Just a minute. Let me get my soapbox…
It's not unusual as a wholesaler to have competition. Someone mentioned on this post that you need to switch up your marketing strategy. Maybe. Maybe not. Also you said "maybe 10 investors" Is it 10 investors or is it 4 or 5? I get competition all the time. Occasionally I ask my sellers. “How many letters did you receive similar to the one you received from me?” The answer has never been 10. Responses have been 4 or 5 or a lot (whatever that means). I don’t care. Its' healthy and really nothing you can do about it especially if you are looking at a hot deal in a very desirable neighborhood, good schools, high equity, etc. I don’t care if my competition is 1 investor or 20 investors.
Competition is relative. There is just competition and then there is GOOD competition. The question is who can perform? Obviously if sellers are calling you then you are doing something right but what happens after that? IDK how many leads you have talked to but what happens after that first phone call that is not getting you into the deal?
A few posters mentioned the following but it's worth repeating.
1) Follow - up - You might start out with the seller receiving 10 investor letters. How many of them follow up? How many of those 10 actually looked at the property? I don't wait around for the sellers to call me if it's a property I like. I track down their phone number and call them after my direct mail piece is sent stating that I'm just calling to follow up. 2) Speed - a) Are you picking up your phone on the first or second ring or are you sending them to voicemail? When sellers call they are HOT right then! If someone calls and I accidentally miss that call I call right back! b) Not sure who you are marketing to (probates?) but how fresh are your leads? Are you sending your letter 30 days after all the other investors? Of course you are competing with a bunch of investors if you arrive at the party late. c) How quickly can you get to that property and do your analysis \site survey? Can you set a same day appointment? If you hear from a seller at noon can you say I can be there by 3 or my people will be there by 3? d) How big is your buyers list? Do you have buyers that will pay a little more than other buyers? All buyers are not the same. Some are downright cheap. Some are not willing to take risks. Had a buyer just last week ( one of my main guys) that wouldn’t buy a house in Deer Park because he couldn’t see the inside but the profit margins were damm near $100K+. The seller was practically giving away the house away. Took it to investor 2. Snapped it up in 1 day. Also, how quick are your go to buyers? Do they respond quickly to your calls or do they take their time? A buyer with bad response times can cost you a deal (ask me how I know this) ...but I digress.
How much volume are you doing in terms of lead generation?Are you strictly doing direct mail or do you have bandit signs or other forms of lead generation? The more methods you have to generate leads the less competition you will have. Especially if you are dominating your market. It’s simple math. The wholesaler with 50 bandit signs can’t compete with the wholesaler who has 250 bandit signs. How invested are you in your wholesaling business?
A lot of wholesalers don’t know how to handle objections. Do you? What’s your response to “how much are you willing to pay me for my house?” Or…”Are you going to try and low ball me for my house”. When a seller tries to say they want retail for their house that hasn’t been updated in 30 years, do you have a script or patented responses that you follow for some of these questions?
Wholesaling is cyclical. In other words...wholesalers come and go. The same wholesaling bandit signs I saw 2 years ago I don’t see any more but for a hot 6-8 months we were competing for the same corners.
Which brings me to my last point…you have to not quit.You have to be ruthless and relentless in your wholesaling endeavors and you WILL close deals.
