Hi, I am regularly cold calling to get a wholesale deal but I am experiencing extremely low conversion rates and I do not know where I am going wrong at for this to be happening right now. For this month I have worked with a list of 1,000 people, dialed 5000 numbers, and cold called for 20 hours in total and have only gotten 1 lead out of this. The list I used was 600 high equity/vacant's and 400 divorcee's from propstream. I think the biggest issue is that I am getting so few contacts with the correct property owner that after cold calling for 20 hours and 5000 calls the correct person only picks up 1% of the time. 90% of calls picked up go straight to automated voicemail and even when I connect with the right number, it goes to the owner's voicemail 80% of the time. For my data I use propstream for my lists and early on I also used propstream for my skiptracing for the first 600 people on my list, since then I have used batch skip tracing and i've been getting more contact but the numbers are still low. I call out of state with a Florida number, and call between 9-6pm EST. The second issue is that for the owners that do pickup very few of them are even willing to sell their house and even hear a cash offer. Only 3 people in 5000 dials were even willing to hear a cash offer and 2 of them just hung up on me and said they weren't interested when I did not give them an offer on the spot. Can somebody give me some advice on what I should do? July 1-21 KPI's with MojoDialer Comparison KPI

With all due respect, wholesaling for most people is a huge waste of time and energy. Save your money and buy something. Best of luck to you.

You're better off making calls and building relationships with agents who are doing deals in the area you're looking to buy. Cold calling unmotivated sellers is a waste of time and just annoys people.

Ok, look, I am gonna cut through all this BS with a Light-Saber.... The UNIVERSAL, FUNDAMENTAL, LAW of business is: Solve-A-Problem. @Mark Weins, exactly what problem are you "solving"? People who "need" to sell there home as-is? Really? Is there a "problem" to solve there? With the 4,827 other persons and companies offering "solutions" for that? With the Redfin's and Opendoors of the world chasing that pony? With Blackrock offering to buy those homes as-is top of market price..... What PROBELM are you solving? With all your calls and lists, what VALUE are you delivering? NONE.... That is the unfiltered, zero-BS, direct FACTS and TRUTH of it, and why your floundering. Because your business plan is manure. This is why countless THOUSANDS right at this exact same minute are doing the exact same thing, making a bunch of $ for a list seller, a guru program, a dialer, but DIDDLY-SQUAT for themselves. Your the product Mark, you are the profit center, you drank the cool-aid to make yourself other's pay-check. Do you know who the BEST wholesalers are in the world? They have a title, it's called REALTOR. They make more $ in 1-month than the entire "wholesaler" industry does in a year.

I wholeheartedly endorse all wholesalers continue to call random phone numbers for 10-12 hours a day. Keep calling day after day after day, even after the owner has told you they don’t want to sell. Additionally, wholesaler should spend all of their time calling people that have no reason to sell. I suggest all wholesalers do zero research on properties spend all their time calling owner off of some list they paid for. I don’t get enough phone calls from wholesalers that don’t know shit about my properties, shit about my market or shit about real estate. But please piss away a few thousand more dollars on a some course or list of numbers to dial. It’s all entertainment to me.

1. So you’re the guy. Pissed off 4,999 people. Stop calling. Why is wholesaling even a REI strategy? 2. Have you looked at different “funnels”? 3. Door to door sales at 17 years old. 1/2is my take. $40 first week, $600 second week, $1,600 third week. This is money to go to college on in three months. Plus to cover rent and food while on the road selling. Week 1- the reason I was not selling was because people didn’t love me. Week 2- I was starting to learn my product. Week 3- was starting to learn people and how to sell in 30 seconds. As I was walking up the front before I knocked on the door, I knew which buttons to push. Week 4- I learned to love a good “NO”. I prefer people to curse me out and slam the door in my face. I love those people. Learned I was making a sale 1 out of 10 doors. The faster I got a solid “heck NO”, the closer I was to my 1 out of 10 sales. I got tired of being picked up by the police. I’m a nice guy. Construction job was waiting back home. These few weeks were some of the greatest moments in my life. Don’t offer to buy their house. Offer them solutions. Get several sales funnels. We are in self storage. Get calls, mailers and emails all the time. What pisses me off is not the call. It’s them not knowing anything about me or my site. The laziness of their effort. The waste of my time because they don’t invest their time. If I was in the buy mode. I would make an offer up front, good for 3 days. Subject to. I would call them again in 6 months and keep calling and preferably stopping by personally. Don’t make 5,000 calls. Make 20 specific calls per day. Mainly on the weekend.

