Wholesaling in NJ

21 Replies

Hey All,

I'm planning on starting up a wholesaling campaign at the end of this month in 1/2 zip codes in Southern NJ. My goal is to build a solid marketing machine within 3-4 years time while I currently work a full-time job.

After listening to the BP podcast with @Michael Quarles (ep #81), I decided to call yellowletters.com to speak with him about setting up a direct mail campaign, but I was informed that he's usually not in the office as much anymore - spending most of his mentoring time with students (bummer - I was looking forward to connecting with him!). Anyway, Norma was able to help point me in the right direction in terms of setting up a campaign, which you can see below. This criteria is, in her words, what beginners typically start off with. Hope this helps anyone else out there:

Criteria:

  • Mix of Absentee & Owner Occupied (I'm thinking 60/40?)
  • 1-3 Bed
  • 40-100% Equity
  • At least 4 years of ownership
  • Single Family Home
  • No Corp/No Trust

Mailing Size/Frequency

  • At least 1000 mailings/mo (I'm going to start off with 500-600; I know I can afford this consistently)
  • Mailed at least once a month (i.e. each contact should receive 6 mailings over 6 months)

Mailing Sequence

  • Month 1 - Small Text Postcard
  • Month 2 - Yellow Letter
  • Month 3 - Professional Typed Letter
  • Month 4-6 - Don't remember because I didnt have time to write it down

Other (my own plan)

  • Website - for lead generation (will have the link address printed on the mailers). Also thinking of creating separate sites for separate towns (this is pretty easy to achieve so no big deal)
  • Google Voice/Skype # - alternate number routed to my cell + short/sweet answering service for any calls I missed
  • Research call scripts & practice them

-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*

Question:

For those of you already wholesaling - How does that look? Would you add/subtract anything from the outline above?

For wholesalers in New Jersey or the surrounding areas (Philadelphia, South Jersey, Centeral Jersey, Burlington County, Camden County, etc) - I'd love to get see who's out there currently wholesaling in NJ. Give me a shout!

@greg 

@Greg N. sound like your off to a good start, keep us posted on your results. I too have started DM campaign in NJ. Been so busy haven't had time to even post my results on BP. Hopefully I'll get the time in next few weeks. 

#ContinuedSuccess

Results from first campaign: 4% response rate from yellow letters.

Went to visit one property after qualifying the lead over the phone. Turns out the seller owns the two homes next to the one I went to visit (three in total). He's eager to sell the two on either end, but wants to keep the middle as his elder sister lives there. And the kicker is, these lots are zoned commercial and all three could unlock huge opportunity.

Currently working with local RE folks to try and put a deal together for the three. If that doesn't work out - may have to work out a deal for the two. Pretty exciting so far!

Hi Greg, thanks for this info. As I was born and raised in South Jersey, I'm looking to enter that market as well (I currently live in Baltimore, but because I have a lot a family in Jersey, I get back there at least 2-3 times a month). Would love to hear what success you've seen from this campaign once you get rolling.

Originally posted by @Greg N. :

Hey All,

I'm planning on starting up a wholesaling campaign at the end of this month in 1/2 zip codes in Southern NJ. My goal is to build a solid marketing machine within 3-4 years time while I currently work a full-time job.

After listening to the BP podcast with @Michael Quarles (ep #81), I decided to call yellowletters.com to speak with him about setting up a direct mail campaign, but I was informed that he's usually not in the office as much anymore - spending most of his mentoring time with students (bummer - I was looking forward to connecting with him!). Anyway, Norma was able to help point me in the right direction in terms of setting up a campaign, which you can see below. This criteria is, in her words, what beginners typically start off with. Hope this helps anyone else out there:

Criteria:

  • Mix of Absentee & Owner Occupied (I'm thinking 60/40?)
  • 1-3 Bed
  • 40-100% Equity
  • At least 4 years of ownership
  • Single Family Home
  • No Corp/No Trust

Mailing Size/Frequency

  • At least 1000 mailings/mo (I'm going to start off with 500-600; I know I can afford this consistently)
  • Mailed at least once a month (i.e. each contact should receive 6 mailings over 6 months)

Mailing Sequence

  • Month 1 - Small Text Postcard
  • Month 2 - Yellow Letter
  • Month 3 - Professional Typed Letter
  • Month 4-6 - Don't remember because I didnt have time to write it down

Other (my own plan)

  • Website - for lead generation (will have the link address printed on the mailers). Also thinking of creating separate sites for separate towns (this is pretty easy to achieve so no big deal)
  • Google Voice/Skype # - alternate number routed to my cell + short/sweet answering service for any calls I missed
  • Research call scripts & practice them

-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*

Question:

For those of you already wholesaling - How does that look? Would you add/subtract anything from the outline above?

