Marketing for the new Wholesaler

[Jim Shoemaker]

Hello Everyone.

I'm new to the site, so if this is in the wrong place, please forgive the fact that I'm a newbie and just point me in the right direction as to where it should go.

I am in the process of trying to start my investing/wholesaling business and my first big challenge seems to be generating leads.  I have sent out a mail campaign (1000 pieces) a few months ago to some out-of-state absentee owners, but the response that I got back was 12 calls from owners simply asking to be removed from my list, and 0 leads.

I have since then tried some bandit sign marketing.  From that I've gotten a couple of calls, but one was a short-sale lead that I then passed on to another investor, and the other looks to be in an area where nobody seems to be looking for investment homes (Globe, AZ).

So, I'm not the kind of person who's going to try 1 or 2 things and throw my hands up saying "it doesn't work". I understand it's a numbers game and it takes some time and patience to get moving.

One of the other challenges that I've been facing lately has been time to spend on my business.  My 9-5 job has been more of a 7-7 job lately, and I have a 5 month old daughter which is making my life wonderfully interesting.  We also just recently sold our home and moved closer to family to help with the new baby, so the last few months since April have been a blur.

So because of that, I have recently decided to leave my 9-5 job and pursue my business full time.  Given that decision, come 8/11 I am going to have a lot of extra time on my hands if I can't start generating leads.  I have some tentative plans to send out some new direct-mail campaigns, and while I'm not thrilled about them, I will probably continue trying the bandit signs for now.

My short term need/goal is to get the business at least functioning in the next 3 months, that will keep me from having to retreat to my 9-5 career.  I do have a marketing budget to work with, which is around $1500/month for now.

So what I am looking for is any advice or information you guys can point me to in order to maximize the budget that I have so just simply get things moving.  I know it's a numbers game, but I want to make sure that I'm not throwing my money at something that is known to be something that doesn't work (if that makes any sense at all).

I look forward to hearing from you guys and getting to know all of you as I move forward.

Jim in Queen Creek.

[Najeriq Mentor]

Jim, Welcome! I too am new, however I was a student of Real Estate before I actually proceeded with my real estate business. So far my experience consists of JV oppurtunities with fellow Wholesalers in my area. But I want to share with you what works in my area and marketing techniques that have brought us a good amount of leads. It's good that you have funds specifically for marketing, but make sure you are making the most of your free tools as well. Websites like Craigslist and Backpage generate a lot of leads for us. Being as though the majority are tainted with unqualified Wannabe cash buyers I send them directly to my business email. As far as your direct mailing campaign goes I find it odd that you didn't receive any leads. This might help. A local wholesaler I partner with and I, are starting a direct mailing campaign in which we are targeting a specific Cash buyer. Absentee owners, who have owned a property for at least 10 years+, purchasing homes built after 1950 that have purchased in a specific area in the last 3-6 months. If you target cash buyers in the area you are finding deals in, someone is going to raise their hand and say "Yes, I'm interested in buying a home near where I'm already buying homes at". I hope this was helpful Jim

[Paul Timmins]

@Jim Shoemaker  @Najeriq Mentor 

Consider calling the MLS expireds daily will produce potential wholesale deals or new listings you can refer to a broker.

A buddy walks a targeted area goes door to door speaking with people on behalf of a local politician. At the end he says he has people looking to buy in the area. He will pay a referral if they give them info on a property that they buy.

Paul

[Jim Shoemaker]

Originally posted by @Najeriq Mentor:

As far as your direct mailing campaign goes I find it odd that you didn't receive any leads. This might help. A local wholesaler I partner with and I, are starting a direct mailing campaign in which we are targeting a specific Cash buyer. Absentee owners, who have owned a property for at least 10 years+, purchasing homes built after 1950 that have purchased in a specific area in the last 3-6 months. If you target cash buyers in the area you are finding deals in, someone is going to raise their hand and say "Yes, I'm interested in buying a home near where I'm already buying homes at". I hope this was helpful Jim

 Najeriq,

I have looked into marketing to the buyers themselves, but I always seem to find conflicting information on whether that's a better strategy when you are first starting out.  I do have it on my list of marketing tactics to try though, so I'm hoping it works well.

Concerning my first mail campaign, I have run the details of what I sent out and to whom but a few other investors, and they all have the same response.  I honestly believe that my results were a mixture of bad luck and a saturated mail list that everyone's trying to mail.  I'm not too concerned and I plan to mix up some of the lists I'm going to mail to and find what's working for my area.

Thanks.

[Jim Shoemaker]

Originally posted by @Paul Timmins:

Consider calling the MLS expireds daily will produce potential wholesale deals or new listings you can refer to a broker.

 I actually had my realtor that I work with for my personal home recently set me up an automated search for expired listings.  I had heard from a few investors that these can be a good source for leads as long as you're smart about how to approach them.  Have you used this in the past?  Do you typically mail them or contact them more directly (phone/door-knocking)?

[Paul Timmins]

@Jim Shoemaker 

Phone first thing in the am letting them know their property is no longer being marketed. You pick apart the old listing. You introduce the cash close quickly investor. Bottom line is it reached a wholesale level or a new listing.

