Direct Mail Wholesaling System
Marketing schedule Sunday’s after lunch (scheduling tasks)
Put leads into database, consistently track and know follow up schedule.
45,000 postcards/month about $1,800 – $2,000 depending on how it’s printed: the color, etc
- need about 25 to 30 leads usually to get a deal. (reverse engineer)
- Track religiously – get anywhere from .5 to 1%, so 10 people may call you
- Act, Salesforce, Zoho
- Zoho – cloud based so anyone can see what deals are in Escrow, what stage of the closing process, you could see what the new leads are. You could open up a lead and you would know the owner, how we found him, the transaction details, the numbers, the property details and their exact situation. The reason I did that a year and a half ago was because I knew that eventually I would be hiring in somebody.
When talking on phone use friendly enthusiasm
- If I know I have a day full of phone calls to make to sellers, I will actually meditate for about half an hour prior. And I don’t know what about it does, but it just gets me in the zone and I start calling them. I think it puts me in a happier mood and I just start getting friendly and really what I like to do is I like to kind of be a chameleon. I match my tone with their tone and I will record all my phone calls so I can listen to them later and also for training purposes for my new assistant. And so being aware that I’m recording the phone call, for some reason makes me more aware to be better while I’m on the phone with them. And so if they’re speaking slowly, I’m speaking slowly. If they’re speaking fast, then they’re just saying,” Gimme the number. What’re you going to pay for my house? What do you want?” Then I go right back out with the exact same speed.
- recording phone calls because there are things called wiretapping. In some states, if you don’t have permission (have a disclaimer)
- Role play: “What do you want to buy my house for?” A: “Why do you want to sell it?”
- General Answer: “ok”
- If i have their address. I looked it up online and I got a quick idea. If I just had to throw a number off because they’re putting pressure on me, then I’m going to throw a really low number out. And if they have a bad reaction, then I would say, “You gave me ten seconds to think so that’s my price. If you want to use more time, I’ll get a better number if you let me research what I think it’s worth.” If they’re coming at you aggressive, you have to be just the same to them. I don’t think they’ll respect you otherwise.
- Call them back ASAP. If answer, set up a meeting or getting an offer. If goes to voicemail, call them next day, or day after. If they’re not very motivated or mediocre then put them in follow up cycle , taper off after 1st week , 1nce or 2wice/month call them.
- Eventually you’ll wanna line up help to do call backs on the follow ups
- One of those calls could be $10,000
- properties $600,000 and below. And we map out those zip codes. goal is to mail them three to four times a year via postcard. We’ll do one region and then we’ll set them up to be hit again in three months and then the next month we’ll do the next region. And so that gives us the steady flow of calls coming in…a rotating marketing campaign.
- Absentee is my favorite. Four-unit down to a townhouse. So I mail condos, townhouses, SFH, duplex, triplex, fourplex, absentee owner, purchased– 11 years and older. I don’t do anything with equity. If they’re upside down, then I’ll refer it someone to do a short-sale.
- In most cases, I’m saving homeowner money by just listing it. Because if you look at 6% on a $600,000 house, that’s a large sum. Wholesale fee can vary anywhere from $50,000 to $2,000. The high volume of properties allows for a larger spread so that is an advantage that we have, but it is a more competitive market. On average, I’d say $10,000 to $40,000.
- You’ve got to know your numbers very well and you’ve got to know the buyers that will buy the absolute most for a deal.
- Genuinely liked by the seller and that you will do what you say you are going to do. Come across as very confident, know what you’re doing, and you’ve got to be able to deliver on any promises that you make. And if you can express that effectively to the homeowner or to the seller you have pretty good chance.
- Look at deal. We’re going to secure it at a certain price and then we’re going to bring it to all the partners. We’re going to introduce you to one of them, who’s going to invest with me on this property. We’re either going to decide yes, we’re going to buy it or no, we don’t. They’re going to have the final say and if they think it’s a good buy.”
- If there’s someone who wants to know everything to the process, then say “This property will be closed on in another company’s name, because they’re the person with the money and they’re the person that rehabs it and I’m the person that finds the properties, acquisition role.
