Wholesaling newbie- Should I keep cold calling?

Houston, Texas
Wholesaling
3yFollow

Wholesaling newbie- Should I keep cold calling?

Taylor Mosby
Investor · Memphis, TN · Member since 2022 · 12 posts · 5 votes

I just got started with real estate wholesaling and I am trying to get my first deal by the typical method of cold calling off-market property owners and asking if they'd consider a cash offer. Specifically, I've been targeting absentee owners of vacant properties with tax liens, pre-foreclosures, and tired landlords. 
I've been doing this for about 2 weeks now for 2-4 hours a day, but I have yet to make any measurable progress (no leads at all!). Most of the homeowners that pick up say that they've been bombarded with calls already and they're just not interested.

I'm not afraid of rejection, but I am concerned that maybe this is not the most effective use of my time. I've made hundreds of calls and most are disconnected, rejected, or extremely rude. Also, I've spent about $100 to use PropStream and Skip Tracing services. This may not be much to some, but I am a college student so it is a considerable amount. I am not allowing myself to give up on wholesaling, but I must admit that at times it is discouraging. 

For those with experience or knowledge in wholesaling, should I continue to cold-call? Is there a more effective method to generate leads these days?

I am open to any advice at all! 

1Reply
155 views

Most Popular Reply

Leroy Cooper
League City, TX · Member since 2018 · 13 posts · 6 votes
3y

@Taylor Mosby -- it only takes ONE day to change your life. One phone call to a tired landlord that wants to unload part or all of their portfolio. Keep grinding!  

I'm in the Houston area (League City) myself.  Let's connect!

2Reply
See this reply in the discussion

23 Replies

Jump to latestLatest
  • Trevor DeSimone
    Investor · NH · Member since 2021 · 39 posts · 34 votes
    3y

    Hey Taylor, 

    I'm not much for advice on the subject but I find myself relatively in the same situation. I'm considering flexing my strategy and instead focusing on mailing potential sellers. I'm worried my "shotgun" method of mailing may produce limited results. It's not terribly expensive to find appropriate mailing lists through prop stream or list source, but between purchasing lists and creating mailers and postage, it adds up relatively quickly. 

    0Reply
  • Bryant Brislin
    Title Representative · Irvine, CA · Member since 2017 · 874 posts · 519 votes
    3y

    @Taylor Mosby it's very tough right now in general given the market, but even if the market were good, I'd recommend teaming up with a veteran wholesaler who has closed multiple deals.

    0Reply
  • Shiela R.
    Investor · Boulder, CO · Member since 2017 · 304 posts · 347 votes
    3y

    @Taylor Mosby great work! Even if nothing to show for it just yet.  I've not been into cold calling but have door knocked (with a partner) and used direct mail with great results.  Do you have a script?  

    I have found the lists you mentioned to be fruitful.  I wonder if your message could be refined?  I had little success until I got that right.  Feel free to DM me.

    1Reply
  • Taylor Mosby
    OP
    Investor · Memphis, TN · Member since 2022 · 12 posts · 5 votes
    3y

    @Trevor DeSimone

    Totally understand, Trevor. Costs are definitely adding up quickly. I’m looking to switch up my strategy, too.

    0Reply
  • Taylor Mosby
    OP
    Investor · Memphis, TN · Member since 2022 · 12 posts · 5 votes
    3y

    @Shiela Roberts

    Hi Sheila- thanks for the reply!

    I have a script that I’ve been using but since it hasn’t produced any results, I totally agree that it needs refinement.

    Also, I haven’t tried direct mail but I’m open to trying that, too.

    Definitely going to DM you!

    1Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    3y

    Be careful when people swear by their methods and use terms like "worked well", or "great resutls".

    In this space you need to be analytical, and you need to have intelligence.

    What does "great results" mean?

    "Great" results is a term that is inherently valuable ONLY if compared to something else right? Just saying "great" doesn't mean anything.  Great, compared to WHAT exactly? Compared to doing nothing?