I don’t believe in wholesaling. I believe in making money. I’m sure someone out there has made a $1mm wholesaling but they are the rarity. Curious how did you pick wholesaling out of all the strategies?

5000 calls - only 1 lead?

Mark Weins

OP

Member since 2023 · 60 posts · 28 votes

3y

@todd jones

I did some research and switching my service to readymode instead of Mojodialer and using 40-50 new numbers to do my cold calling. I think this will absolutely solve the problem as numbers that make more 150 calls like you said per day do get spammed flagged but based on my research these can reset as well and I can constantly check if my numbers are flagged or not using readymode.

Thank you for all of your responses. I am not focused on anything else but getting my first deal right now, i'm investing under 5k into wholesaling and I think I can put in the hours to get my first deal and reinvest all earnings into building this buisness into a system and using the buisness to get deeper into REI if succesful. Once again I appreciate all the support and help shown to me. Thank you!

0 Reply

Erin ChurchPro Member

Real Estate Agent · North Augusta, SC · Member since 2017 · 254 posts · 233 votes

3y

Quote from @Joe Villeneuve:

Quote from @Erin Church:

@Joe Villeneuve

Plenty of reasons folks wholesale - house needs too much work, they don’t want to clean it out/it has bad memories, has tenants that aren’t ideal, they need cash fast, they need cash before sale to get moved… there are lots of reasons that a cash deal is the way a seller may need to go.

Why did you direct this statement to me. Don't see what this has to do with anything I said. Sorry.

Hey Joe,

I bolded what I was responding to. You said:

I wouldn't say that. The problem is most likely that he is approaching people as a wholesaler. That's not the way to do it. Make an offer as a buyer, then sell the contract. I can't think of any reason why any seller would consider using a wholesaler to sell their property. They would just use an agent.

Hope you're having a great start to your week! :)

0 Reply

Shawn McenteerBusiness Member

Realtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes

3y

I think @Erin Church nailed it on the head.

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Katlynn Teague

Real Estate Agent · Atlanta, GA · Member since 2022 · 352 posts · 219 votes

3y

Mark, wholesaling is not a waste of time. You've stated that you're willing to work hard, continue to do so and you will see results. Wholesaling is like pushing a 10,000lb rock, takes a lot of effort to get it moving but once it does it keeps on moving.

Take time and practice your phone script over and over. Get to know the people your talking with, from the lists you're calling these people have been through a lot. Treat them the way you would want to be treated in that situation and come to them with a place of care. Bring solutions to their problem!
If your using a dialer sometimes the number will be marked as spam. Try using a different number on the dialer and see if that helps. Also, I know you can program voicemails, have a different voicemail for the divorcee deals than the vacant ones. Send a text as well, if the number does go straight to voicemail.

Don't listen to anyone telling you it is a waste of time. This is a great way to earn capital you can use to invest in real estate to have your own flips or rentals. Keep grinding, and best of luck to you!

1 Reply

Marcy Ramich

Member since 2023 · 45 posts · 13 votes

2y

Quote from @Account Closed:

Quote from @Mark Weins:

@Chris Seveney

I know 20 hours is not much, but I am using the 5000 dials as baseline data and I feel like it's enough calls to know if I am doing something wrong which seems to be the current issue with contacts.