- If rental, have 6 months of mortgage (or your portion of it) and 15k for any major repair (also helps to have credit at big box and set up LLC for a business line of credit)
- Vertically down the side of it, it says, “Notice” in big letters. Have someone create a formula in Excel so when the full name shows up on the title, you know it could be “Smith Family Trusts” with the date or so and so. The formula will actually turn into “Dear Smith Family” or “Dear John Smith” or “Dear John and Mary” and it’ll include every owner’s name.
- “Hello, I’m interested in buying your house at 1234 Main St. in San Diego. I buy several houses each month and I’m looking to buy more in the area.” Kelly Sold 4uHouses
- Do more calls to action. It says: “Find out why the timing is right in 2014 to sell and call now.” And so it kind of teases them that there’s something going. I have been getting more calls from people who are at about a break even and they are accidental landlords and they’re seeing that it’s about that chance where they can get out. I enjoy those leads because it’s people who don’t want the house. They’re sick of the problems. So me to come in and I’ll take it with or without the tenants, with or without repairs, they’re thrilled.
- Yeah, I’m a problem solver. The fourplex I purchased had heroin dealing in it. Took as is.
- The best deals to wholesale are going to be rehabs to cash buyers. Every couple of months we’ll have a title campaign to give us a report of all cash transactions in our target markets. We can then see what companies are buying the most properties and that gives us a good indicator of one who the big dogs are – everything in California is public record, so you can go and look at that deal – see what is what bought for, what is sold for. We can then find the buyers who buy at the thinnest margins. Those are the people that you want to sell your deals to. In most cases, I’m buying a deal to the same price the average rehabber would buy it for. It’s just that I’m selling to the rehabber who would buy at the highest price. So anything that’s a flip will go to them. In San Diego, not too many are going to make sales as a rental, but the few that do – I have wholesale to buy and hold buyers and it’s a more detailed process cause a flip is a six-month decision. Whereas in rental, you’ve got long-term.
- I’m going to get a more profit amount sheet. I’m going to be able to tell them what the market rents. I’m going to be able to tell them what the tenants are paying for, what the lease is stating. So we’re really presenting it to them as an investment opportunity and less of a flip. And it takes a much more detailed, professional approach w/ prepared report, if you’re going to succeed at selling a buy and hold deal.
- We wholesaled a triplex to an individual. We actually got a conventional loan to buy and close in three weeks. And we sold it for more because we knew it as in his target market. He owned other rentals in that area. We found that from a title search. So we called in and said, “Hey, you own two on the street. You want another one?” We know that he is the person who wants that deal more than anyone, but we had to present him with all the details so that he could move forward. And in California, they need to know about the tenants. If they’ve got problem tenants. What the lease estate, who’s paying for what. All of those items are critical. If I was going to buy a deal, I want that. So I know I need to present that to whoever’s going to one of mine.
- Just wholesaled a tear-down. Literally it’s in a tremendous zoning with three town homes on it. So we tied up the deal. I shot it out to some of my regular buyers. They’re all rehabbers. They don’t want it. SO we had to reverse engineer and find a local individual who is developing in the area and he bought it right away. You should have rehab buyers but then find the rest of buyers when you have that type of deal.
- website and opt in. send mailer to all the cash buyers for the last 90 days and saying, “We’re wholesalers. Go to this link. Add yourself to our buyers list.” Easily added more buyers that way.
- see what people are currently buying flip side in my market.” you look for trends. you look for what the market is telling you. And if you see deals are closing at one number and then being listed at another number, the market is telling you where they’re being bought and where they’re being sold. So you just have to offer it within that range.