    People on Biggerpockets SERIOUSLY need to stop putting value on people and their words and start to evaluate things based on concrete data.

    I get about 4 to 12 leads a day. Highly motivated, all free and my wholesale deals range between $40K and $100K per deal. Is THAT a great result?  Depends right?

    Compared to most of you? Sure perhaps... BUT if I get 1 deal a year... it is not so great... agian.. depends.. doing no work, for these deals and it is 100% free? It could still be debated that these results would be acceptable.

    Start to see what I mean?

    People if you want to help... SHOW DATA! Don;t come with mere opinion.

    So to someone like me, that is an ACTUAL expert on lead generation, knowing the phsycology of different marketing strategies, knowing the mindset of a truly and actual motivated seller, I can PROMISE you, based on actual data collected, that cold calling is a joke. DMM is a joke (more so the lists you are targeting, but also the actual strategy in most cases).

    So stop listening to people that can't show proof, data and evidence.  If you want to become succesful, you need to step up. Don;t be average, don't just follow people based merely on their standards or their opinions. Think on your own and start demanding they explain their claims, make them back it up, and make them show data that supports their claims.

    This is not an attack on anyone responding here...

    Think about it..

    You all take time out of your day to respond to people and help them yes?

    If you truly want to help, AND LEARN from others, why don't we all SHOW DATA. That way, YOU, yes YOU can be PROVEN wrong.. which is not a bad thing. Being proven wrong is an opportunity to improve and do better. 

    But people here always see being proven wrong as a shot at their intergirity, and credibility and ego comes into play. Screw all that.

    You want to lear? Get rid of your ego and be open to being wrong.

    So no, do not continue cold calling.

    Work on credibility. Work on an online presence, work on giving value to your ideal audience.

    To do that you need to know your ideal audience. I am willing to bet not many here that responded truly know their iddeal audience. and as such most of you are marketing blindly. 

    Take this as an offensive thing and get pissed, or say.. "he has a point", and ask me how to even begin to find your idweal audience. This could be a bad thing for you, or an opportunity to learn.

    Start there.

    Start taking good pictures of yourself where you look like a serious business owner capable and compitent. Show pride in your business. Show a stocked social media presence. Do you have a linked in company page? No? WTH! You are a business and you are not on linkedIN? Your business is a joke. That is the opinion of cunsumers that are serious about finding a solution to their problem i.e. MOTIVATED sellers.See where I am getting at?

    So manyu of you rush into marketingm cold calling.. its free right? It is simple right? 

    WHY are you spending time money or effort into these methods when you are not even remotely set up to be seen by oyur ideal audience.

    Anyone that responds needs to back up their cliaims, so that others and you, can evaluate how good your own system truly is.

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Absolutely, it's super important you know how to build rapport and credibility over the phone 

    0Reply
  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    3y

    Hey there @Taylor Mosby

    Just to tag on to what @Jerryll Noorden has said, I'd like to lace you up that when folks ask you to DM them, it inevitably leads to a sales pitch.

    That said, having been there once myself on a shoestring budget, I'd like to offer this insight that changed my thinking quite a bit. I was taught by the folks here on BP that my time was my most valuable asset. Here's an example. You mention $100 as a hard cost for lists and services. But in the same paragraph, 2-4 hours per day for 2 weeks of your TIME. Let's just call that 30 hours. 

    At the time I got started, I billed my time at about $25/hour. Simple calculation, 30 (hours) X $25 (per hour)= $750. That (was) the opportunity cost of my time. If we extend that out to a full month, that equates to a $1600 per month budget ($750 x 2 + $100= $1600). Now.....what could you do with a $1600 per month budget? The opportunity cost shows you what you're trading your time for.

    Do you want to be a marketer, or a Real Estate Investor? You mention that you're a college student. If you were a Law student learning to become a Lawyer, how many courses would you take in Accounting to learn to manage your income? 

    I tell you this to encourage you to begin to highly value your time. Investors who do not "pay" themselves tend to burn out and go out of business. I've seen it first hand dozens of times over.

