Hey guys&gals just join BP... Im newbie wholesaler but been a investor since 2010 with rental property under my belt.. Just sent out my 1st marketing campaign in my area , (yellow postcards to code enforcement/probates/and absentee owners) i spent alil over a 1k.. My question is what is u guys budget monthly on marketing for motivated sellers? better yet whats ur monthly budget u spend on ur business (VAs,Marketing,ect..)
Just little curious to know..
P.s i love this community its been so helpful for me just in the past few days!!
Sorry for the typos folks lol
Originally posted by @Daniel Morgan :
Hey guys&gals just join BP... Im newbie wholesaler but been a investor since 2010 with rental property under my belt.. Just sent out my 1st marketing campaign in my area , (yellow postcards to code enforcement/probates/and absentee owners) i spent alil over a 1k.. My question is what is u guys budget monthly on marketing for motivated sellers? better yet whats ur monthly budget u spend on ur business (VAs,Marketing,ect..) Just little curious to know..
Thanx P.s i love this community its been so helpful for me just in the past few days!!
@Sharon Vornholt just wrote an article on DM (direct mail), and most successful wholesalers and other REIs (sub2, lease option assigments) spend $1000 - $5000 a month in DM, with VAs in the vicinity of 40 to 80 hours.
We really think $1,000/mo. is the desired minimum. But another way to think about it is the minimum number of PROSPECTS that you're reaching. That I feel strongly MUST be at least 1,000. So if you can mail to them for 50 cents, then you can reach 1,000 for $500. If you blow closer to a buck every time you touch them, well you obviously need $1,000 or more per month.
I think the minimum # is more critical than the minimum $ spent.
Now, can you get more leads with $5K than with $1K (in a decent sized market)? Yes. So, the more the better but we all gotta start somewhere!
Driving for dollars is a great way to find deals at a fraction of the cost. DM is great, but I have found my most lucrative deals by just driving my farm areas. I would recommend doing both, but if you are short on cash, then hit the streets and find some deals!
@Ty Burns are you cold calling those Driving for Dollars leads to just mailing ??
@Ty Burns do you actually go up and knock on their doors?
Once you find a piece that pulls, you should spend as much as you can afford. The more you spend, the more you'll make. Test, test, test. Once you figure it out, unleash the hounds.
@Ceasar Blackman - After I find the vacant house, I will take note of the address. I will also place a sticky note on the front door saying I want to buy the house. I will also look up the address and find out if it is an absentee owner and if so, I will send them a mailer as well. I have done 2 wholesale deals by leaving a sticky note on the door.
@Kirsten Walstedt - It depends on the house. I have knocked on the door before, but I usually just leave a sticky note and send them a mailer as well.
I'm doing both driving for dollars and doing direct mail. I just started an absentee owner campaign where I'm split testing white envelopes vs color. I'm also doing this with paper color. It's in a smaller batch to find the one that will work and then I plan to ramp it up. Plus right now I'm budgeting to go deep (multiple mailings to the same person) vs wide (one off to a larger group).
As for driving for dollars, I do it primarily in my farm area which is between my home and office and where I do most of shopping anyway. Whenever I run errands or how to the office, I'll take different side streets on my way to my destination looking for FSBOs and for rents. Plus I like to see what is else is happening in the area (new businesses).
As for your absentee owner mailing, are you targeting out of state vs. in state owners?
@Ty Burns sound like good results so far, just curious how are you sticky being recived when you do make contact? Are they upset you were on their property? Is a neighbor that lives near by getting ahold of the owner? I have heard of people using stickys and having success, never tried it yet.
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