Wholesaling: Cold Calling

[Cody Evans]

Hi BP,

I'm taking massive action even though it is making me feel very uncomfortable. Can you help ease me by giving some cold calling advice? I've dropped off 40 postcards since Wednesday and havent gotten any calls yet. Is this normal? Many of my properties are vacants so I understand if they dont call but I would think Id have one phone call even if it didnt go well. All the houses on my list are preforeclosures with equity greater than 30%

It is because of this that I want to come up with another list of people to just cold call. What should I put in on list source or whatever website to get a good list of people to call? I want to have a deal on the table of a title company by the beginning of February but need the money from a deal absolutely no later than April. 

Your advice is greatly appreciated. 

[Jay Hinrichs]

Not nearly enough contacts... when we did pre foreclosure work like this when it was legal.. we knocked on every NOD in the 2 million metro with a team of 2 man and women.. even with that amount of man power this led to one to 2 deals a month.. the chance you will get one deal in 40 is remote at best and waste of time most likely.

And if we were of the mind to try to flip them to investors we would have gotten maybe one deal a year.. you need actual cash to make this work.. the people are to squirrely to do the normal wholesale process. 

Keep in mind that anyone in CA that has an NOD has gotten no less than 100 letters sent to them by the time you drop yours off. all of them saying the same.. thing canned pitchs guru's teach.. by the time they read about 20 of them they realize folks coming to the door or sending letters are NOT out to help them because they were broke or in foreclosure like they were.. they are out to rip their equity..

the ONLY way we made a business of it was to snag these within 2 to 3 days before the actual sale.. when they had no choice and reality of losing the home was real.. and to do that we needed to be able to write checks and take title sub too with out the help of title companies.. its a very advanced strategy that requires a boat load of capital to make any money at. 

on top of all of this are you familiar with the laws in CA about working with pre foreclosures if you are not you better get up to speed you can't just HELP these poor people out..   same in Or and WA.. there are very strict rules regarding this work.

Also keep in mind many good realtors work these list as well.. so your up against professionals who will list and sell for top dollar not a wholesaler trying to rip equity.