Updated business plan

Updated business plan

Wholesaler · Miami, FL · Member since 2010 · 346 posts · 3 votes

Hey,

Ok here is a very basic outline to my business plan to get started in wholesaling. I am thinking of either adding an additional phone 9.99$ month or setting up a google voice for my direct mail and how they can contact me. I would use the separate phone to have a voicemail describing how I can help them instead of all these calls coming to my personal line.

Other than that here we go

I will spend about 150$ a week (600$) month on direct mail to get started. This will be my investment to get used to talking to sellers and maybe even land 1 deal but not counting on it. I will send out yellow letters weekly and I plan on a 100 a week. The cost to mail that is 44.00 and ink and envelopes so I would say 60. I am also going to send out postcards for the rest of the money. I will use click2mail and that can be done easily with a few clicks. The pain will be writing these envelopes for the yellow letters out but I will have to dedicate a couple hours a day to go to that. I plan to outsource that sometime but I will just do it now. The yellow letters will be printed out except the name and address and I will handwrite that so less time on my part thank god! I plan to have my calls come in and I will begin talking to sellers, my trick is to do this every week. I plan to buy a list of 1500 names of absentee owners with 60-100% equity. I also think I am better off starting in the cities around me for the names instead of the whole county because the houses are cheaper for the cash buyers and i am still new to everything.

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Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
15y

John you have outlined part of a marketing plan a business plan encompasses much more.

Some Key areas of a Business Plan
Executive Summary
Company Description
Marketing
Sales Forecast
Operations Plan
Management & Organization
Personal Financial Statements
Capital Requirements
Financial History
Projected Financial Statements

It sounds like your basic market strategy will be direct mail advertising. Do you plan on employing any other strategies to find potential deals?

Have you considered your strategy for building a buyers list as well?

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  • Investor · Charlotte, NC · Member since 2010 · 14 posts · 1 vote
    15y

    Good Luck John W. on your direct mail campaign(s). I'm a newbie and recently set-up a similar schedule. May I ask where you plan on getting your list from? I've searched Melissa Data and haven't been able to pinpoint my search as I would like. I must admit I've only given it a cursory look and plan to dig in deeper tomorrow.

    One thing that I am looking at implementing along with the direct mail marketing is some good old Bandit sign marketing. I figure the cost is low and fixed and that It would be a good investment to buy some signs. My personal labor "cost" for putting the signs up and removing them will increase, but I can't shy away from the potential traffic that can be driven from this source for the cost involved. Must work hard to compete out here is how I am looking at it. Anyway, just an idea you may want to consider to help increase visibility/traffic??

    Good luck again.

  • Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    John you have outlined part of a marketing plan a business plan encompasses much more.

    Some Key areas of a Business Plan
    Executive Summary
    Company Description
    Marketing
    Sales Forecast
    Operations Plan
    Management & Organization
    Personal Financial Statements
    Capital Requirements
    Financial History
    Projected Financial Statements

    It sounds like your basic market strategy will be direct mail advertising. Do you plan on employing any other strategies to find potential deals?

    Have you considered your strategy for building a buyers list as well?

  • Wholesaler · Miami, FL · Member since 2010 · 346 posts · 3 votes
    15y

    My first strategy for finding buyers is at my CTREIA meetings, I will let everyone know I am serious and kind of make it a point to see who has done deals already I know 5% are the real investors and most are tire kickers. I will also mail to an absentee owner's list from 3-6 months of recently bought properties. The last way I will go to the auction and hand out my cards there as I heard that is a great way to find the true buyers that no one else really does. Another option is the one andrew said where I put out a few bandit signs before i have a deal 3/2 rehab 50 cents on dollar call xxxxxxxxx. but I will save that until I need it.

    I plan to put all my focus into perfecting direct mail. I don't want to overwealm myself and try doing bandit signs, REO's, etc. I think If I make it a point to just get what I need to get mailed out each week I can review after a month and then take it from there... what do you think ?

