent, ask them to check it out for you, and you’d appreciate any pictures. Now say its been listed for 9 months – est. 10,000 repairs, propertiy in area selling around $110-140,000. Make a low offer( because listed for 9 months) --offer $$13,900 bank will either except or counter with $15,000. Take it with contract being contingent upon finding buyer. Now fly it through all we buy houses etc. on internet and all investors you know. Sell for $25,000 plus $10,000 repairs, valued $100,000 making sure you state they will have $65,000 in equity. I do it like this everyday, no problems.
Do you use your own contracts?
How much money do you put down on a bid?
I just ran into the situation where I only wanted to put down $100 and it came back that I could not bid unless I gave a $1000 check with the offer. The check would not be cashed unless the bid is accepted.
Another tip (especially if you’re broke): ride around the low-income areas and look for ugly, abandoned houses and try to track down the owner. All it costs is a lil gas.
“Winners Never Quit and Quitters Never Win” Keep up the work, you must be tenacious to achieve success.
HOW TO BE SUCCESSFUL
There was this guy who wanted to be successful and was being mentored by this Guru. Now the Guru told him to meet him at the beach at Four in the morning. Now the student was thinking to himself, “I don’t want to go swiming I want to make some Money” The Guru told him “If you want to make money, meet me at the beach in the morning” So the student did as he was told and met the Guru at four in the morning wearing a suit…on the beach. The Guru told him that he better not care if his suit gets wet. Now the student was thinking “This old Man is Crazy, he may be righ and successful, But Crazy!!” Nontheless, the student did as he was told and toke his suit off and was standing there in his underwear. So the Guru and student walk out into the water where the water was about waist deep. Now the Guru told the student to walk out further. Now the water was just bellow head level. Now the Guru told him to walk out even further. Now the student didn’t swim well but did as he was told and the Guru held him above water. Suddenly the Guru pulled the Student Under water and held him there. A minute passed by and now the students was frantically trying to get up. Finally the Guru brought him back and brought him to the shore. Now, while on the shore, the Guru asked the student what he was wanting more than anything when he was being held under water…
what do you think he wanted…
the student said “air”. He wanted to breath and have air, and thats all he wanted and all he was thinking of.
The Guru replied "now when you want to be successful as much as you needed that air, that is when you will succeed.
You have to want to make your wholesale business work as much as you need to breath. Don’t just put out 25 signs a week. Pur of 50, 100. Any obstacle you come in contact with plow through it. Look into writting yellow letters to absantee owners, inheritence list, probate, preforeclosure, and don’t just send out a couple letters send out 300 letters. Drive around to find vacant houses and look them up through your tax assesors and mail them a yellow letter. Stay tenacious and you will get a deal. Then you can broaden your marketing and hire bird dogs. Keep up the good work, post ads on craigslist, backpage, and kijiji…we buy houses and whatever city you live in.
God Bless
You have taken action and that is number one. You need to push harder. Yes I love yellow signs. Not saying that it makes that much of a difference, just get out there and your number dialed. Keep going. Its crazy you did not get many calls with bandit signs. You have to have some money to market. Signs are cool because they are the cheapest bang for you buck and will get you more eyes than a newspaper ad.
Despite what the “gurus” preach, (and try and sell you), wholesaling isn’t a walk in the park for the new investor. It’s damn difficult, in fact, to talk a homeowner into selling you a house for .35 on the dollar. If you haven’t done so yet, take a look at using lease options and Cooperative Assignments for getting started. Much easier path to follow