How do I get 1 deal oer month?

Question

What do I need to do to get one deal per month under contract? I live in utah. What would my best stratigie be?

Pat G. · Answer

Travis:

Great Question. This may help you:

1. Choose what type of opportunities you are going to do, i.e. Residential, Commercial, wholesale, flips, foreclosures, bankruptcy, Subject To and Lease Option, Section 8 Rentals, Standard rentals, etc. Get Focused!

2. Know your exit strategy - hold for long term cash flow and appreciation, etc.

3. Choose an area that you believe would have a lot of your #1 choice and become the expert in that area for the chosen #1.

4. Study and research everything you can about the opportunity you have chosen, talk to people whom have done or are doing, BP is a great place for that.

My #2 maybe in #1 as well.

Hope that helps

Pat

Blair Poelman · Answer

you call me and we bust ass together and get it done.

Karl Krentzel · Answer

Awesome Question!

In my book, you win the "Question of the Year" Post on Biggerpockets!

Here's why... You are looking for a DUPLICATABLE, Predictable, systematic way to approach building a wholesale business.

The good news is, there is an answer!  I am reminded of a guy in Asheville NC. who wholesaled and "flipped some" his first year in Real Estate as an unlicensed guy.

His Name is Rodrigo, and he is only 24 years old with NO experience..

He flipped 17 homes and grossed over 135k by doing exactly what you are trying to do!

The Business is Simple.. But Not Easy!

In nearly 19 years of this business as a Realtor®, Broker, Wholesaler, Rehabber, and Investor at large, I can assure you one thing...

It's Possible... but not easy!

I am going to share with you a simple 5 Part Formula of everything you need to do to get your "one deal per month" just like I told Rodrigo to do.  If you follow these five steps, you will be guaranteed to make your deals happen!

Step 1.  Lead Generation... By Any Means Necessary!

You must learn how to generate leads.  Understand that there is a difference between a prospect, and a lead.  A "Prospect" is someone who "says" they want to sell.  They might even have a sign in the yard!

A LEAD however, is someone who will sign a contract in the next 7 days.  They HAVE to sell, and are going to make a decision NOW!

Find these leads free via the usual suspects... FSBO, For Rent By Owner, Expired Listings, MLS Listings, Craigslist ads, and more.  They are all free lead resources for you!  (If you want a script book filled with the scripts you need for that, then thats cool, just let me know.)

Step 2. Lead Followup... Be Relentless!

If they have to sell, and are willing to sign a contract in seven days, then you must be relentless in your followup!

Know that you aren't the only game in town! There is nothing that a motivated seller loves more than a motivated, ready to buy buyer!

Call them to get the appointment to see the home, call them after you leave, call them all the time until you get them under contract... then keep calling!

Step 3.  Pre-Qualification... Don't Waste Time!

Now that you have the appointment, the job isn't over! By No Means!

Now you need to determine if they are a viable candidate for whatever exit strategy you may want to use.  This would include running comparables, checking repairs in similar properties, talking to your existing network to find what they would pay for something that the subject property in that area...This is the time to do research to determine if you really want to go or not.

If it turns out that you do not want to go, or they aren't quite motivated enough yet; you can always gracefully cancel the appointment and keep the contact and followup over time.

If it turns out that it is a great appointment, then you are already prepared for the appointment... best of all, if you do it correctly, you will know their objections in advance!

Step 4.  Present and Sell!

Now is your time to shine!  It's "Showtime!" as one of my mentors used to say!  You have approximately 20 minutes to make the case as to why they should sell their home at a discount to you!

It's not easy, but there are methods to explain it.  I prefer using "The Pawnshop Presentation" (PM me if you have questions about that)

It's sure that they may not always agree with your price!  Therefore, learn how to obtain, present, and explain comparables to help them understand that the retail price of their home is probably X.  They want Y, and you are going to offer Z.

Step 5. Answer Questions and Close!

This is the most exciting part!! This is where they obviously will have questions (objections) and you (being smart!!!) will have already pre-memorized all the Ten Most Common Objections Handled! Scripts that I have!

That will give you the confidence to ask for them to sign the contract!

Remember!

3 Part Formula For Success!

In closing, let me share with you a three part formula for success in real estate that has worked for me.  I hope it brings you the same success as it did me!

• Each week, Work to bring in a salable contract first!
• Work on Selling your Own Inventory First!
• Keep Your Promises, to Yourself... and Others!

If  you do those three things, each week... you will undoubtedly find success!

Have a Powerful Sales Day!

Cristo Heatherdale · Answer

Like Pat said, know your area. To make things easier and organized get a map of your city and get it laminated. Start zoning it out. City-data.com is a decent demographics tool you can use to filter out neighborhoods by median income levels, percentage of rentals, etc. Focus on a section at a time.  Meanwhile post little craigslist ads . Not just for your sellers, but also for your buyers. Make relationships (I cannot stress that enough) and get involved. Business cards are cheap/free but you don't want to start out being too plain either, that's your first impression. Bandit signs are economical and effective, but make sure you look up your city codes, generally it's best to put them out Friday afternoons and pick them up Sunday.  Create a personal team. Be friends with realtors, title companies, handymen, private lenders, hard money, an accountant, the works.  Lastly, "bird dogs". Have little flyers to offer an incentive, talk to EVERYONE, your mail man, pizza delivery guy, anyone who drives routes for a living.  I wish you the best of luck.

Rick H. · Answer

@Travis Stok For starters, learn to spell strategy.

Learn to sell nose to nose, toes to toes. This will be a necessary skill when you need to sell on the phone and in print.

Learn copywriting. Copywriting master such as Halbert, Kennedy, Abraham and Bencivenga can educate you how to pursuade in print and for some of the selling for you.

Learn direct response marketing to create lead generation. Un-Qualified leads are time wasters and can be reduced or avoided entirely be good sales conversion systems.

Work in the head trip stuff that is necessary to understan, both from dealing with prospects with problems (because now you're n the problem-solving business) as well as your own issues that inevitably come up and have a way of creeping into biz, if left unchecked.

Since we are all an average of the five (5) people you spend the most time with, also consider your social environment and don't be afraid to upgrade, if needed.

Travis Stok · Answer

wholesale and flip some.

Lucas Machado · Answer

@Travis Stok There's plenty of great advice in this thread (even for me, and I've been around for a while!).

One other point to consider is volume.  I can't speak for Utah, but South Florida has substantial competition and a small amount of direct-mail marketing will not close one deal per month (as noted earlier in the thread, you didn't define deal so that needs to be fleshed out).

What is enough mailing?  I can't answer that directly.  We close a deal once every 40-60 leads (but our current goal as a business is to improve deal conversion to get to a deal every 20-40 leads).  We average around a 1% response rate when you sum up our lowest and highest response rate marketing (which depends on the type of mail and type of seller).  To close one typical fix-and-flip per month for around 20-80k profit, I would expect you need to mail around 4,000 leads per month (depending on your methods, that will cost between $2,000-$4,500).  That may sound like a lot, but if you wish to have deal profits of $600,000 per year spending $48,000 (or more if you are also doing online) in marketing makes sense.

Hank Hosge · Answer

A great response

Rick H. · Answer

It's a made-up statistic. I'm just repeating it, so don't give me any credit or discredit. However, it sounds about right to me.

William Hochstedler · Answer

Fascinating.  Where does this come from?  Why five?

How do I get 1 deal oer month?

Most Popular Reply