Marketing for Wholesale deals what to expect from the numbers

[Mark Ancerewicz]

Hello BiggerPockets Community. I first want to thank everyone on here that takes the time to reply to this forum. Because of you I have learned a wealth of information. Because of all your sharing I have not needed to make any posts until now. Now is the time for me to take action and go all in! I was hoping for a little clarification on what I should expect from my marketing pipeline as I'm getting ready to invest in a yellow letter marketing campaign. I have $2,500 to get my business started

My objective is to write a contract on 1 SFH per week for wholesale. I

- How many offers do I need to make to put 1 house under contract?

- How many calls do I need to receive to find my required number of motivated sellers to make offers to?

- How many letters do I need to send to generate the required number of calls?

My estimates based on the things I’ve learned from this site are:

- 10 offers = 1 Contract

- 50 Calls = 10 Offers (Motivated Sellers)

- 500 Yellow Letters = 50 Calls

Also, just because I do find 10 Motivated sellers, I would assume not all 10 will be worth making an offer on? How should I adjust my estimates to reflect this? Will I need 15 motivated sellers to find 10 that are worth making an offer on?

I saw a post today that mentioned not going too big too quickly. Am I being to aggressive for my first big mailing campaign based on the above information? Initially I will be taking all the calls personally for the experience and will soon thereafter put systems in place to automate this a little more, but for now I’m not scared about receiving 50 calls/week. I’ve been in sales for a long time and I understand what it means to make 100 dials/day, so generating 50 calls/week doesn’t seem like too much to handle but I’m open to your thoughts. At the same rate if I get a 20% response rate, 100 calls my first week might be a little overwhelming, and if i only get a 5% response rate, 25 doesn't seem like enough.

Over the last few weeks I’ve been “driving for dollars” and made a list of about 40 houses that looked vacant. Of those properties 10 were absentee owners that I sent yellow letters to and generated 2 calls. One was slightly motivated but wasn’t in a financial crunch so he didn’t have to sell. The other will be in a difficult financial situation within the next 3 months so there’s more motivation. Still negotiating with her, so hopefully I’ll have my first contract by next week.

Thanks you in advance for your advice and opinions.

[Shariyf Grevious]

1.) Follow up skews numbers a little, a lot of the good investors on here do a TREMENDOUS amount of follow up

2.) Multi Touch is also key, I think you need to figure out how much can you spend for 6 months straight without seeing any return before you can expect to get a deal.

3.) Speaking of numbers I dont know who said it, but someone said that a newbie should expect 1 contract out of every 90+ calls to a TARGETED list.

4.) Check out Jerry Puckett and @ Michael Q. for help with sending yellow letters.