My Wholesaling Journey-- hopefully this will be a LONG thread.

My Wholesaling Journey-- hopefully this will be a LONG thread.

Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes

Hi all,

I am in the process of starting wholesaling. After a previous stint financing a couple real estate projects in '08, I petered out. Recently, I've since decided to focus again, but this time in wholesaling. My intent with this thread is to keep me focused. I've been inspired by many of the success stories on various threads and hope being engaged on this thread will help push me through the trials and tribulations.

I've read a TON of posts and here's where I am:

Knowledge: Reading the BP blog, BP posts & BP Podcasts have been very valuable. I have also read every blog post by Sharon Vornholt ( [REMOVED]) & Seth Williams ( [REMOVED]). I have also read a couple books and recently very stupidly bought a $700 guru course in my local REI club on subject to. It was stupid because the course overpromised and really under delivered. There was no substance whatsoever.

Interestingly though, it was a good thing I bought this course because it was a good reality check: I can spend a ton of money on books/courses that may or may not be worthwhile, OR I can spend that money on marketing and gain real knowledge when I need it. I learn much quicker when a potential check is on the line. I recently heard that "Knowledge without action is entertainment". So, I'll figure it out as I go.

Marketing: I will be sending a monthly DM YL campaign to absentee out of state SFR owners. I plan to hit this group every month as a sustained effort over time. Initially, I will be sending ~1200 per month broken up weekly. My first drop will be end of next week. My goal is to effectively work as many leads as possible and will be testing my CRM, phone dialogue and negotiation. Once I get up the learning curve, I want to scale my marketing up much more. I plan to focus on other criteria as well.

Because there is a huge learning curve in too many aspects, I am outsourcing my YL campaign (thanks Jerry Puckett). Yes, I could do it cheaper myself, but I want to leave this aspect to someone who is an expert. I do not want to wait months and money to find out I had the wrong starting point (wrong list, wrong message, wrong font, wrong stamp, etc). I really admire the people handwriting many YL's weekly-- there's no way I could do that and learn the other aspects of the business well. My goal is to become successful at wholesaling and I am fully aware of the many difficulties. I want to accelerate my learning curve and suspect too many newbie's give up because there's too much to chew on.

Lead collection: I am using Zoho as my CRM. It is free, has a lot of features and gets some pretty good reviews. I use salesforce.com in my normal dayjob and Zoho seemed comparable in terms of features. Salesforce isn't worth the monthly cost for a one man shop, IMO. Zoho handles direct mail campaigns and lead tracking. What I like is that I can automatically attach correspondence via email and can really focus on my leads.

Website/Squeeze page: In the process of building both. I bought Chris Cho's squeeze page and for $67, it seemed like a no brainer-- no need to reinvent the wheel. I will be building a more detailed and elaborate website for buyers/sellers and investors.

Networking/Mentors: I've met a number of people at my local REI clubs. Some more helpful than others. I have one full time wholesaler that is willing to help me through deals. She and I farm different areas, so it seemed like a good fit. I also have a rehabber that wants to "help" me wholesale deals, in return for 1/2 fee. I may use him as I know that he is a local player and the education on tougher deals may be worth it. I also want to rehab, so I am thinking that I can get him to teach me to rehab for a first look at my deals.

Where does that leave me?
1. Need to learn the process a little better
2. Need to get comfortable on the phone talking to seller
3. Need to learn comps and rehab costs better
4. I don't have a buyers list, but am i wrong in thinking that in this market, a good deal will sell itself? I do have a few contacts from my REI club.

That's about it for now. Sorry for the long post, but hoping that there's many more to come.

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Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
13y

Its just life making sure you really want it badly. I look back at those days now and smile, I'd be lying if I didn't also remember those days of being nearly in tears over a situation or a deal just taking me out at the knees.

This is a business for the warriors, you have to want that first check more than you want to breathe. It will happen, keep it up!

See this reply in the discussion

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  • Anson YoungBusiness Member
    Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
    13y

    Awesome! Looking forward to keeping up with this!

