​MY Story: STEPS taken to setup up for Wholesaling and Learnings

[Raj Kumar]

My Story: Steps I have taken to setup up for Wholesaling.... and learning!

I am getting started with wholesaling. I have known the concept for few years though never tried it out. I have read several books on the subject and also spent hours and hours to learn about it online. I am taking several actions but most of these are still focused on getting setup.

I wanted to share my experiences here and see if others also feel similar to me. I sometimes am getting overwhelmed with the setup process. Its very time consuming and bit $$$ expensive also.

Please note I was never looking for easy success and I am fully committed to this... but this setup is taking a lot of time (several weeks now) and lots of energy. I was expecting to be up and running by now but I am still not done with the setup. I do NOT think this is truly a part time work activity until unless one can commit 3-4 daily to do this. I call it second fulltime job... LoL!

It might also be me as I have spent a lot of time at each step trying to learn, understand, analyze, then again understand, analyze, and fine tune these steps. I have no hesitation to share these here.

1. Setting up Advertising: Post Cards (Approx $1000)

My idea of advertising is to use direct mail campaigns. After 4-6 month, I might try some bandit signs but right now I am not sure if I want to even think about it.

a. A good postcard design costs money. There are several designs online but they are ok. Since this is my main interaction and first with my potential customers, I wanted to get a good design so I paid professional design company to create one for me. It took me 2-3 weeks to fine tune with several iterations and get the final designs. Hopefully this is one time expense. Spent $200.

b. I would then have to create follow up postcards as well which would be approx $50 per card to design with my custom content. Approximate expense $200.

c. I am planning to order 5000 post cards for the first one, as this way the cost per card comes pretty low. Approximate expense $600.

2. Setting up Permits for the Postcards (Approx. $2000+)

I wanted to mail these post cards myself as mailing these via mailing service would be very expensive. So I plan to send these manually (heavy sweat labor). With my own permit, I can have access to bulk rates myself and bring the cost down. I feel this would be good for cost saving in long run. Spent $450

The cost of mail using bulk mailing rates approx. $.32*5000= $1600

I plan to get the list and then print labels using my home laser printer.

Q1. How to get the ListSource list CASS and NCOA certified = I Need some guidance here..?

Q2. I also need guidance on how to print the Intelligent mailing bar code on the labels..?

3. Setting up Listsource Lists (Approx. $600)

I am planning to buy a list from listsource, which are kind of expensive. But most list for high equity (80%-100%) owners in my area are around $500-$600. Ouch! But I dont know any other way to do this.

4. Setting up Website (Approx. $250)

Getting domain: $10-15 approx (NYHomeAdvisors.com)

Getting website hosting company: $120 per year

Website design creation: $100-$150. I need to work on this as I think this would also take some good 2-3 weeks of time. I want website to be a great marketing asset to motivate the sellers. I think this would another small exciting project.

4. Setting up Brochures and Marketing Package (Approx. $400)

I see the most people are also setting up detailed marketing packages to send to sellers that show case their advantages compared to selling retail. I think having a package like this could be very advantageous.

Package creation: $200. I think this package would take another $100-$200 to create.

Printing cost of package would be close to another $200.

5. Setting up the Phone Number (Approx. $100-$250)

Getting easy to remember phone number: Spent $100 to get a very easy number.

Creating the voice mail script: Did myself based on several learning from internet and books.

Setting up the voicemail script: I plan to pay a professional to record this for me with a nice upbeat and bubbly accent.

I am still not sure if I want to use the basic google talk or Virtual Assitant or Live Answering Services. These can easily add additional expense for $150+ per month but might be better as I have a fulltime job (which pays well) and these could help me capture all the leads in a good manner during my working hours.

VA is cool as I could really have another advertising to sell my services.

Live Answering is cool too as someone can help personalize by saying "Mr. ABC is on other line. Could I quickly get your information to pass it to him to call you back?" Please suggest what is good option.

6. Setting up CRM software (for capturing the leads) (Approx. $150)

I think several people in BP are using some kind of CRM software to manage the leads. I intend to do the same. But again this needs some good work to setup. Urgh!!

Most people here seem to be using Podio which is approx. $150 per year.

So the TOTAL EXPENSE for setup itself runs easily around $5000. 

(This assumes I do most of mailing myself)

This does not include any expense for my time or talking to sellers or driving to their locations etc. 

I feel may be 10% qualified calls/leads may result in appointments. and May be 10% appointments will result in good deal. I dont know these % numbers yet as I am starting out.

So who ever said wholesaling was easy was lying. But I feel committed to doing this and enabling my future using this path. I need this to ensure additional long term financial security of my family.

Please help me with your suggestions in this plan.

Thanks for all your critiques of my plan and your positive suggestions in advance.