I don't mind if it takes me 3 months or 200+ hours to get my first deal. All that matters to me is that I get it no matter how long it takes and that I am doing things properly. I also agree with you that the list I use seems to have been called multiple times by big players but i'm not sure if that's something I can change as I can only do virtual wholesaling in the US.

I guess my expectation is to have similar kpi's that I have researched online for cold calling but I just don't know why my contact rate specifically is so low, I am not connecting with the owner of the property when I am cold calling at the moment and it is killing my ability to generate leads if I cannot talk to the owners at all. The KPI for connects should be 7-10% for me it's 1% currently. My other expectation is to just have an idea of how much I need to spend on a list and what size it should be to get my first deal, I don't mind putting in 200+ hours but for me skiptracing is the most expensive part of the business and I am aiming to get my first deal in 3 months by using a list of 6000 foreclosures. This is my current budget and I want to know if a list of 6000 foreclosures would be enough to get me my first deal

I got my start with foreclosures (a sale date had been advertised). I mailed and door knocked and made my first million doing that. It was work though. Phone calling didn't net me any business.

Your comment: "This is my current budget and I want to know if a list of 6000 foreclosures would be enough to get me my first deal"

How sure are you about how current the list is?
Each state has a different way that processes foreclosures. You need to know for each state you want to work in, what the borrower's and bank's options are in what timeframe. Most are handled through loan modifications with the bank. Some are able to bring their loan current. Some sell rather than go through foreclosure. Some simply hand the keys to the bank.

Here is the secret sauce: The borrower only responds when it's within a week or two of the sale. That's right. Right up at the end. That is when the pressure is greatest.

If they are in pre-foreclosure (before the sale date has been set) they usually believe they will find a way out. Also, keep in mind, they are behind on all of their other bills as well. They are tired of getting collection phone calls so they don't pick up the phone if they don't recognize the number.

I once purchased some fairly expensive foreclosure and pre-foreclosure direct mail leads, coming right to my phone the day the letter arrived in their mailbox.. You are so right that people think they're going to hang on to their house. The situations are often super complicated, some of them have been through foreclosure already, and one lady said that she knew that God would get her out of foreclosure (her third) when she stood before the judge at auction. I almost got a PSA signed from her just in case God would decide to speak to her through the judges foreclosure verdict. I gently told her maybe my offer would be her miracle.

1 Reply

Marcy Ramich

Member since 2023 · 45 posts · 13 votes

2y

Quote from @Jay Hinrichs:

Quote from @Account Closed:

Quote from @Mark Weins:

@Chris Seveney

I know 20 hours is not much, but I am using the 5000 dials as baseline data and I feel like it's enough calls to know if I am doing something wrong which seems to be the current issue with contacts.

I don't mind if it takes me 3 months or 200+ hours to get my first deal. All that matters to me is that I get it no matter how long it takes and that I am doing things properly. I also agree with you that the list I use seems to have been called multiple times by big players but i'm not sure if that's something I can change as I can only do virtual wholesaling in the US.

I guess my expectation is to have similar kpi's that I have researched online for cold calling but I just don't know why my contact rate specifically is so low, I am not connecting with the owner of the property when I am cold calling at the moment and it is killing my ability to generate leads if I cannot talk to the owners at all. The KPI for connects should be 7-10% for me it's 1% currently. My other expectation is to just have an idea of how much I need to spend on a list and what size it should be to get my first deal, I don't mind putting in 200+ hours but for me skiptracing is the most expensive part of the business and I am aiming to get my first deal in 3 months by using a list of 6000 foreclosures. This is my current budget and I want to know if a list of 6000 foreclosures would be enough to get me my first deal

I got my start with foreclosures (a sale date had been advertised). I mailed and door knocked and made my first million doing that. It was work though. Phone calling didn't net me any business.

Your comment: "This is my current budget and I want to know if a list of 6000 foreclosures would be enough to get me my first deal"

How sure are you about how current the list is?
Each state has a different way that processes foreclosures. You need to know for each state you want to work in, what the borrower's and bank's options are in what timeframe. Most are handled through loan modifications with the bank. Some are able to bring their loan current. Some sell rather than go through foreclosure. Some simply hand the keys to the bank.

