The Key to Wholesale Deals

Posted on May 01, 2010 by Torrey

Greetings everyone from the green city, Greensboro, NC. I’ve learned so much lately on being an entrepreneur. There is much to learn and even when you are successful you are still constantly learning. As an entrepreneur, I realize in order to be a successful wholesaler I must conduct a ton of marketing, volume. When I say volume, I don’t mean mailing 100 – 200 letters or putting out 50 signs. I mean you have to flood the streets with your marketing. This can be done by mailing 2,000+ letters/mo, putting out 300+ signs/mo, and/or sending 400+ offers out per month. Volume is the key when seeking wholesale deals.

In February I challenged myself to make $75,000 in 90 days, a challenge similar to what Jason Rodriguez and I embarked on in late 2009. I must admit that after awhile, I began to loose focus. Looking back at it, I would change the time frame from 90 days to 30 days and the monetary goal from $75K to $25K in 30 days. This would allow me to focus my concentration for a shorter period of time. But overall, I did get a couple of deals closed in my own personal challenge. This self challenge was very healthy and educating. Based on my marketing, I realize that for every 100 signs I put out, I get about 1.5 deals. This is important to know because each market is different. So you must test your market to see what is the average response rate for your marketing pieces.

I put out 100 signs in my area. Out of the 100 signs, I got over 50 calls easy. Most of the calls were indeed junk, meaning no equity, seller stuck on stupid, or just not good deals. But when I did get a call from a seller that just wanted to sell, like yesterday and willing to sell at a significant discount, it was well worth the effort. I learned to keep all my leads and follow up with them monthly because people’s situations change. The numbers show that once you contact the seller in the 4 – 5 follow up, your chances of getting a great deal are significantly higher. But you have to be a “Go Getta”. This is serious business, you can’t be fucking around. I don’t go see a house at all, Period! Number one, I don’t have the gas to be riding around viewing homes. Number two, most sellers are not motivated enough for you to waste your time. If I go to a house, I’m going with the intention of getting it under contract, I don’t get paid to look at houses.

My 90 day challenge ends in Mid May, just a couple more weeks. So far I’ve closed 2 deals specifically from my “challenge” marketing. My total take thus far is around $14,000. I will close on one more deal by the end of the challenge. I will let you know how that goes in a couple weeks.

I’m focusing my marketing on two specific strategies and I’m going to work them hard. These two strategies include bandit signs and probate marketing. Here is my take on bandit signs, “if no one is complaining about your signs, then you are not putting enough out”! People should be calling you complaining that your signs are everywhere, and then you’ll know that you’ve put out enough to attract some attention. I’m in the process of ordering 300 signs and going to flood Greensboro with blue and white signs. I spoke with another investor and he said he hates signs. That’s because he only put out 40 signs. But that’s fine with me, less competition.

Let me recap on the keys to wholesale deals. Number one, you have to do a ton of marketing. Picking two forms of marketing and focusing on them has worked well for me. Number two, the money is in the follow up. This is where ivnestors loose their head at along with stacks of cash. Do a ton of marketing and follow up on your leads every month to 45 days and you will be on your way to big pay days.

I’m out marketing so the next seller can find me. “I’m here Mr./Ms. Seller, CALL ME….”. This is the life of a “Go Getta”, damn right I’m a “Go Getta”! Are you?

Tags: bandit signs, entrepreneur, real estate marketing, Torrey Brothers, Wholesale real estate

Discussion: 1 Comment

One Response to “The Key to Wholesale Deals”

Find Motivated Sellers

- 19th Aug, 10 12:08pm

Torrey you are exactly right. The key to making money in real estate is marketing. You must know how to find and attract motivated sellers as well as motivated buyers.