currently averaging 15-20 deals per year. Trying to GROW!

46 Replies

Hello, I am currently averaging around 15-20 deals a year. I have one active cold caller who calls niche data and does some bulk dialing. We focus a majority of our time on the Data we are calling and following up. I personally manual call prospects that my cold caller is not able to get in contact with. But as of lately we are trying to grow. I would like to be doing one deal per week. We mainly flip them or turn them into rentals/multi-family  We have tried Facebook ads but the deals just did not have enough meat on the bones. We like to average $30,000 + on each deal or $400+ a month cash flow per door plus solid equity. My question is I feel like we have hit a ceiling and it's been really hard to get past this ceiling of 15-20 flips a year. Any recommendations on how to bring in more deals efficiently? I know it is going to require work. Anyone doing more deals than me what is your recommended next step? We like to run a lean system so we don't ever get ahead of ourselves. I know 20 deals a year may be a lot to some people but I still am not confident that I should still be in the same place after my second year of sourcing off-market deals with how much hard work I am putting in to get these deals. 

@Joe Villeneuve Because the consistency of averaging 1-2 solid deals/month and getting past that has been extremely difficult. It's like being in the gym and not being able to get past a certain PR so asking other professionals how can you switch up your training to get that New PR.  My main focus is to be able to continue to grow my rental portfolio and raise capital through relationships to acquire large multi-family. The rate I am buying rentals is keeping me more on the cash-poor side with more flips that will help pile more cash. 

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Originally posted by @Benjamin Hecker:

@Joe Villeneuve Because the consistency of averaging 1-2 solid deals/month and getting past that has been extremely difficult. It's like being in the gym and not being able to get past a certain PR so asking other professionals how can you switch up your training to get that New PR.  My main focus is to be able to continue to grow my rental portfolio and raise capital through relationships to acquire large multi-family. The rate I am buying rentals is keeping me more on the cash-poor side with more flips that will help pile more cash. 

 The answer to your question/problem is in this answer...and why I asked you why you were focused on the number of properties, and then said your focus was in the wrong place.  The answer to your dilemma, is in the last sentence you wrote in this comment above.

Hows it going Benjamin,

It sounds like you've hit a plateau, which is very common.

My advice is to go back and look at your KPIs, the numbers will tell a story. (Look at cost per lead, cost per contract, cost per deal, average deal size, best months etc.)

Understand that what got you to 15-20 deals a year won't get you to 30-50 deals a year. It's time to up the marketing, up the drive and up the follow up.

Best of luck.

@Joe Gonzalez Thank you for your response. We Track our KPI's monthly we know where most of the deals come from but from that niche data, there are only so many prospects to market to.  I have been looking at upping the marketing I'm thinking some Facebook ads and google will push me a couple more deals a year. (We are linked up with a pretty good marketing company)  It's crazy how some of these bigger guys have 20 plus cold callers That is a lot of data management ! Do you do TLO and manual calling at all with a click-to-call platform? 

Originally posted by @Benjamin Hecker:

@Joe Villeneuve Are you insisting slow down on buying rentals instead; pumping more money into my business model? 

NO. I'm telling you to stop counting the number of properties. REI isn't a contest to see who dies with the most properties. Setting goals per year based on a number of properties most likely (almost always) leads to bad deals.

One great deal, or 2 good deals are much better than 10 deals of unknown quality.

If you're basing the number of deals on some sort of average number of dollars/deal, you're approaching it backwards.

@Joe Villeneuve Sorry maybe I was not clear. The problem is like what Joe Gonzalez stated "hitting the Plateau" I guess I was looking for a more technical answer. I am extremely happy with where I have gotten this business and I am looking for more insight on getting it to the next level. Maybe just being patient and enjoying the journey is the answer. I'm just an extremely hungry individual and it's not about retirement or having nice things. I LOVE CLOSING DEALS AND I WANT MORE OF THEM ! That's where I get my satisfaction. Do you have any marketing recommendations? We like the evergreen model. 

Originally posted by @Benjamin Hecker:

@Joe Villeneuve Sorry maybe I was not clear. The problem is like what Joe Gonzalez stated "hitting the Plateau" I guess I was looking for a more technical answer. I am extremely happy with where I have gotten this business and I am looking for more insight on getting it to the next level. Maybe just being patient and enjoying the journey is the answer. I'm just an extremely hungry individual and it's not about retirement or having nice things. I LOVE CLOSING DEALS AND I WANT MORE OF THEM ! That's where I get my satisfaction. Do you have any marketing recommendations? We like the evergreen model. 