  • Rental Property Investor · Manchester, NH · Member since 2013 · 447 posts · 81 votes
    13y

    Good luck Brian Lane! It is a very similar path to mine.

  • Goshen, KY · Member since 2009 · 835 posts · 683 votes
    13y

    Good luck Brian.

    Sharon

  • Wholesaler · Phoenix, AZ · Member since 2013 · 36 posts · 7 votes
    13y

    Cool good luck! Im hanging around for this one. Good info.

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y
    Originally posted by Sean Brennan:
    Good luck Brian Lane! It is a very similar path to mine.

    Wow. Good group. Spent the past hour reading. Thanks Sean!!

  • Dev HornPro Member
    Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
    13y

    Awesome plan Brian Lane! Consider expanding your target audience - I heard from one absentee owner that he had received 3 very similar yellow letters in 1 week. My main issue with YLs is cost - generally over a buck a piece. You could hit the same address 2 months in a row with a postcard for that price, and direct mail is all about multiple touches (don't expect to get a high response rate on your first mailing). I think it was Sharon who said that 80% of her calls came from the 3rd or later mailing to the same person/address. What I add to that is - "and 80% of new RE investors bail out after 2 mailings due to lack of response".

    Some investors (including Michael Quarles) advocate a mix of YLs and postcards; that's a good strategy as well.

    Wish you the BEST, Brian - looking forward to hearing about your success!

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y
    Originally posted by Dev Horn:
    I think it was Sharon who said that 80% of her calls came from the 3rd or later mailing to the same person/address. What I add to that is - "and 80% of new RE investors bail out after 2 mailings due to lack of response

    @dev, I am banking my business largely on these two things. Once I get my phone skills to a decent point and can effectively work deals, I will widen my criteria and farm area. Until then, I need to cut my teeth on some leads.

  • Seth WilliamsPro Member
    Specialist · Grand Rapids, MI · Member since 2012 · 582 posts · 353 votes
    13y

    This is awesome Brian Lane - thanks for sharing with us. I look forward to seeing how this all pans out.

    Let me know if you need any help as you piece things together, this'll be exciting!

  • House Flipper · East Stroudsburg, PA · Member since 2013 · 1k+ posts · 205 votes
    13y

    A well thought out plan. Wish you all the success in the world.
    Hudson County is an excellent market. Please keep us all informed with your journey.

  • Residential Real Estate Agent · Santa Barbara, CA · Member since 2012 · 233 posts · 45 votes
    13y

    Hey Brian, Great Start and awesome thread! I will be following :)

  • Ocala, FL · Member since 2013 · 1 post · 0 votes
    13y

    Hey Brain,

    I recently joined BP I've been reading a couple threads trying to consume as much as possible. I'm really interested to see how your journey goes, and I wish you the best of luck. Your success will definitely motivate others.

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    So, I spent some time today working on a few items ahead of my mailing late next week:

    1. Company name: I want to stay away from the typical "We buy houses" or "We buy as is for cash quick" sort of company names. I am sure they work well, but my limited # of contacts at local REI clubs all have some sort of variation of these names. So, I'm looking to stand out.

    Instead of focusing on what I do, I want to focus on what I can do for my customers.

    So, I recently registered my LLC as "Allay Properties LLC". "Allay" means: 1. Diminish or put at rest (fear, suspicion, or worry).
    2. Relieve or alleviate (pain or hunger).
    Synonyms: soothe - appease - mitigate - assuage - ease - mollify

    So, my idea is to focus more so on what I can do for customers, ie make them feel more at ease and alleviate their issues with properties. I come from a sales/marketing/finance background and once I focused on partnering up with customers and finding a solution for their issues rather than blatant in your face selling, my sales increased dramatically. I'm hoping the same will work for wholesaling. Who knows, but time will tell.

    2. Script: Ahead of my initial direct mail drop next week, I ran through my script several times. I also tailored my CRM with new fields to capture all the pertinent questions from the script.