Paul

[Michael Quarles]

Expireds can be a great resource when cold calling...

Here is a script we used..

Expired Script

Hi, I’m looking for _____ … Hi ______ … my name is _______ with I Buy Houses.

I’m sure you’ve figured out that your house came up on our computer as no longer listed for sale using a real estate agent…

1. I was wondering… did you take it off of the market…. because the real estate agent couldn’t sell it? (You Did) Terrific! / Really!

1. When would you like this house Sold? (Now)That’s exciting!

1. Do you have your next home picked out already? (You do) Ouch!

1. What do you think stopped your house from selling? (The agent) Really!

1. Now you had it offered at _________ and it didn’t sell, right? (No) Really!

1. And your planning on lowering the price this time to get the house sold, aren’t you?(You are) terrific!

1. I buy houses just like your all of the time, and I have found that if the seller is willing… we can come up with a solution that works best for both of us, is that okay with you?(Yes) outstanding
2. What time today would be better for you for me to come out and buy your house ___________ or ______________? (___) Terrific

1. Before I come out… there are just a few more questions… I need to ask about your house, is that okay? (It is) outstanding

1. Is the home ? Vacant or ? Occupied? Occupant Name?

1. _____ Bedrooms______ Baths

1. How many Square Feet? ________________

1. Size of the Garage? ____________________

1. How did you happen to own the home?

1. What Kind of repairs does it need?

• ? Carpet?
• Paint ?
• Roof ?
• Cabinets ?
• Electrical ?
• Plumbing ?
• Plaster ?
• Sheet Rock ?
• Cooler? Heater ? Air Conditioner?
• Windows ?
• Landscaping ?
• Clean-up ?
• ______

1. What do you think the repair cost will be?____________

1. What are you asking for the house? __________________

1. Is that ? Fixed–Up or? ‘As Is’

1. How did you come up with that Price?

1. How soon would you like to be sold? ____Days_________Date

1. Is there a Mortgage on the house?? Yes ?No

1. What is/are the balance?1st ________ 2nd ________3rd________

1. Are you in Foreclosure?? Yes ? No? Notice of Default or? Trustee Sale...Sale Date _______ Arrearage Amount __________

One last thing…. When I come out… it is important…that all of the decision makers be there…. so I can come to an agreement to buy your house… Will all of the decision makers be there for the appointment? (if all of them are not here don’t go)

Well, ____________ I look forward in meeting you at __________…

[Michael King]

@Michael Quarles

Hi Michael,

    I like your script ^. I am a little confused as to what the little bits in parenthesis are though? At first I thought they were the owner's response, is that what they are?

    Thanks,

                  Mike

[Thomas I.]

@Michael Quarles 

Where do you get the expireds phone number? I do have a service from my brokerage I work with that sends a few of the higher priced FSBO's and Expired listings that has a number attached, but the daily expireds on the MLS don't have a phone number. Is there a trick to finding these?

[Robert Rascon]

I have access to the MLS and there are no phone numbers on there at all! How do you get them?

[Bill S.]

@Robert Rascon and @Thomas I. you can find the owner names from the public record and then do online searches (for free that have limited information) and if you are lucky you can get some phone numbers there. There are also skip tracing services that you can use to find people. Just to be clear you can not use the best ones to gain information to "provide services" like list the property but it's in the gray area if you actually make an offer to buy the property. 

You can also drive out to the property and knock on the door. It's limit only by your imagination and time. Lots of people have online profiles that allow you to email them as well.

[Frank Kapelar]

@michaelquarles and all others

I'm new in the Real Estate Investing business and I having a difficult time getting appointments with the owners. 

When you get to the home are you actually buying the home or are you getting them to sign an agreement  that you will buy the home if you can get funding?  Funding can also include someone doing a lease/option with the seller and you get a release fee.

I thank you in advance for your help.

Frank

[Michael Quarles]

@Frank Kapelar

First I never go to the home to meet anyone. Everything is done over the telephone, fedex and email.

However our intent is to get a contract signed and then resell the property as a wholetail deal although in your state there is an abundance of cash flow opportunities. 

I bought a deal last week in NC where the seller paid money to sell, gave a seller carry back zero interest wrap and is feeding the deal monthly to keep the wrap and underlying loan consistent. 

My cost are 1500 in closing fees and minor repairs along and 153 monthly payment on a 550 monthly gain. 

the goal on this deal is a L/O which should produce about 50k in earnings.

Its podcast 58 at www.buysellfixflip.com

[Frank Kapelar]

@MichaelQuarles

Thanks for the clarification.  My understanding is all the details are worked out over the phone using the script.  Therefore there is no need to have a meeting is to get the agreement to buy signed.  You use email or fax to get the agreement to the seller and FedEx to get the signed agreement to you.

Is your agreement to buy contingent upon you getting funding?  

In regards to the cash flow opportunity you mentioned:  Did I read that correctly?  The seller paid you to buy, pays some each month and the seller is also holding a 153 month mortgage?  

Thanks for the info about the podcast.  I'll give it a listen soon to learn from it. I'm certain I'll have more questions after listening.

Frank