Deal Flow: Anybody else having this issue?

Question

To fellow wholesalers nationwide your thoughts and ideas are appreciated here:

2010 -2014 We were closing about 20 - 30 wholesale deals a year.  2015 as well as 2016 things have slowed greatly on deal flow in our wholesale business.

Have any other wholesaler buy / sell operations encountered this ?

Advice on how to tweak / adjust would be very helpful.  Thanks for reading and supplying feedback if you do.

Chuck Taylor · Answer

We are too fresh in the business to say (Texas Market - Dallas & Austin). We did 28 last year just in Austin and are on pace to pass that but it certainly feels like we are putting forth much more effort. Here are some of the things we use to pull in deals:

• Direct Mail - old school letters in a traditional white envelope
• Direct mail - flyers
• Hand cards (used to target specific properties; small batch
• Social media (FB, Twitter, YouTube, Linkedin, Instagram)
• Facebook groups
• And just recently we've implemented SEO (it won't take effect for another 30-60 days)
• Host a monthly networking event

I hope this helps! If you see something that we could add or make better, feedback welcome. Thanks in advance.

Jay Hinrichs · Answer

Account Closed  cost of being a realtor on the west coast are inconsequential vis a vi income.  And there are brokers you can hang your license with that cost next to nothing.

Like at our office were my wife hangs her license and I hang mine.

( don't actually do anything LOL)  but its 12k for the year and that includes E and O we pay 1k a year for Board of realtors and MLS access.  I would be lost without MLS access I can't for the life of me understand how anyone can be in this without it... But that's just me.. I want to be able to SNOOP all the deals out there without having to ask anyone ... time is of essence in these markets.

So that's its we cut 12k check Jan 1 for both of us... pay our 1k each for the year and all commissions are 100%.  since we mainly sell our own properties this saves us hundreds of thousands a year if we had to hire a listing broker... WE will do over 10 million in sales of our own porperties  so even at 2% list that's 200k we save right there. and that goes STRAIGHT to the bottom line.. or to Wifes credit card which ever you prefer.

Jay Hinrichs · Answer

@Mike Hicks  I know not everyone wants to be a real estate sales agent... But I contend that many who try wholesaling and dump the kind of money into it.. that I have heard talked about on BP.

if they put that into marketing them selves as agents and went for listings. they would be doing 10X the amount of business they currently do.

I recall a thread were one person spent 100k or so on direct mail made enough sales to make 50k or so... 100k in marketing as an agent and you actually work it and in a decent market like you have could make you 500k.

and a lifelong carrer.

what many don't understand is as an RE agent and if your on top of it.. once you have about 10 years in .. 95% of your business comes to you in the form of referrals.   YOu get asked to do deals it opens up so much..

So if you think of a wholesaler.. they are always chasing the next deal and there is no referrals or barley any .. and if investors stop buying they are out of business.

Mike Hicks · Answer

the reason why i'm taking my exam next weekend to get my license is because I'm having to give away 95% of my leads when I could just take on those sales myself. Not sure why every wholesaler doesn't do this...

Jay Hinrichs · Answer

Account Closed  get your RE license so that when deals don't work for you   you can list them and sell them in this hot market.. most active realtors I know are killing it right now on the West coast.

Chuck Taylor · Answer

@Michael Reilly We were doing all of digital marketing in house but we just hired a Digital Marketing Manager that handles SEO, newsletters, and social media. Well worth the investment. We are still providing the content for the blogs and doing our You Tube videos but getting rid of the tedious stuff has helped us focus on the high pay off activities (mainly talking to more sellers)

And yes. Hosting a regular meet up has given us a good amount of clout in a short amount of time. Happy Hunting my friend.

Stephen Franco · Answer

2015 and 16 are WAY slow on wholesale deals.  I concur.  Starting to pick up now, mostly on multifamily and investment property side.  Still struggling to fit my 4-flips-a-year

Account Closed · Answer

@Jay Hinrichs Thanks for the insight my friend - We have lost a tone of revenue over the years by referring deals or simply walking.

@Chuck Taylor  Nice,Hiring an online Digital manager for your online presence must free up a ton of your time, something to consider moving forward.    Would rather put glass in my eyes then handle SEO and and blogging / newsletters etc...

Any other suggestions please keep 'em coming =)

Account Closed · Answer

@Jay Hinrichs in regards to get licensing there are some carrying costs with having a RE License, correct?  E & O Ins Monthly  fee's associated with the broker you hang your license with?  Which RE companies offers good competitive fee's to their agent associates?  The referral aspect too from being an agent is great as well, you may have planted a seed here with me.

@Mike Hicks That is our goal to not just to wonder one our next deal will close and we have been wondering more this year then previous years for sure.   Good luck with your RE Exam.

@Stephen Franco Thanks for your input we just seem to be hitting a wall this year with our Wholesaling business.

Account Closed · Answer

@Chuck Taylor  - Our social media is rather poor we need to strengthen that channel.  You use an intern or a VA to manage your bi-weekly Monthly blogs, letters and content marketing?    The monthly networking event is probably huge for you as far as meeting people face-to-face.     Great advice and very much appreciated.

Deal Flow: Anybody else having this issue?

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