For wholesalers in New Jersey or the surrounding areas (Philadelphia, South Jersey, Centeral Jersey, Burlington County, Camden County, etc) - I'd love to get see who's out there currently wholesaling in NJ. Give me a shout!

Greg, I too, am on the verge of entering the wholesaling game, but in Northern NJ. 

The marketing campaign you posted looks good. Could you give an estimate as to how much in marketing dollars this ran you? I'm trying to gage about how much money I will need to dish out on a monthly basis for a decent lead flow. I  also noticed you posted a response rate of 4% which is awesome. Is that consistently? Any deals closed so far?

Nice to hear you have been out and looked at houses @Greg N.

Key is, as you probably already know but ill say again, getting motivated sellers.  People that cannot use a realtor to sell their home or they have issues preventing them from selling it conventionally.  And that is your greatest asset in helping those motivated sellers.

I think you know the rest, get ARV and find the right offer price, do all your due dilligence for your buyer... After you do one you'll know the game and do it again. I dropped off wholesaling because of the nonstop work it takes. Moved to buying and holding multis as my alternative. Although I did do one wholesale in Newark lol.

Good job keep hustling.

@Alex Perez  I'm currently doing all the mailing myself (printing, folding, stuffing, etc), with each piece of mail averaging around 70 cents (multiply by how much you will be sending). Wholesaling site from lead propeller (just started with them) costs about $50/mo. Haven't done any deals since I started, but have run into some interesting leads. Currently working on one where the seller has 3 homes to sell side-by-side - the only problem is that their are 4 siblings involved (ugh...). I partnered up with a local wholesaler/flipper to help me with this one, which has been a huge learning experience! Best advice I can give at this point - stop thinking, get mail out the door, and pick up your phone when it rings.

@Erik Pedersen Yeah, i'm trying really hard to get the first deal done. In fact when I scheduled my first appointment with a seller, I had no idea what to actually do from there haha - so i teamed up with a local wholesaler to come with me (yes, I took a chance with them, but it seems to be leading towards a rewarding relationship). Question for you - would you recommend any courses/resources for wholesaling? I feel like i'm taking a very off-the-cuff approach to this and would like to implement a little more structure. Also, where were you getting your lists from?

I'm actually closing on a duplex tomorrow which I'll be house-hacking. I'm super excited as this will be the first addition to my rental portfolio. 

@Greg N.  Well I had bought 'advanced training' classes from Rich Dad poor dad that I did 3 years ago which included course on wholesaling.  It was very very expensive and I dont think you need those classes to do it.  Message me I may have some ideas, I have a few wholesaling books from the course maybe we could connect and I can let you borrow them.  We are fairly close to eachother.

Greg,

If you find anything let me know. I'm probably moving back to Burlington County, NJ next fall.  Keep me your list.  I'm looking to "farm" my local area.  Most likely in the Mt. Holly area, Pemberton, Mount Laurel, etc.

When the time comes, let's meet up.

Jesse

still waiting on orders to be moved there. I should know in 5 months.  I got a little a head of myself by asking around about NJ, but was excited about moving back. Once I get orders, I'll be more active on finding leads.

Hi @Marianne Wentzel -- the book i was referring to was basically a workbook specifically for wholesaling I got from my richdad course.  Give amazon a try and look for the books with good reviews, they usually dont steer you wrong.  Unless.... you want to drive to Bayonne and I will give you my book if you want lol.  

http://www.amazon.com/s/ref=nb_sb_noss_2?url=search-alias%3Daps&field-keywords=wholesaling+real+estate

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you