What did you do to grow your wholesale business?

Question

Good afternoon BP!

How did you make your wholesale business pop? What were you doing everyday that helped you grow the most?

Being new into the wholesale space I am always wanting to learn as much as I can. There's always more you can do to grow your business. Also, if anyone wants to hop on a call I am more than happy to do so!

Thank you so much in advance!

Steven Foster Wilson · Answer

Cold calling, if they were not willing to sell their property then I asked if they would be interested in buying more. More often than not the answer was yes. I got all of my first clients from cold calling and I still get more clients from cold calling. It is the best of both worlds, you are finding off-market deals while also gaining more clients.

Lydia R. · Answer

The best thing I ever did for my business was to outsource the cold calling. Increased the number of leads contacted per month. It's a numbers game honestly. The more people you reach out to the more deals you ultimately end up with. 80% of wholesaling is marketing, so the more marketing you do, the more leads you will end up with and ultimately the more deals you will close.

My other suggestion, the thing that really changed my conversion ratio was fine tuning my negotiation skills. When  I first started out, I was BROKE. I made all my own cold calls, did most of my own skiptracing with whatever free resources I could use. but it made me great at building rapport and negotiating with sellers. That is a skill that I cannot emphasize enough. You can have cold callers line up leads all day long, but if you cant close them then you dont have any deals.

Trent B Paul · Answer

Hey Katlynn,

I've worked with a ton of wholesalers in the market and my old team also had a successful wholesale department.

The key to success with them was narrowing down their efforts and time the most effective and efficient lead sources.

1st step is to utilize tools such as Mojo Neighborhood Search/Skip Tracer or similar features through other programs to narrow down contact info to exactly what is in your buy box and also only look at those properties owned 5-10+years, not owner occupied or out of state owners, lower LTVs and cold call/send direct mail monthly to these addresses to maximize the top of your lead funnel.

You could also Drive for Dollars and look in high value neighborhoods for unkept or obviously vacant properties that are not getting the TLC they need and also call and mail the contact info you find for the owners monthly as well.

Let me know if you have any questions around logistics or other tips for attracting more higher quality leads!

Katlynn Teague · Answer

@Steven Wilson Thank you so much!

Jerryll Noorden · Answer

1) Make more deals

The more deals you make, the more money you will get. You are scaling.

2) Increase the profit Margin per deal.

The more money you make per deal, the more money you will get, you are scaling

3) Close deals faster

The faster you close a deal, the more deals you will make per month, the more money you will get, you are scaling. It is not about making deals. It is about DEAL RATE!

4) Eliminate the cost to generate Motivated Seller leads.

If you completely eliminate the cost of lead generation,  your Net income is higher, you scale.

You can accomplish all of these things in one swoop.  Dealing with ACTUALLY motivated sellers takes care of all these points simultaneously.

As a scientist and engineer, I can tell you that to solve any problem you need to not listen to the sheep in front of you and start thinking on your own.

Dissect the problem into its most primary, basic and simplistic components and then evaluate and trace, the underlying issue and solve it.

The problem when the system is dissected all falls to finding motivated seller leads.

You thus need to understand what a motivated seller lead is.

A motivated seller is not someone that wants to sell their house.

A motivated seller is not someone that needs to sell their house.

It is not even someone that desperately falls on their knees begging you to buy their house.

A motivated seller is someone willing to accept an offer below market value regardless of the reason.

My point? You can't target motivated sellers. Can't.

So anyone and everyone that tells you to do cold calling, DMM, etc. etc. are wrong. This is not an opinion. This is a FACT. A data-backed FACT!

Don't believe me?

What is your deal success rate cold calling? 1%? (every 100 people you call, you make one deal). The true numbers are much worse than that.

So if you 10X your cold calling efforts, does your deal rate change? NO, it REMAINS 1% no matter how much you scale. Anyone that tells you to do these things are not giving you an answer based on mathematics, data, or fact. It is a mere opinion because the equations SHOW IT IS WRONG!!

How many of you are cold calling? How many of you make 4 deals a week? reliably?

You all can be stubborn and deviant, and that is on you. But those that actually want to scale, listen to me and start using analysis as the means to make decisions.

If you want to scale, you need to make sure you find a way to deal with actually motivated sellers. You can't target motivated sellers. The only way to get in touch with them is for you to make it really easy for THEM to find YOU!!

SEO, Facebook ads, YouTube Ads, Tik Tok Ads, Social Media posts, Creating value specifically directed to your ideal audience, and building a brand reputation.

Those things are what the grown-ups like Nike, Adidas, apple etc. etc. focus on.

Those companies do not focus on cold calling right?

Do you think it is a coincidence that they don't?

Want to scale? Start thinking intelligently, collect data, interpret that data correctly, use that data to come up with a hypothesis, test the hypothesis and create your motivated seller lead generation system.

I did EXACTLY that, and I get more leads for free in a DAY than most of you get in a month, and my leads are free, and of the HIGHEST quality.

Coincidence? No. Analysis!

Hampton Logan · Answer

Congrats on your 2nd wholesale deal; would like to talk re: lead generation for wholesalers. Do you have a contact number or email ? Thanks. Hampton Logan

Katlynn Teague · Answer

@Trent B Paul Thank you so much for all of the helpful information, I am really focused on trying to find quality buyers right now. Is there another program to use for that? Thankfully I work for a wholesale brokerage with AA's that find the properties, so my goal is to find a buyer for every one of them. When I get moved to acquisitions I will absolutely utilize Mojo alot of my team uses them as well.

What did you do to grow your wholesale business?

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