    1Reply
  • Adriese Williams
    Rental Property Investor · Durham, NC · Member since 2015 · 69 posts · 32 votes
    3y

    Keep going!, niche down to a geographical area with less competition, sub markets, 2 hour radius from where you live. switch up your scripts, be creative! How bad do you really want to be a real estate investor? Also consider coaching.

    0Reply
  • Shiela R.
    Investor · Boulder, CO · Member since 2017 · 304 posts · 347 votes
    3y

    @Jerryll Noorden and @Jerry Puckett - I ask people to DM bc my time is valuable.  If you look at my profile I think my track record stands on its own. 

    I've been out of the space for awhile but I actually used to have a lead generation website and a separate site that was a template website specifically for real estate investors (Invest-O-Matic).  I took these sites down bc I've been raising kids, healing from PTSD and doing deals.  My business is 100% referral after 20 years.

    When I started, at 23 yrs old, I put a paid mentorship on a cc.  Best money I ever spent. I have had great success by following what my mentor told me to do.  And, yes, part of that was direct mail accompanied by specific, proven scripts.  Like most things, there is a right way and a wrong way to get results from direct mail and other avenues of marketing. 

    I've seen how SEO can drive traffic and that's great if that's your jam. I've been sought out by SEO companies to create content for them. So I know it works. But don't knock those of us who aren't doing that. I want to help people succeed in REI. I give a lot away - just search BP. If someone finds value in what I have to offer (which at the time of this post is nothing official bc I'm building it as we write) then we have an exchange (money for knowledge and education). I expect people to pay for my knowledge and experience as I did when I was starting out. It's a fast track. If that's not for you, fine. I'll leave you with something my mentor said: "You can be right or you can be rich."

    1Reply
  • Briannan Burns
    Investor · Birmingham, AL · Member since 2019 · 42 posts · 11 votes
    3y

    Personally, I feel like cold calling will always be one of, if not the, best way to get deals- especially off-market. Cold calling allows you to build rapport with sellers that other means of contact may not necessarily allow; however, it is very tedious & time consuming..

    If you have the budget to allow for it, I do recommend looking on Fiverr (or something similar, I just have experience with Fiverr) to find an experienced cold caller. There are also other VA sites that offer cold calling services at a discount who are already trained. Even Fiverr prices are relatively reasonable & most are willing to learn your systems & negotiate a long-term relationship, to keep the work going.

    You can also find significantly cheaper skiptracing services on there- just make sure you read reviews & ask questions about where they're skiptracing from.

    It may also be worth noting to do lead generation in ways of funneling, like FB ads, IG ads, & things like that.

    Hope this helps some! :)

    1Reply
  • Taylor Mosby
    OP
    Investor · Memphis, TN · Member since 2022 · 12 posts · 5 votes
    3y

    @Jerryll Noorden

    Hey Jerryll,

    I really appreciate you taking out the time to respond. You have a good point—credibility is important. I’m going to start working on my business presence ASAP.

    I don’t want to fall into the trap of blind marketing, so how can I begin to find a target audience?

    0Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    3y

    @Taylor Mosby
    Keep hitting the phones. You are definitely not going to find a deal in the first 2 weeks it's going to take some time. Just keep hitting the phones. 

    [email protected]614-412-4565
    Reafco-555 Reviews
    View Page
    1Reply
  • Taylor Mosby
    OP
    Investor · Memphis, TN · Member since 2022 · 12 posts · 5 votes
    3y

    @Jerry Puckett

    Thanks so much for this response, Jerry. I guess I’ve been under the illusion that my time is “free” which is totally not true. Your response is making me realize that I am actually losing money by thinking this way.

    At this pace, I can definitely understand how many people can burnout quickly. I should absolutely begin to value my time more and reframe the way I think about time in relation to money.

    1Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    3y
    Quote from @Briannan Burns:

    Personally, I feel like cold calling will always be one of, if not the, best way to get deals- especially off-market. Cold calling allows you to build rapport with sellers that other means of contact may not necessarily allow; however, it is very tedious & time consuming..