  • Wholesaler · Miami, FL · Member since 2010 · 346 posts · 3 votes
    15y

    Thanks shawn also thought about bandit signs but I really don''t feel like making them and then worrying about getting a fine and all that would rather stick to just direct mail to absentee owners, although I am tempted to look into probate so if i have free time I may try to fit that into my direct mail as well.. My biggest fear is that I won't know how to deal with failure and fall into that poor mindset and say oh it doesn't work and go back to the rat race. I think for me it would be easier to put my efforts into one focus and just work on that. Once I get a couple deals hopefully in 3 months then I will look into other avenues

  • Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    Direct mailers can and do work. There are some variables that can increase or decrease any potential result that you might have.

    The message is going to be important.
    How you write the message can have an impact.
    How the message is packaged will have an impact as well.

    Have you talked with some others that do direct mailings for any insights?

  • Wholesaler · Miami, FL · Member since 2010 · 346 posts · 3 votes
    15y

    Yes I have fooled Around with direct mail the last month only sent out about 120 I have gotten a 15% response rate (some
    Wanted me
    Off the list and were mad but still) I will handwrite enevlopes use the invitation style ones and use regular stamps,

    My message is to the point and keep it personalized. I will ad a Ps to the letter explaining how I can help them by closing quick buying as is and not paying realtor fees.

  • Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    A 15% response rate sounds like a winner. Look forward to hearing about your experiences over time.

    I also look forward to your tips on how to become a wholesaler as you become more and more successful in this adventure.

  • Real Estate Investor · NY · Member since 2008 · 313 posts · 87 votes
    15y

    I have about a 15% response rate to my mailers as well. Infact I now only am buying properties that are a direct result of my mailers. I hooked up with 2 realtors but they have yet to bring me deals like I find on my own.

  • Investor · Charlotte, NC · Member since 2010 · 14 posts · 1 vote
    15y

    I certainly understand focusing on one marketing aspect and perfecting that niche. I agree, a 15% response rate is pretty good. Again, good luck to you.

  • Real Estate Investor · Keller, TX · Member since 2011 · 118 posts · 39 votes
    15y
    Originally posted by sportf190:
    Thanks shawn also thought about bandit signs but I really don''t feel like making them and then worrying about getting a fine and all that would rather stick to just direct mail to absentee owners, although I am tempted to look into probate so if i have free time I may try to fit that into my direct mail as well.. My biggest fear is that I won't know how to deal with failure and fall into that poor mindset and say oh it doesn't work and go back to the rat race. I think for me it would be easier to put my efforts into one focus and just work on that. Once I get a couple deals hopefully in 3 months then I will look into other avenues

    It sounds like you're off to a great start (taking action). If you need some help with motivation and dealing with unwanted results (remember, there is no failure, only results) I highly suggest reading Think and Grow Rich if you haven't already and also Awaken the Giant Within by Anthony Robbins.

    I've really been enjoying Sean Terry's podcast also and I reflected a lot on a recent quote of his "There's no questioning IF this works. It CAN work and it DOES work....the only question is will YOU work" I enjoyed that one.

  • Wholesaler · Miami, FL · Member since 2010 · 346 posts · 3 votes
    15y

    yes, i know it works! Your right I am halfway through Hill's 17 steps to success and think and grow rich is on my next list!..

    I plan to go to the library on my off days for a couple hours just to read these books to keep the motivation.

    Also I just set up my GV number and voicemail, made up a simply voicemail for all the direct mail saying Hey you reached john if your calling regarding your house please leave your name number property address thanks have a good day..

    I am waiting on my printer to be shipped but have a list of 330 names still I am going to begin handwriting these envelopes today while I wait for my printer to come in..

  • Real Estate Investor · Richland, WA · Member since 2010 · 38 posts · 0 votes
    15y

    Sportf190:

    15% response rate is amazing. Do you mind sharing the text of your direct mail piece? It would be interesting to see what's working for you.

    Thanks!

  • Lawrenceville, GA · Member since 2011 · 5 posts · 1 vote
    15y

    I am curious to know what you are saying also. I am just starting out as a wholesaler and trying to do everything on my own. Any pointers or tips you could provide for direct mailers would be great.

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