Here is the secret sauce: The borrower only responds when it's within a week or two of the sale. That's right. Right up at the end. That is when the pressure is greatest.

If they are in pre-foreclosure (before the sale date has been set) they usually believe they will find a way out. Also, keep in mind, they are behind on all of their other bills as well. They are tired of getting collection phone calls so they don't pick up the phone if they don't recognize the number.

MIke your pre foreclosure work and mine are exactly the same.. We never contacted a pre forclosure until 2 weeks from the sale. It was ALL door knocking No calls no letters knock on the door. As you know this required a very particular set of skills to be successful. I think also since we worked in the same markets IE WA OR and some CA at least those were my markets. the foreclosure process allowed this type of last minute rescues to take place. There is absolutely no question someone in foreclosure is in a state of denial big time. They think something is going to happen to rescue them rich uncle sell the boat etc etc then the next thing you know its Monday and the sale is Friday thats when we would land our deals.

Those skills included being able to read title yourself. Or in my case and maybe yours title company customer service would do a verbal date down for us.. ( some risk in missing something but not a huge risk) you need cash no loans are going to work . You need to have the trustee's and who ever is handling the file on speed dial.. you need to get written permission from owner to contact their mortgage company so in person meeting is mandatory to walk them through the process. Then you need to be able to bring your cashiers check to the foreclosure trustee usually the day before the sale or make arrangements with the trustee that will allow you to hand it to the sale cryer but that can have some risks. Then you need to deal with the owners in a hold over situation because they are not going to leave in that short of time. For us being based out of PDX we have couriers that would drive the checks to the Seattle trustees ( many were based there ) . If you can do all that this is how you get the best deal and you see the disappointed faces at the trustee sale when the cryer announces that XYZ address has been removed from the sale. Post acquiring the asset you need not only the money to bring it current and what your going to pay the seller for equity but to make the payments with no income coming in ( unless your doing a rent back) and foreclosure rescue rent back became illegal in OR and WA around 2007 ish.. But those were the killer deals. In my experience rent backs lasted from first rent default to maybe 18 months then you were in eviction court. So you need funds to pay debt service while not getting any rent. Now multiply that by a lot of houses and you can see even sub too foreclosure rescue to do right you need minimum 100s of thousands to millions of dollars in cash to make it work.. can U do one or so sure.. but a ton of work just to capture some equity.. in our case it was either make a business out of it and do volume or just pass on it.. VERY hard work and I cant even imagine doing it would some staff.. I had a full time person following every NOD in our market and working with customer service literally daily, and I had 3 sets of two door knockers Male female there job was to set up final appointments for me to close the deal and hand over the equity check. But Hey for 5k I will gladly train anyone on how to do it LOL

A very enlightening, and (sobering!) read. Excellent post

0 Reply

Account Closed

Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes

2y

Quote from @Marcy Ramich:

Quote from @Jay Hinrichs:

Quote from @Account Closed:

Quote from @Mark Weins:

@Chris Seveney

I know 20 hours is not much, but I am using the 5000 dials as baseline data and I feel like it's enough calls to know if I am doing something wrong which seems to be the current issue with contacts.

I don't mind if it takes me 3 months or 200+ hours to get my first deal. All that matters to me is that I get it no matter how long it takes and that I am doing things properly. I also agree with you that the list I use seems to have been called multiple times by big players but i'm not sure if that's something I can change as I can only do virtual wholesaling in the US.