    If you have the budget to allow for it, I do recommend looking on Fiverr (or something similar, I just have experience with Fiverr) to find an experienced cold caller. There are also other VA sites that offer cold calling services at a discount who are already trained. Even Fiverr prices are relatively reasonable & most are willing to learn your systems & negotiate a long-term relationship, to keep the work going.

    You can also find significantly cheaper skiptracing services on there- just make sure you read reviews & ask questions about where they're skiptracing from.

    It may also be worth noting to do lead generation in ways of funneling, like FB ads, IG ads, & things like that.

    Hope this helps some! :)

     "THE BEST " way to get leads right?

    Here is the point I am trying to make.

    Not to bash you, but just to show you where you are in fact wrong so you can expand your way of thinking.

    Here are my leads:

    All free, ALL motivated. My conversion rate is 80%+ 

    Cold calling has a conversion rate of less than 3%.

    So how can anyone truly say that cold calling is THE BEST way, right? This is very strongly opinionated.

    Now, you say.. you build rapport with sellers.

    This also is absolutely not so.

    Yes sure for every person you dial that ACTUALLY is motivated you can build rapport. But that is nOT what you said. You said COLD CALLING offers this.

    No it does not.

    For every person you "build rapport" you have seriously pissed off hunderds of people if not thousands. So the majority of the people you call are absolutely NOT building rapprt with you.  Your building rapport with someone you rweached out to useing cold calling, is not connected to the cold calling strategy itself right?

    Cold calling ITSELF doesn't give the advantage or the ability to be able to build rapprt. That is not a "cold calling" thing. That is a reaching a motivated seller thing. Sure you got lucky and reached a seller and now you are building rapprt. Not a cold calling thing. 

    Again... look at this:

    All effortless, all on autopilot, I am not calling anyone, not being yelled at, in fact I am being appreciated and thanked for it!

    NOW...

    Look at the deals I am making through my methods (NOT COLD CALLING)

    I collect $100,000 wholesale fees, and $200K flipping profits through these methods ALL.THE.TIME

    So my question is this. How can  anyone still say "the best way" to find deals, when I clearly show an other way that is in EVERY way for better.

    This is what I mean. STOP with the opinions. Show data. Show me how cold calling is better than this?!

    It just is not!

    I truly hope you are openminded enough to see DATA for what it is and not use emotions or opinions to defend a claim.

    So here is my single statement in an attempt to help.

    All the reasons you listed why you think cold calling is the best, has nothing to do with cold calling. it has to do with finding a motivated seller, and no list can possible find motivated sellers. Can't!!

    Listen, because a certain seller so happened to be in florclosure DOES NOT MEAN, that all or the majority of people in foreclosure are motivated. Try to understand that concept. Once you do you will see why and how I am in fact factually correct!

    1Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    3y
    Quote from @Patrick Drury:

    @Taylor Mosby
    Keep hitting the phones. You are definitely not going to find a deal in the first 2 weeks it's going to take some time. Just keep hitting the phones. 


     OK if not in 2 weeks, when?

    What about cold calling implies that 2 weeks is not good. 

    Is she going to do somethign DIFFERENT after the two weeks? No right?

    See how just unintelligent this post is? Agian I don;t mean to offend. just facts.

    WHY not expect anything in 2 weeks, but continuing the exact same thing, magically it will be better?

    SEE how none of these responses are intellectually or analytcally based?

    Keep in mind I am a scientist. A NASA scientist. These kind of statements are extremely offensive to me and people like me that think.

    I will tell you why  for cold calling you shouldn't expect anythign in 2 weeks... because it is luck based. It is a misconstrued "law of averages" that you are counting on.

    Do you really think when you flip a coin 16 times and all 16 times it landed on "heads" that you have more chance now that it will be "tail" JUST because it landed on heads so often?

    This experiement has no memory. The "universe" is not keeping track on the fact that heads has a 16 count and thus it is time for tails.