    3. Phone system: I signed up for google voice a week or so ago, as recommended by a few here. I anticipate handling as many live calls as possible in order to get up the learning curve quickly. Since I work a fulltime job, that may not always be possible. So, I am currently working on a voicemail message and have taken cues from a few here. I wasn't happy with how I sounded after I wrote my own VM script. Sounded kinda fake. Will tinker with it and redo.

    4. Squeeze page: As mentioned prior, I bought Chris Cho's squeeze page. After some initial user error, I finally got it loaded. The template looks great and I realize I know nothing about designing webpages. I put up some quick copy and I definitely need to refine it, as well as fix the layout.

    You can take a quick look here:
    [REMOVED]

    By the way, does anyone know how I can make the address just "mysite" instead of "mysite/home"? I can't figure out how to get rid of the "/home".

    I also spent some time with my CRM (Zoho), as the form on my squeeze page can directly populate my leads. Still trying to get it to work though.

    5. Spoke to one of my contacts from my REI Club: I was complaining about the sporadic REI Club meetings and she directed me to www.meetup.com. Apparently there are a ton of specific RE groups on their that meet regularly in my area. Much more frequently than the typical once a month REI Clubs. Between REI Clubs and "Meetups", there is at least 1-2 get togethers a week. I still don't think I need to spend a ton of time building a huge buyers list as I can probably find a lot at these meetings.

    Unfortunately, the largest "Rehabber & Wholesaler" meetup was last night and I missed it. Next time....

    That's about it. Getting excited for the mailing and trying to get much more done in the next week or so. Want to make sure my squeeze page looks great in the interim.

  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    13y
    Originally posted by Brian Lane:
    By the way, does anyone know how I can make the address just "xxx" instead of "xxx/home"? I can't figure out how to get rid of the "/home".

    You'll need to change your settings under "general settings" from your wordpress admin panel .

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y

    Brian, thanks for chronicling your journey for us.

  • Real Estate Agent · Orlando, FL · Member since 2013 · 270 posts · 40 votes
    13y

    Brian, I look forward to following your experiences. Im nearly in the same boat trying to start out and i like the squeeze

  • Wholesaler · Phoenix, AZ · Member since 2013 · 36 posts · 7 votes
    13y

    GREAT DETAILS! Keep um coming!

  • Houston, TX · Member since 2013 · 34 posts · 4 votes
    13y

    Brian Great job taking action and keeping yourself accountable. I'm also getting started on wholesaling and will be sending my 2nd direct mailing next week.

  • Wholesaler · Phoenix, AZ · Member since 2013 · 36 posts · 7 votes
    13y

    Hi Brian and community Iam a newbie just a few lingo questions on RE. I know DE is direct mail what is YL, SFR owners, & CRM? Thanks!

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y
    Originally posted by Jerry Puckett:
    Originally posted by Brian Lane:
    By the way, does anyone know how I can make the address just "xxx" instead of "xxx.com/home"? I can't figure out how to get rid of the "/home".

    You'll need to change your settings under "general settings" from your wordpress admin panel .

    I went there and it's listed as "xxx". This is stumping me.

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y
    Originally posted by Carlos Ayuso:
    Hi Brian and community I am a newbie just a few lingo questions on RE. I know DE is direct mail what is YL, SFR owners, & CRM? Thanks!

    YL= Yellow letters. There are two different direct mail types that RE investors here use- Yellow Letters and postcards. Yellow letters are more expensive (twice the cost), though have a much better (2x postcards?) response rate. They tend to be less informational and have less qualified/motivated leads than Postcards though. There are numerous discussions on yellow letters vs. postcards. I've decided to go with YL's for now.

    SFR=Single Family Residence.

    CRM=Client relationship management. Basically, it is a system to track your leads. A lot of people use excel and that is probably fine to start out. I'm assuming that I will get a large number of leads based on my YL campaign budget for the year and need a way to track leads and correspondence efficiently. CRM's can also track DM campaigns and stages for your leads. I am using Zoho because it is free and has a lot of features in the free version. I use salesforce.com at my 9-5 and it is instrumental in efficiently tracking leads.

