Question for Experienced Wholesaling Vets..Marketing Strategy?

Question

Hi,

As a newbie in the RE game, Im exploring wholesaling for now, and have come to realize that Marketing is essential and probably the core of having success in this..So my Question to all of you experienced Wholesaling investors out there is, What marketing plan worked for you? and why did that do the trick? Thank you in advance!

Mark Elkins · Answer

Hey Jake!  All the previous listed ways to market will work if you are dedicated to the practice of sending letters and following up.  When I started, I didn't have that kind of patience.  I wanted instant results!  Remember, this is one of the few industries that you can begin working in today with no money or credit and have large profits in by tomorrow.

The very fastest way to build your numbers of people to sell your wholesale deals to is to write down the number from or photograph every "I buy houses" sign.  Look through Craigslist for the I buy houses ads.  Every one of these people is a wholesaler of fix and flipper looking for their own inventory!  They may also have inventory for you to wholesale to your buyers.  Just call and ask what their criteria are and if you find a deal that meets their needs, they will be glad to take it off your hands and leave you a profit.  These are the guys to network with!  Since they already have the cash or are connected to cash you can leverage their network.  Most are glad to let you do this if they are also profiting.

The next step is to find and join every REA in your area.  You don't actually have to join the ones that are farther away, just show up for their meetings from time to time.  They all have networking time and time to talk about their deals or criteria in every meeting.

These two steps will give you enough leads to get working and making money right away.  Afterward, if you have the time and patience to write letters and build an email list and whatever, you can do that to supplement your marketing efforts.

Feel free to contact me if you want more information!  I am glad to help.

Mark Elkins · Answer

Jake,

4 responses to 120 letters are awesome!  You don't have to be special on the phone just remember that these people called you hoping that you can help solve their problem; this house they don't want.

You can ask any questions you like.  It doesn't matter.  Just be certain you ask these 2 questions in this order.  You might not even have to ask the second one by the time they answer the first.

1) Will you please tell me about the house?

You are looking for physical characteristics but they may also tell you all their problems!

2) Why are you selling?

You will never be able to make a deal without the answer to this question since the answer is about what they want and the problem they are trying to solve.  If the seller won't tell you why, you probably won't have a deal.  Before you give up though you can rephrase the question as "Please tell me the story of the house?"  If they want to know why you ask, just say that you like to know the history of places you buy.  With no answer, tell them you'll consider it and move on to the next.  If they won't be forthcoming, they're not a distressed seller and you only buy from distressed sellers.  Distress isn't the same as panic so be careful!

Good Luck!

Mark

Jake K. · Answer

Hi,

Great! ty so much for your advice!

Eric Percival · Answer

Cornell,

That's a 3% response rate.

Usually people get 1%. Your're doing good if you get 4-5%

The response rate also might be affected if you send mail cards instead of letters or if you hand written the letter vs computer print out.

If you increase your mail outs to 500 or 1000 you can close at one deal from that 4-5% call back rate.

I know it's expensive for someone new to RE wholesaling

Eric Percival · Answer

In regards, to your conversation, definetly try to improve it. RE investing is all marketing!! Marketing for deals, Marketing finance, marketing to sell.

Rehearse your script and try to make a list of all the objection you think a seller might have, and have the solution.

Learn from if each call, and ask yourself how could've it gone better

Jake K. · Answer

Hi Mark, Awesome advice! I have very limited funds and sending 1000's of letters right now seems daunting bc its just going to be expensive, so I will give that a try..I did attend a couple REIA's recently, didnt join any yet though..thanks again

Jake K. · Answer

Hi Kerry, ty so much! May i ask what the best source was for you to get that information? ty

Elliot Smith · Answer

I would say that marketing is important and I would look at using open letter marketing for that. More important is how you handle the leads when they come in. How are you on the phone? Are you looking to make money or looking to actually help the seller? Can you build rappor with them quickly and get to the root of why they need to sell? Relationship skills are very important in this.

Cornel Smith · Answer

I've wrote letters. Mailed to absentee homeowners with 50% of more equity; got the list from list source. Mailed out 120 bout a week ago. received 4 calls thus far. Need to improve my phone conversation(s). Probably should of done this sooner; but looking to more experienced investors to assist me.

Kerry Baird · Answer

Direct mail to motivated sellers, such as probate, divorce, late payments on mortgage, tax liens.

Door knocking pre-foreclosures (in a fast foreclosure State)

Question for Experienced Wholesaling Vets..Marketing Strategy?

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