    Each experiment has a completely new probability.

    So agian...

    WHY after 2 weeks?

    Do you think the universe keeps track on how many people you called and there is BOUND to have one say yes after 4000 no? If your list has NO motivated sellers in it I don't care how many weeks you wait before you get a hit.. NOT going to happen.

    People start THINKING, You all are smarter than this seriously!

    0Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    3y
    Quote from @Shiela R.:

    @Jerryll Noorden and @Jerry Puckett - I ask people to DM bc my time is valuable.  If you look at my profile I think my track record stands on its own. 

    I've been out of the space for awhile but I actually used to have a lead generation website and a separate site that was a template website specifically for real estate investors (Invest-O-Matic).  I took these sites down bc I've been raising kids, healing from PTSD and doing deals.  My business is 100% referral after 20 years.

    When I started, at 23 yrs old, I put a paid mentorship on a cc.  Best money I ever spent. I have had great success by following what my mentor told me to do.  And, yes, part of that was direct mail accompanied by specific, proven scripts.  Like most things, there is a right way and a wrong way to get results from direct mail and other avenues of marketing. 

    I've seen how SEO can drive traffic and that's great if that's your jam. I've been sought out by SEO companies to create content for them. So I know it works. But don't knock those of us who aren't doing that. I want to help people succeed in REI. I give a lot away - just search BP. If someone finds value in what I have to offer (which at the time of this post is nothing official bc I'm building it as we write) then we have an exchange (money for knowledge and education). I expect people to pay for my knowledge and experience as I did when I was starting out. It's a fast track. If that's not for you, fine. I'll leave you with something my mentor said: "You can be right or you can be rich."


     Sorry but no. I doubt you know how SEO works. Just trust me on this.

    And I am not forcing anuyone to do a certain thing. All I am doing is tell people they are wrong when they are in fact factually wrong. What you do with the "being told they are wrong" is up to you. Use it to grow, or be stubborn, I honestly don't care. I simply step in when people give the wrong, FACTUALLY wrong advise to others.

    A track record means nothing honestly. I have seen scammers with a sold track record. Lily Thompson has a solid track record doing lists.  This doesn't mean it is sorrect.

    You may have a solid track record getting deals through DMM.. but  what does that mean? It only means you CAN indeed become succesful doing it. NO ONE said you couldn't/ You only prove it is POSSIBLE. WHat I am saying stands. DMM, the list, not the strategy, is simply bad. 

    I mean.. you talk about track record but what is your deal rate. What is your conversion rate. what are your average profits/deal. What is the time spend/transaction vs the  profit made for that transaction.

    THAT is data. THAT tells me something.

    THAT shows whether or not any strategy is a valid one or not.. not a "sold track record". Again not bashing you... simply trying to make you see where  I am coing from, someone that analysis, and evaluates strategies based on numbers facts and data, not opinion. What to you is a sold track record, for me is a system with poor results.

    If a wholesale deal gives me less than $40K, it is a bad deal for me. To you that may be a great deal.. and you will say it is a sold track record while for me.. it is back to the drawing board.

    Do not see this as me being the enemy. I am trying (hard) to open y'alls minds and see things how EVERYONE should be seeing things. FACTS.

    Here check this out.

    Just delete in your head everything I said and just focus on this ONE thing...

    I have shown my results... are you getting these results or even near it?

    If no, there is not debating or arguing this. If yes... GREAT!! You are doing good in my book.

    Thats all, NOTHING else matters.


    So are you?

    0Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    3y
    Quote from @Jerry Puckett:

    Hey there @Taylor Mosby

    Just to tag on to what @Jerryll Noorden has said, I'd like to lace you up that when folks ask you to DM them, it inevitably leads to a sales pitch.

    That said, having been there once myself on a shoestring budget, I'd like to offer this insight that changed my thinking quite a bit. I was taught by the folks here on BP that my time was my most valuable asset. Here's an example. You mention $100 as a hard cost for lists and services. But in the same paragraph, 2-4 hours per day for 2 weeks of your TIME. Let's just call that 30 hours. 

