How I made 15k from my pipeline!

Every month we spend 20k dollars on direct mail for 60k pieces of mail. For each $20k we spend, we hope to make $60k in returns. We break that further into weekly goals of 1 deal at a $15k assignment fee.

Like I said in my previous post, the process of talking with the seller, negotiating terms, assigning the contract, and finally closing often takes more than a few weeks. So starting out, it is all about building a pipeline and staying in contact with the seller so that when they are ready, you are at the forefront of their mind. We use a management system called podio to streamline this process.

In the first month, I had one assignment that started and closed all with in two weeks. In my second month, I had a few assignments that didn't close until later dates, and the third month, finally all of the leads that I had been following up with were suddenly ready. I personally get 15% commission from each assignment. So for me to make $15k in a single month, I had to make $100k in assignments for our company. Here is a more thorough process of the role I played.

Step 1.

Answer incoming leads:

We send out 60k mailers a month, but if we did that all at once it would be overwhelming for a single person to handle. So, we ration the 60k pieces of mail over 4 weeks, sending out 15k at a time. Most calls happen within the first two days of sending the mail and trickle out over the next few days after that. I get anywhere from 50 to 70 calls and texts each week, which is just under ½% return. From my experience, half or more of those leads are calling to tell you to stop sending them mail.

From the leads remaining I have a lead sheet to fill in about the condition of the home, how soon the seller would like to close, for what price, and why the owner is selling.

Step 2.

Comp the property:

From here I send the information over to Dustin for him to to find comparable properties that have been remodeled and sold in that neighborhood. This helps him calculate what the “After Repair Value” will be. From the ARV he can minus the projected repair costs, the profit for the flipper, sales costs, and a $15k assignment fee to get us to the number we can offer to purchase the house.

Step 3.

Give Offer:

Typically the offer happens in the same day or latest within 24 hours. Most times we don't see the house in person before giving our offer. The exception is if the house is in really bad shape and we need to get pictures in order to give a more accurate offer. Most of the time, the seller rejects our offer and says it's way too low. No worries, we only want to buy from people who want to sell to us. If they can get a better and higher offer, then we encourage them to do so. Remember, our goal is one per week.

Step 4.

Set Appointment::

If the offer is in the right ballpark then we book an appointment to see the house and get them a written contract. This appointment is to get photos for when we go to assign the contract to one of our investors. It's also for the seller and I to get familiar, as we are going to be talking back and forth for a few weeks.

Step 5.

Follow up:

Follow up. Follow up. Follow up. Even the sellers who are happy with our offers aren't always ready to sell in that moment. Some people need time to get their renters out, find a new place to live, or have some reason for not closing in that moment. Of course, there will be those sellers that prolong the process in search for the best offer - as is their right. In order to stay relevant, I call every few days after the offer is made. I don't worry about over calling, sellers will either not pick up or let you know when to call them next if they don't want to be called so frequently.

&more.

There is a lot more that goes on than how I have described it, but my role is only with the seller. I haven't had to analyze properties or assign it to the investor. So please note that the 5 steps above are what I do for Offer Arizona, but is not the entirety of the wholesaling process.

Properties and assignment fees, all located in West Phoenix.

Triplex: $59k assignment fee

Condo : $5k assignment fee

House: 15k assignment fee

House: 10k assignment fee

House: 15k assignment fee

Total: 99k