Real Estate Wholesaling

How to Set Up an Effective Direct Mail System as a Wholesaler

Expertise: Real Estate Wholesaling, Real Estate Marketing, Business Management, Personal Development, Flipping Houses
65 Articles Written
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Are you maximizing your current list? The reason I ask is because I see so many people mail a list once, and they are done. You should mail a list at least seven times. That might mean mailing a list every month or every other month. Also, for the leads that do call in, you should be capturing their phone number into a CRM (Customer Relationship Manager). You should be also tracking expenses to ensure you are making more than your are spending. We are the CEOs of our businesses, and it’s our responsibility to ensure the business grows and that we are making the most profitable decisions.

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Mail to Lists Regularly

To go into more detail as far as marketing, you should buy a list of at least 1,000 names — or 2,000 to put yourself in a better position. You should mail to 1,000 names every other month. If you go to a turnkey mail service, you can actually switch mail pieces each time you mail. I have mailed the exact same postcard in the past and gotten good results. Now, of course, the more mail you mail, the better the results will be. I understand that you don't have a lot of money to start with, but simply do what you can.

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Now, if you are experienced, then it’s time to step your marketing budget up. Playing small will keep you small. As far as buying a list, there are many list brokers out there, as well as turnkey mail services, that you can start a relationship with. If doing this is too much work, try hiring a VA to do your marketing for you.

Related: 8 New Killer Resources for Savvy Low-Budget Wholesalers

Get Organized & Follow Up

When people call in, you should have a system where you can store their number — preferably an online service. I use Podio, which is highly customizable. You can choose any service that you feel comfortable with. Now you need to input the phone numbers of the people who call in with their property information. For the ones who are not motivated or whose price is just a little off, you need to be following up with them at least monthly. I know this task may not be the best use of your time. Try hiring a virtual assistant to do this for you. Also, try collecting email addresses from your sellers to put them into an automated email campaign. I’ve heard some investors say they do a text message blast. Whatever you do, be sure to follow up with them.

Track Data & Create Systems

Another thing we should be doing is tracking. I will admit I am not the best at this — I am working on getting better. I hired a bookkeeper to keep track of expenses and for tax purposes. I also implemented a software that will allow me to track response rate, cost per lead, and conversion rates. These things are important to scale any business. We must know what’s working so we can do more of what makes us money and cut the things that cost us money.

Related: The Harsh Truth About Wholesaling Newbies Need to Know

Also, start implementing systems to make smooth transitions when you want to hire people. For example, I just hired an acquisitions manager to handle all my leads. I had training videos for him to watch, the marketing was automated, and the CRM made it easy to manage leads. Everyone's systems in their business will be different, but it's great to have them when growing a team. It's hard to pass things off if you don't have a procedure. I actually got fired from a job that had no procedure, and I had to figure it out. Let's just say that was not my greatest strength.

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In conclusion, as we grow we will need these things in place in order to go from owner-operators to business owners. We are entrepreneurs, and that means our incomes are limitless, so why stay small if you don’t want to? It’s all a personal choice, and I actually know guys who only want to do a few deals per year. Then you have guys like me who want to max it out. If you are one of the “10x” people, then it’s time to start moving more strategically. Don’t be afraid to hire a coach, join a mastermind group, or get an accountability partner to implement this stuff. Growing is not easy, but it’s worth it.

Wholesalers: What does your marketing strategy look like?

Leave your comments below!

Nasar El-arabi has been involved in real estate for 12 years. During those 12 years, Nasar has wholesaled houses, rehabbed properties, built new properties, created a buy and hold portfolio, and fl...
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    Brian Gibbons Investor from Sherman Oaks, CA
    Replied over 4 years ago
    Nasir nice post! My students always watch Dev Horn’s video of “Rule of Seven” in marketing for flipping and wholesaling It may only cost you $10 for earnest money wholesaling contracts, but will it cost you money in marketing in Wholesaling Flipping If you print apiece, pay the postage, and mail the piece seven times, hopefully you will get enough deal flow to have a profitable business if you’re a transaction engineer and can make money with Wholesaling and other tools such as subject to, lease options, wrap mortgages, and joint ventures with Sellers, then you will make more money for the same marketing. Don’t be a one trick pony !
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied over 4 years ago
    Brian, Great point and I totally Agree.
    Colt Mercer Investor from Carrollton, Texas
    Replied over 4 years ago
    Hello Nasar, I appreciate the feedback. You mentioned “software that will allow me to track response rate, cost per lead, and conversion rates”. Can you elaborate. What software do you use?
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied over 4 years ago
    Colt, Please send me a private pm. And I can get you the information. I am not allowed to promote on here. thanks
    Alex Hively Rental Property Investor from Salt Lake City, UT
    Replied over 4 years ago
    Fantastic Post Nasar. A bunch of helpful tips. Thank you.
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied over 4 years ago
    You’re welcome
    Matt A. Rental Property Investor from Minneapolis, MN
    Replied over 4 years ago
    Great post! What is a typical cost for buying a list of 2,000 names using one of the popular list sources?
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied over 4 years ago
    They vary per company. Im paying 140.00 for 2,000 names. However that is a special rate that I have setup with a company called flipthisrealestatelist.com. If you tell them NASAR sent you he will honor that rate. disclosure I do not get any money for promoting that site.
    Ken Lemal Wholesaler from Woodstock, Georgia
    Replied over 4 years ago
    What kind of list are you mailing? Pre Foreclosures, empty nesters with equity, probate, tax deliquent or??????
    Kris Haskins Investor from hampton, va
    Replied over 4 years ago
    I see you doing your thing brother…. great information keep bringing it for us!
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied over 4 years ago
    Kris, No doubt and thanks for reading
    Courtney Merricks Wholesaler from Fort Lauderdale, Florida
    Replied over 4 years ago
    Nasar, great post sir… Definitely some great information for us wholesalers and Flippers to help grow our businesses. Thank you very much.
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied over 4 years ago
    You’re Welcome & thanks for reading
    Sterling Anderson Investor from Omaha, NE
    Replied over 4 years ago
    Awesome Post Nasar. Love direct mail
    James Danchus from Saint Peters, Missouri
    Replied over 4 years ago
    Great stuff. What would you say is an except-able mailing to call ratio for someone just starting out? How about about calls to deal?
    Anthony Rodriguez from Virginia Beach, Virginia
    Replied over 4 years ago
    Nasar, I am a beginner wholesaler. Thank You for the information keeping doing what you do. Much success to you.
    Stefanie A. from Elkins Park, Pennsylvania
    Replied over 4 years ago
    Nasar, Thanks so much for this valuable information!
    Lamontay Garrett Investor from San Antonio, Texas
    Replied over 4 years ago
    Great Tips! Knowing your weaknesses and hiring a person to handle that task is brilliant.
    Jason Bonfante Real Estate Agent from Buckeye, Arizona
    Replied over 4 years ago
    Great Post! Fortune is in the follow up!
    JORGE CAICEDO
    Replied about 4 years ago
    Great article…I’m starting small…I mailed to a list of 38 names last friday and already got 2 phone calls…Looking for more to come…Cost me less than $20…The list was procured from my county’s public records…I also plan on mailing every 7 weeks..
    Elizabeth Greever from Spring, Texas
    Replied about 4 years ago
    Hi Jorge, What criteria did you use to compile the list? Did you do this yourself or is there a way to generate this list through the county? Thank you!
    Tina Pollard from Dayton, Ohio
    Replied about 4 years ago
    This was also very helpful, thank you again!