$3000 Wholesaling marketing budget?

Question

Hi guys, I’m new to the wholesaling business and wanted to know how to get started with a $3000 marketing Budget. I’ve been reading as many books as possible on the subject over the past several months and I have a couple cash buyers on my list. Now I want to begin focusing on acquisitions I was wondering if anybody had any recommendations for how to allocate $3000 for marketing.

Btw I’m located in Dallas Texas if that helps any thanks in advance.

Jerryll Noorden · Answer

No there is no art to this, no there is no luck to getting leads reliably. Luck only plays a part when your lead generation system sucks.

Ask yourself this question,. Why did you pick DMM? Is it because you did actual research and your data shows that is the best method? (Doubt that!!)... or was it because everyone here on BP tells you to do it.

Probably the latter right?

OK how many people here make 6 figures/month? How many make 7 figures?

Why not ask how many people do DMM and how many are getting leads reliably? Not many! So again.. why in frogs name are you doing DMM? Give me ONE reason that justifies you doing it?

So...You have read a ton of books and NONE of these damn books tell you to find the cost per deal right?

All those people writing books.. they should stop writing... and do some research for Pete's sake before they are writing. How many Gurus out there will tell you to do driving for dollars, cold calling, DMM. Damn idiots!

How many of these people get this?

So listen up. Master monkey is talking.

It is completely irrelevant how much money you have. Checking your bank account and THEN figure out how much you can afford on marketing is ludicrous, obviously... yes THAT is luck.

What they SHOULD have told you in those damn books is that you need to figure out the cost/deal.

How much does DMM cost before you make a deal. How much money do you need to spend before you make a deal.

The reason DMM flat out SUCKS is because more than most other marketing venues, DMM is highly unreliable because it depends where you get your list from, what people you target and it relies mainly on luck.

The more mailers you send out the luckier you will get.

What you should be doing is figure out the cost/deal for PPC, Facebook ads, DMM, Cold Calling etc. etc and then make sure you have the required funds available BEFORE you spend a cent or ask anyone here if that amount is good enough.

Asking random people here on BP if $3K is enough... Dude.. think. What are they going to say??

Yes?

No?

How the frog could they possibly know that answer if they have NO CLUE what your mailer says, who you send them to or anything for that matter.

People come on man. You all should be smarter than that and you all should have more experience than that. You should know better.

Let me again show you exactly what DMM is and how it traps you into bankruptcy especially for beginners.

Orange line is your potential profits,  and the blue line is the potential Cost/deal.

Unless you are sending 10,000 mailers, you are gambling and you know what they say about gambling. The house always wins.  In this case it is the DMM companies that will win.

DMM only gets you a return if you send out A  LOT of mailers, why?? Well because DMM relies on pure friggin LUCK. The more mailers you send the more CHANCES you have they will land in the mail box of an actual motivated seller. And that is ALL there is to DMM.

Now people often will pat themselves on the back thinking they are smart and they came out with some magical strategy how to increase the chances and I laugh at them. Yeah you go figure out how to turn the 0.5% open rate into a 0.7321% open rate. Wake up!

No? All you DMM companies dare saying I am wrong?

OK.. fine.. then WHY do you need to send SO MANY mailers BEFORE you get reliable deals? If I was wrong you would also get reliable deals sending 500 mailers.

And still not convinced? Fine lets talk about data.

What is the open rate for DMM?

Speak louder son, didn't hear you.

What? 0.5 to 3% open rate?

Ahhh ok then.. not very good odds huh.

Dude, stop reading books because  not because some clown wrote a book it means what ever it says is real  or credible or accurate. It is like saying I found it on Google so it must be true.

Well if that were so... Google "The Most Handsome Guy That Buys Houses In Connecticut":

Wait let me do it for you Sheeesh..

OK OK fine fine.. maybe if google says it is true, it actually IS true..

But this is not usually the case damnit. But I think you see my point right?

No friend.

The only way DMM will  make you money is if you spend a crap load on it sending out a ton of mailers.

And here is the problem with that. If you have $10K to waste on DMM you will get FAR more and FAR better leads doing PPC, or facebook ads. So there truly is no reason to do DMM, UNLESS.....