I guess my expectation is to have similar kpi's that I have researched online for cold calling but I just don't know why my contact rate specifically is so low, I am not connecting with the owner of the property when I am cold calling at the moment and it is killing my ability to generate leads if I cannot talk to the owners at all. The KPI for connects should be 7-10% for me it's 1% currently. My other expectation is to just have an idea of how much I need to spend on a list and what size it should be to get my first deal, I don't mind putting in 200+ hours but for me skiptracing is the most expensive part of the business and I am aiming to get my first deal in 3 months by using a list of 6000 foreclosures. This is my current budget and I want to know if a list of 6000 foreclosures would be enough to get me my first deal

I got my start with foreclosures (a sale date had been advertised). I mailed and door knocked and made my first million doing that. It was work though. Phone calling didn't net me any business.

Your comment: "This is my current budget and I want to know if a list of 6000 foreclosures would be enough to get me my first deal"

How sure are you about how current the list is?
Each state has a different way that processes foreclosures. You need to know for each state you want to work in, what the borrower's and bank's options are in what timeframe. Most are handled through loan modifications with the bank. Some are able to bring their loan current. Some sell rather than go through foreclosure. Some simply hand the keys to the bank.

Here is the secret sauce: The borrower only responds when it's within a week or two of the sale. That's right. Right up at the end. That is when the pressure is greatest.

If they are in pre-foreclosure (before the sale date has been set) they usually believe they will find a way out. Also, keep in mind, they are behind on all of their other bills as well. They are tired of getting collection phone calls so they don't pick up the phone if they don't recognize the number.

MIke your pre foreclosure work and mine are exactly the same.. We never contacted a pre forclosure until 2 weeks from the sale. It was ALL door knocking No calls no letters knock on the door. As you know this required a very particular set of skills to be successful. I think also since we worked in the same markets IE WA OR and some CA at least those were my markets. the foreclosure process allowed this type of last minute rescues to take place. There is absolutely no question someone in foreclosure is in a state of denial big time. They think something is going to happen to rescue them rich uncle sell the boat etc etc then the next thing you know its Monday and the sale is Friday thats when we would land our deals.

Those skills included being able to read title yourself. Or in my case and maybe yours title company customer service would do a verbal date down for us.. ( some risk in missing something but not a huge risk) you need cash no loans are going to work . You need to have the trustee's and who ever is handling the file on speed dial.. you need to get written permission from owner to contact their mortgage company so in person meeting is mandatory to walk them through the process. Then you need to be able to bring your cashiers check to the foreclosure trustee usually the day before the sale or make arrangements with the trustee that will allow you to hand it to the sale cryer but that can have some risks. Then you need to deal with the owners in a hold over situation because they are not going to leave in that short of time. For us being based out of PDX we have couriers that would drive the checks to the Seattle trustees ( many were based there ) . If you can do all that this is how you get the best deal and you see the disappointed faces at the trustee sale when the cryer announces that XYZ address has been removed from the sale. Post acquiring the asset you need not only the money to bring it current and what your going to pay the seller for equity but to make the payments with no income coming in ( unless your doing a rent back) and foreclosure rescue rent back became illegal in OR and WA around 2007 ish.. But those were the killer deals. In my experience rent backs lasted from first rent default to maybe 18 months then you were in eviction court. So you need funds to pay debt service while not getting any rent. Now multiply that by a lot of houses and you can see even sub too foreclosure rescue to do right you need minimum 100s of thousands to millions of dollars in cash to make it work.. can U do one or so sure.. but a ton of work just to capture some equity.. in our case it was either make a business out of it and do volume or just pass on it.. VERY hard work and I cant even imagine doing it would some staff.. I had a full time person following every NOD in our market and working with customer service literally daily, and I had 3 sets of two door knockers Male female there job was to set up final appointments for me to close the deal and hand over the equity check. But Hey for 5k I will gladly train anyone on how to do it LOL

A very enlightening, and (sobering!) read. Excellent post

I'd consider doing pre-forecloures in AZ NV OH IN TN TX but definitely not in OR WA CA SoCal San Diego LA or any place that is heavily tenant friendly. It isn't so much the expensive properties, it's that there are so many laws there to keep up with, it makes my head spin.

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5000 calls - only 1 lead?

5000 calls - only 1 lead?

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