    While a CRM is a nice to have, at the end of the day, marketing and generating leads are most important. Without proper sustained marketing, there will be no leads to work. All my business infrastructure (website, business cards, squeeze page, llc, etc) is secondary to getting potential deals in the door. When I started learning about wholesaling, I found myself trying to learn a lot about other areas. I could have foreseen myself getting stuck in a cycle of continually trying to learn more and never doing anything with it.

    The most important part of my business isn't a website or business cards or a crm-- it is getting out there and doing. Worst case scenario, I mess up a potential lead and don't close it. At least I'll have more coming in the door and will have more opportunities to close.

  • Real Estate Broker · Cypress, TX · Member since 2013 · 822 posts · 468 votes
    13y

    Hey Brian. I'm a former admin, so proofreading is kind of in my blood! I noticed a couple of typos you may want to fix:

    Tax Liens on propert (add the "y" to property)

    We will make you an all cash offer withing 48 hours without commissions or fees. (delete "g" from within)

    Great website. Hope that helps. How come your phone number isn't showing, btw? Good luck!

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y
    Originally posted by Sharon Hiebing:
    Hey Brian. I'm a former admin, so proofreading is kind of in my blood! I noticed a couple of typos you may want to fix:

    Tax Liens on propert (add the "y" to property)

    We will make you an all cash offer withing 48 hours without commissions or fees. (delete "g" from within)

    Great website. Hope that helps. How come your phone number isn't showing, btw? Good luck!

    Thanks for the feedback. I just threw some copy quickly up there. It isn't live yet and is a work in progress.

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    Spent a few hours at Home Depot yesterday trying to figure out material costs. This is going to be a big task and I'm feeling a little overwhelmed. I bought @jscott's estimating rehab cost book and it seems very methodical. I need to apply it to my area. While I know that I'll need to learn rehab costs accurately, I will probably need to lean on a mentor or paid "mentor" for my first few/several deals. Especially considering that my 1st mailing goes out next week and I am very much focused on how to field calls right now.

    Also for ARV, I know that many people without MLS access use Zillow (not Zestimate). Still trying to figure out how to comp properties accurately. I picked a few houses from my listsource mailing list and tried comping them for practice against Zillow. Generally speaking, I found it hard to comp as prices seemed to fluctuate largely for seemingly very similar homes that have sold in the last 6 months, are within 1/2 mile and have similar size/lot. Will keep trying, but was a little dismayed as I figured ARV was pretty straightforward as there would be a lot of data points.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y

    Brian Lane - this next link has much info on finding comps, and there is even a way to use MLS without being an agent that is given in a later post in that thread:

    http://www.biggerpockets.com/forums/48/topics/77999-finding-comps---faq

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    Thanks Steve Babiak.

    So last night, I attended a local real estate meetup. This was certainly not a typical REI Club meeting. It was much smaller (50-60ish people), there was absolutely nothing being pushed on me to buy and it was very informative. The focus was NOT a lecture but rather much more focused on networking, as opposed to the many REI clubs around here. It was a panel of 6 or so investors who live and breathe REI. How was it? Fantastic.

    The topic was how to locate deals and each contributor gave their opinion. Long story short: everything works to varying degrees, but not surprisingly you have to get started and not give up. There were a variety of new to very seasoned investors in the audience and many of the newer members were involved with deals with the more seasoned investors.

    So, how did I do? I got a number of buyers on my buyers list. I also spoke to a few buyers that are willing to hold my hand through deals after I prequalify them. They will help me with rehab costs, which is very much out of my comfort zone. I think I can learn rehab costs over time, but as a wholesaler, one of the things that seems difficult to gauge is that every rehabber has a different level of finish. Compound that with my limited knowledge of rehab costs and I will likely come across as a wholesaler trying to pull the wool over a rehabbers eyes. So, with the help of a couple rehabbers, I can partner up with them without risking reputation.

    Also, I have been studying ARV/comps, but one of the rehabbers last night suggested that I partner up with a realtor. I can offer them potential short sale leads in return for running comps for me. Can anyone recommend other advice as to what else I can offer a realtor in return for comps?

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