Unless you have a very very specific list of houses you want to reach. For instance you came across a house driving to work and the house is just perfect and you really want THAT specific house. Or you want to reach people that have no internet access (why you'd want to target those kind... I have no clue).. but there you go.

Think on your own. Look do not follow sheep. You DOMINATE them and you cut them to pieces and feast on their chops!

Nick C. · Answer

$3000 might work, but you'll need to get lucky. For a frame of reference the institutional wholesalers are spending 10s of thousands per month on marketing. You could get a deal with $3000, but there's just as good of a chance you won't get a deal.

Corby Goade · Answer

There's an art to it, but most of the independent wholesalers who are successful in my market do really well with cold calling. You'd have to buy some lists and hone your craft, but it's very doable. A good deal every month or two could be all you need.

Account Closed · Answer

When I was buying foreclosures about 10 years ago, I was sending out about 1,000 letters a week. That was $1 a letter. And I was swamped with business. But that was 10 years ago. Then about 4 years ago, because there just wasn't as many foreclosures, I switched to sending out to  various other groups, liens, vacants, etc I was sending out 5,000 at a time and getting NO phone calls. The list matters, the mailing piece matters, the stage of the market matters. You can spend a lot on mailers and get few to no results.

During that time a local mentor took a couple of students door knocking to teach them how to do it, and they got 3 leads in one day.

There is a moratorium on evictions and many people have a temporary pause on paying their mortgage so they aren't as motivated as they will be in a few months when all of that ends. The time to become the "go to" guy for them to call is now. If you build a list of people to stay in touch with you will be plenty busy in a month or two and you are likely to find a few properties in the process by phone calling and door knocking now.

Greg Scott · Answer

I'm in SoCal where I see the big dogs spending tons on Google ppc and mailers. I'm not especially a good target and even I regularly get mailers from one of the top buyers. So my conclusion is mailers would be a waste of a small budget.

https://www.gregbuyshomes.com/

Jerryll Noorden · Answer

Yo Greg. I am actually not promoting organic SEO although it is no secret I am all about seo.

no no I was more promoting "think and evaluate things before you just do DMM just because 90% of BP tells you it is a good strategy".

for someone like the OP I would rather recommend him doing PPC ... after he has made a CREDIBLE website. You need to make money now and seo dies take a while.

yes my posts are long. Again... credibility. I can just say " hey DMM sucks" the end.... But then I would be like most other posters here on biggerpockets that bark hard but no proof. I find that utterly useless... sorry not sorry.

I try to guide people the right way as you do need to be straight to the point and direct to be effective as efficient.

How to do organic SEO?

it is all about ignoring Google and focus on providing value to your traffic.

dud I get 12 leads yesterday? Not sure honestly ... when you get 30 leads/week you stop counting. Besides it's more of an average. Some days I just get 1 or 2. Other days I get a bunch. Go figure

Account Closed · Answer

1. Door knocking2. Phone calling

They always work, they will always work and they are affordable.

Jerryll Noorden · Answer

If you are selling your car, and the potential buyer asks you, Yo man, does it work?

And you say: "sure, every 100 times you turn the key it will start 3 times...."

Would you consider that it works?

Better yet, would YOU buy a car that starts 3 times every 100 times you turn the key?

"It works"... not very concrete right?

The real data you need to determine if it works...

how many doors do you need to knock on before you get a deal... NOT  a lead.. a closed deal! Again, how many doors do you need to knock on before you get a paycheck.

Also how many phone calls do you need to make to get a pay check. Sure.. everything works... but to to what extent does it work.

I won't say more...

I shall leave this up to y'alls judgement.

Greg Scott · Answer

Good discussion John. Good comments on the current state of the market.

Greg Scott · Answer

They probably do. In fact I was cold calling pre-foreclosures last week and on my first call the guy told me he had just sold to some guy who came to the door.

I wonder if the door-knocking competition is way down these days. Having to wear a mask might make it more of a grind than it already is.

https://www.gregbuyshomes.com/

$3000 Wholesaling marketing budget?

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