    At the time I got started, I billed my time at about $25/hour. Simple calculation, 30 (hours) X $25 (per hour)= $750. That (was) the opportunity cost of my time. If we extend that out to a full month, that equates to a $1600 per month budget ($750 x 2 + $100= $1600). Now.....what could you do with a $1600 per month budget? The opportunity cost shows you what you're trading your time for.

    Do you want to be a marketer, or a Real Estate Investor? You mention that you're a college student. If you were a Law student learning to become a Lawyer, how many courses would you take in Accounting to learn to manage your income? 

    I tell you this to encourage you to begin to highly value your time. Investors who do not "pay" themselves tend to burn out and go out of business. I've seen it first hand dozens of times over.


    Yes, exactly this too!

    0Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    3y
    Quote from @Taylor Mosby:

    @Jerryll Noorden

    Hey Jerryll,

    I really appreciate you taking out the time to respond. You have a good point—credibility is important. I’m going to start working on my business presence ASAP.

    I don’t want to fall into the trap of blind marketing, so how can I begin to find a target audience?


     Yes,

    Value is fiirst. Credibility is a close second.

    See it this way... do you see Nike cold calling?

    No right?

    Have you ever got a call from Elon Musk trying to sell you a tesla?

    No? Hmm interesting.

    Why do you think that is? Why are the big credible companies not resorting to cold claling "IF IT WORKED SO WELL?!"

    Your credibility is on the line. get it? Cold claling? Line?

    Get it?

    HAAA

    0Reply
  • Leroy Cooper
    League City, TX · Member since 2018 · 13 posts · 6 votes
    3y

    @Taylor Mosby -- it only takes ONE day to change your life. One phone call to a tired landlord that wants to unload part or all of their portfolio. Keep grinding!  

    I'm in the Houston area (League City) myself.  Let's connect!

    2Reply
  • Jp KilduffPro Member
    Wholesaler · Brevard Co. Florida · Member since 2016 · 395 posts · 76 votes
    3y

    Hello, there are several skip-tracing companies out there. Your best bet is to find one with flexible pricing options based on your needs, excellent customer service, and an affiliate referral program. If you have any further questions or are interested in a referral code, let me know.

    Thank you,

    0Reply
  • Jamal Bieniemy
    Member since 2020 · 10 posts · 6 votes
    3y
    Quote from @Taylor Mosby:

    I just got started with real estate wholesaling and I am trying to get my first deal by the typical method of cold calling off-market property owners and asking if they'd consider a cash offer. Specifically, I've been targeting absentee owners of vacant properties with tax liens, pre-foreclosures, and tired landlords. 
    I've been doing this for about 2 weeks now for 2-4 hours a day, but I have yet to make any measurable progress (no leads at all!). Most of the homeowners that pick up say that they've been bombarded with calls already and they're just not interested.

    I'm not afraid of rejection, but I am concerned that maybe this is not the most effective use of my time. I've made hundreds of calls and most are disconnected, rejected, or extremely rude. Also, I've spent about $100 to use PropStream and Skip Tracing services. This may not be much to some, but I am a college student so it is a considerable amount. I am not allowing myself to give up on wholesaling, but I must admit that at times it is discouraging. 

    For those with experience or knowledge in wholesaling, should I continue to cold-call? Is there a more effective method to generate leads these days?

    I am open to any advice at all! 


    Are you pulling list from Harris county tax assessors office?
    0Reply
  • Richard Loniewski
    Real Estate Agent · NJ · Member since 2021 · 567 posts · 127 votes
    3y

    They do get same calls from a ton of other investors, your pitch needs to be different, creative. I used to call pre-foreclosure properties and suggest a short sale (I educated myself on it and explained how it could help them get out of a bad situation). It was very different to the regular buy your house cash, close in 2 weeks they have heard several time. I got a few properties that way. Be different than everyone else!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free