 What you're describing is just another form of drug addiction.  If you focus on the number of deals, and you run out of them, eventually you will start accepting deals of less value, then even less value, etc...until you start rationalizing negative CF.  Then...

@Joe Villeneuve I respect your input. And you not knowing me I understand the concern. I don't take deals less than 30,000 in profit. Anything less I leave for people as you are describing as desperate. I am not in the business to be a charity. I turn deals down regularly. I as I stated in my original Post Nothing Less than 30,000 net per project which is also based on the size of the project or 400/ month cash flow. I do not gamble with this. 

When I hit a plateau or get frustrated I take a step back. Review what you are currently doing. See if there's anyway to improve the conversion, systems. The market is getting tighter so it does take more marketing and leads to close more. If it makes sense I'd up marketing or figure out a new pillar for leads. Doing what you did for 15-20 won't improve your production like crazy. As time goes you'll get repeat clients, word of mouth but it won't grow you to 40-50 deals. I'd also have a strong WHY. Setting a goal is great but there has to be a reason to do that so you can accomplish it. Once you figure out the WHY you can brainstorm a plan. Is there a lead source you currently do you can double down on? Is there a new one you have been thinking about that you'd want to try? What I did for 2022 goals is worked backwards. I put the goal I had. Then calculated how many leads it'd take to get to that. For example if your goal is 50 deals and your current conversion rate is 5% you'd need 1,000 leads to hit that. Only way to get more deals is up the lead source or improve conversion, at 10% conversion it is 500 leads needed. This helped me the most, I took a couple days to go to a lake to do this. Takes away the guessing and you can track it. Hope these few things helped 

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@Caleb Brown Thank you I am actually interested in that. Since I can do my yearly KPI come to the end of the month. I am gonna be sure to run everything backward. Thank you! What kind of marketing are you getting the greatest results from this year? 

I am an agent so it's a little different compared to you. My biggest pillars are SOI, referrals, BP, FB, cold calling/texting, past clients. 

@Bud Gaffney ? I do not understand your comment.  I'm not looking for approval here. I am hoping people that have been doing this a lot longer than I would be willing to share any golden nuggets or strategies they have implemented to help grow their business exponentially. Could be beneficial to everyone. For instance one of the biggest contributors to our deal flow has been d4d unknown age unknown equity.  

@Caleb Brown I am as well I just do not practice on the retail side unless it is a strong referral. And your right that's a completely different ball game. My close buddy does great utilizing 8,000 a month in  Zillow leads and referrals. . Something interesting I have noticed even when we are cold calling all these prospects and they want to sell their property but our price does not match what they are looking for. We have not been able to convert any of those prospects into listings. I think it has something to with the psychological factor that we are calling to buy the house outright from them but if we don't agree on a price they don't want to use us as a listing agent even if we discuss that option with them. 

Ah nice. Yeah it's 2 different coins. I kind of wholesale, I find deals off market and I have a buyer lock it up. Last year closed 40's on deals this year will close 85-90, 2022 goal is 150. Biggest things that helped me scale is systems, assistants, touch plan and focusing on a few lead sources. Knowing how many leads you come in and conversion will help the most. From there it's just scaling up :)

@Caleb Brown Absolutely crushing it! Seems like  I am not the only one trying to double my business. Maybe using a separate agent that is an expert in the retail field I can send them the leads that I can not turn into a deal. And work out some sort of split with them. They would spend more time following up with them because that's what they specialize in hmm..... 

That'd work. Collect a referral fee. Agent can send you investors for deals. I work with plenty of wholesalers so find an agent who would partner. 

@Caleb BrownI would do it my self considering I am an agent but it just has not been working in my favor. I think using another agent would be worth it if the conversion rate is better. Thanks, DM your info I'm gonna be getting involved with large multi-family in the next year or so. I am interested in 8+ unit deals I am open to any areas. 

@Benjamin Hecker Have you expanded your marketing channels to direct mail and PPC? We consistently get 2 deals per month from each of those channels.

What about the MLS? Everyone says there are no deals there, but if you set a lead measure of making one MLS offer per day, you will likely pick up 8 to 10 more deals per year that way.

What about networking with wholesalers and investor/agents in your market? Make one of your KPI's taking 1 new wholesaler, agent, or investor per week out for lunch or coffee, and I guarantee you will add more deals.