New Wholeselling full time business

[Or Basan]

Hello BP members ,🤗 ( IF THERE IS ANY ENGLISH MISTAKES ,SORRY )

This post it’s a question post , bust hopefully by answering it , it can bring value to the other readers who’s interested in the same topic too .

I’m starting my full time Wholeselling business at the beginning of the year (congratulations🎈).

my goal is for the first year to get 2 deals a month so 24 deals a year.10K profit minimum per deal .

This is how we plan to get it :(assuming that’s we’re doing a good job talking to sellers and having a good negotiation skills)

we going to Send a monthly letter to 7,000 list of people to the following :

1. 30% eq or better , 7 years of ownership or Better,SFR,3-5 Bedroom

2. Owner occupied 30 eq or better ,15 y ownership or longer ,sfr,3-5 bedroom,65 years or older of deed owner

3. Mortgage late

4. Nods

5. Inherited

About 6,000 letters will go to group 1 and 2 and the rest will split between the other groups .

we expecting to get 1.5 deals a month from that marketing strategy (7000 letters ,1.5% callback that’s 105 1.5% that’s 1.5 any change )

So that will bring us to 18 deals a year .

(Btw we paying 65 Cent per letter)

We going to put 850 street signs (still waiting for a final answer from the county to make sure we’re doing it only on a legal locations)

That’s come along with business cards that we going to give away daily , and stickers “we buy houses “ on my car, and also do door knocking for homeowners who’s in pre foreclosure.

Hopefully all of it will bring us another 6 deals .

Also I’m going to hire a GREAT Seo mannager to work on my website so hopefully for 2020 Well be able to extend the business for online marketing too and getting leads organically too.( I was thinking at the beginning of getting into ppc and direct mailing together but than i decided to focus on one things , be great at it , and than invest on other things, also I spoke to few very successful flippers in my market and they all said that DM is their best source of leads .

I would be happy to hear your opinion and tell me if we miss anything or things looks good to you .

btw , michal Quarles is a great great source of info so for the guys who never read his posts on bigger pockets or listen to his podcast, I’m highly recommend, absolutely love him .

* you guys thinks the goal of 24 deals per year it’s realistic for this one year strategy?

[Kath Marie]

I mentioned this on a post a few days ago. I work with a MAJOR wholesaler in Chicago market (I buy most of his properties). He does 54 deals a year. Spends 600k a year in marketing (google, fb, direct mail, and so on). That's an idea of what it might take to do 1 deal a week (of course all areas are different). 

Other observations: 

-A large chunk of his mailers get returned to sender (don't know the % but the addresses from lists are not always accurate). 

-a lot of mailers get sent to properties already owned by investors that just bought them or they're directed at addresses that were just sold to other homeowners. How do I know? I get dozens of them on projects I'm actively working on or on projects I've recently sold (the "lists" are outdated). 

-getting people to call you back and locking up their homes is 1/3 of the battle. Knowing the market, ARVs, reno costs, what it takes to close, how to deal with different situations (trusts, bankruptcies, family members laying claims to home, heirs, wills, probate) or having the right title company (and attorney) to deal with these situations is another 1/3. Then finding people to sell them to is the last 1/3. 

- A lot of deals fall apart in the wholesale arena due to situations stated above. Approximately 1/5 that I'm under contract to buy don't go through for one reason or another (or they get EXTREMELY) delayed. 

You've done some hw which is great but if I'm just starting I would lower my marketing budget and scale down my target. It's a lot of work to wholesale and that's why many are never successful at it. I would rather buy from GOOD wholesalers that put in all the time and money to do what they do instead of trying to do it myself. 

Start with a few and see if it's something you want to continue. Once you've gotten an accurate ROI on marketing then you can scale from there. Otherwise you're throwing money at a wall in hopes that some will stick.