Quote from @Dorothy Butala:
@Travis Collins I'm gonna back this train up and ask you some questions, because there are way too many unknowns in the info about what you are looking to do to be able to give actionable advice. 1. What is your goal for wholesaling - are you using it as a way to make "quick cash" before jumping into other real estate activities, or is it the strategy you want to stay focused on? 2. Who are you wholesaling to - do you have a current network of investors you are working with? 3. What are you plans for deals you get under contract but don't garner any interest from investors - what exit strategies do you have in place? 4. Seems like you are trying to cast a super wide net and focusing on the number of leads rather than number of deals - curious why you are focusing on the metric of 10k leads? 5. You stated you don't have 80 hours a week to focus on this endeavor (which is totally fine, I prefer to work less than 5 hours a week, so 80 seems excessive), how much time do you have weekly for this endeavor? 6. What type of assets are you trying to get under contract - SF? MF? Mixed use? land? value add? turn key?
Looking forward to hearing your answers and seeing where I can potentially provide some guidance.
Side note: Direct mail is not dead - the way people do it is ineffective. My last "campaign" added a 1.4m asset to my portfolio and provided a lead on another $750k asset in the first round of letters.
@Dorothy Butala Great questions.
1. My goal is to use the revenue from wholesaling to get into fix and flips -- and eventually use that money to buy & hold large Mf properties.
2. I have a couple of cash buyers who flip 10-12 houses per month as well as some REI facebook groups to post deals in. Of course Craigslist as well, but no official buyers list as of yet. I've created a FB page for my business and I plan on joining and interacting in the groups to start getting a list of potential buyers.
3.This is the toughest question, I currently don't have an exit strategy other than an inspection clause that I could use to renegotiate the deal. From what I understand this is SOP for wholesalers so they're not committed to a purchase just by putting the property under contract right?
4. I'm simply looking at the monthly limit of leads the Flipster software gives me. Once I actually start outbounding and get an idea of how many leads I need to work to get to a deal I can set a goal for deals per month but right now I have no idea the quality of the leads or data so I can only set goals on volume at this point.
5. I can dedicate 30-40 hours per week, I think anything past that my full time job would start to suffer.
6. Primarily SF distressed homes, but quite honestly I don't have anything against MF either. I was looking into land -- we have a ton of vacant lots in an area that is undergoing slow but steady gentrification .. people are doing new constructions so there could be some value in that but I'm still researching how land transactions differ from SFH.
I'll look more into direct mail - I'm mainly basing that conclusion off of hearsay.