- the person is who’s going to pay the most for it, move the quickest, is my big buyer. From Title search, R.E meetings and Bigger pockets message, Investors Workshop over a beer, Tell me the numbers. He was going to make ten grand. “Sean, can I have one day to try and sell this deal? So how much will be you happy getting a check for?” “If I get 30 grand, I’m happy.” So I made a couple of phone calls and I had a buyer lined up and the next day I called him, I said, “Well, I got your 30 grand.” So we lined up the buyer, we opened Escrow. “Just out of curiosity, how much are you making?” And I said, “$18,000” And so I made $18,000 for a phone call but I also made him a lot more than he expected to make. So over a round of drinks we generated a $48,000 wholesale fee and a fantastic friendship. We’ve done two or three more deals since then. He’s taught me a ton about this side of the business and then I taught him a lot about wholesaling and how to get the most dollars for your deal. Was one of my favorite deals.
- Bigger Pockets referral buyer and I actually text messaged. He likes to talk via text message. So I sold a deal via text. I don’t think we even spoke.
- Worst deal: The contract had expired on it with the buy, with the seller. I managed to find a buyer. So we went out to the seller and said, “Hey, we can close. We’re ready to go.” And the seller changed their tune and basically said, “We want $10,000 more.” We kind of thought we were done and this has been year, guys. I’m trying to get my first check. I am like foaming at the mouth just to get a piece of paper in my hand that’s telling me I did not waste a year of my life. So we went back to the buyer and just said, “Look. We’re so sorry but the seller is re-negotiating and he wants $10,000 more. That’s our wholesale fee. Is there any chance you can just give a little more just so we can cover our costs? Can you just give us $2500?” And he said, “Okay.” It was a fair deal already so he was okay with it. At closing buyer actually did 2 checks, 1 for each property for $2500.
- Ultimate goal is to own a trailer park, but wants to simplify his life. Wants to train someone so he can take off for 2 weeks, until then wholesaling is a job.
- Have someone else do the back end, filtering, follow up, monitoring all the systems. My job is to deal w/the hot leads.
- Use cash buyers, not finance buyers…referring those deals out to another wholesaler or to a listing agent.
- About a quarter to a third of my business, is working with other wholesalers. Basically, they might have a deal and can’t find a buyer or vice versa. And you’ve got a leverage your strong suit, mine is selling. So if someone else has a deal and they can’t find a buyer. I can take the time to reverse engineer who the best buyer and turn what is probably a not so great deal into almost like, generate an income and it’s like we’re playing like a buyer’s agent or list agent or we’re specifically targeting that exact perfect buyer and we wholesale it to them. They’re not competitors, they’re your allies.
- Q: Seller left an ugly message on voicemail? I know the cost per phone call and it averages to $40 to $60. So I just paid $60 for that person to tell me to f-off and I’m going to call them back.
- What if they call you a name? I just wish they have a great day and move on to the next lead.
- Who’s responsible for inspection? buyer and this is another way to weed out your tire kickers or other wholesalers because I require a $5000 non-refundable deposit to tie-up my deal. You do not get inspection period. I will give you full access to the property so that you can do your due diligence and I want you to be comfortable, but you cannot secure this deal until you’re ready to buy a check for the entire property. The buyer is responsible for all due diligence. Gets you serious buyers. he’ll be able to tell you within half an hour if they can buy it and what their number is and those are the people you sell your deals to.
- They can view it, get a contractor in it. I want them to be 100% comfortable with the purchase. I’m just saying you cannot secure to purchase until you’ve done all these things and you’re willing to fund a non-refundable.
- My favorite word is vacant. We put lock box and then buyers can go look at it. If it’s occupied by a tenant, That’s their sanctuary. As long as they’re paying. If they’re a scumbag, then whatever. “What works for you? When can we get it here? We might schedule one or two buyers to come view it.” You have to adapt as the situation permits, but you’ve got to get them in quickly and you’ve got to give them full access, figure it out.
- I don’t need a lot of money. I want more experiences. I want more time with my friends and my family. Health and travel.
- Succeed and be happy? awareness that you’re doing things properly, or that you’re afraid, of bad habits. General awareness of who you are, what you want and what’s important to you. I mean a lot of might say that we’re going through the steps to do deals, but we’re taking little baby steps because we’re scared and we’re not admitting to ourselves that we’re scared or that we’re doing the wrong thing.
- Good to Great by Jim Collins
Lifeonaire by Steve Cook and Shaun McCloskey