Hey guys, so I've been making my attempt at Wholesaleing using bandit signs all around my town. For the last month every Friday night I put out fifteen signs that say we buy houses, any condition any situation, and my phone number. I have gotten no good results and am inquiring as to if anyone has any ideas on what I may be doing wrong... Every person that calls me wants retail prices for their house, or has basically trash houses that I wouldn't pay a dollar for... Do I need a website? Do I need my signs to say something different? I just can't figure out why I haven't gotten one call from a person who is motivated to sell and will give me a good deal.
@Chad Johnson If it were that easy, everyone would be doing it. Bandit signs is just one marketing channel. I would suggest to increase your channels to reach a larger number of people. Do direct market campaigns, online marketing, phone calls, and whatever else you think will reach motivated sellers. REI is a numbers game, so the more people that you reach, the higher your chance of success will be.
Also, you said that you've come across "trash houses". Take a look at these houses, figure out what the ARV is, what the repair cost will be and make an offer. If you buy it right, I'm sure there are flippers in your area that would be interested.
Stay consistent and keep pushing through.
Congrats on taking action! You are ahead of the game. First of all I don't suggest using only one marketing strategy. There are a ton of other ways to market. Also 15 is a relatively small number...you should be around 40-50 especially if that is all you are doing. Remember you are looking for the select few. The majority of calls any investor gets are from sellers who are just looking to see how much they can get for their property. You have to talk with a lot of "tire kickers" to get to the right sellers. Best of luck!
Sounds about right. Keep at it. You're getting calls..
@Chad Johnson...I am much newer to REI than you...In fact I practically know nothing. But I do have one question - If you can buy a "trash house" at 1.00 and sell it for 2.00 why is that a bad investment?
When I say trash I mean shantys that would require more money to be put in than they would be worth after all is said and done.
I believe it takes a new investor on average 6 months to get their first deal. most marketers will estimate it takes about 100 leads to get 1 deal.
My guess is you are not doing anything wrong you have just not done it long enough and consistently enough. I also agree completely with the comments about more than one source of leads.
One of the best quotes I have heard about marketing is
Everything works somewhere nothing works everywhere.
You need to find what works for you.
Here is the secret that you're looking for: Don't stop. The ones who stop are the ones who fail. The ones who succeed are the ones who don't stop.
I do think real estate investment is unfortunately often sold as a get rich quick scheme or something that is relatively easy. I think that BiggerPockets has done a lot to inject a good dose of reality into the situation, but there's still a lot of hype out there that can filter in to even the most down-to-earth newbie. Real estate investment is hard. It's the ultimate get rich slow method. I have a friend who owns or co-owns almost 2000 units now, and he didn't buy a thing for the first 6 months he was in the game. So expand your marketing and networking, keep educating yourself, but most importantly, be patient.
I've been wholesaling for a little over a year and I can totally sympathize with what your are experiencing. I've noticed a lot of times that there can be a considerable lag between advertising and the feedback you get from said advertising. Also, be prepared to talk to a lot of time wasters. The average person wants retail or above for their property so you'll have to sift through the masses to find the needle in the haystack.
Best of luck!
Congrats! You're one month closer to success!
I've been considering having a website built that would allow people to input their home information, along with pictures and all necessary information to allow me to make a quick offer over the Internet and use search engine optimization to direct traffic.. Any feedback on whether or not this is a good idea? I also flip cars as my primary source of income, so I figured it could e a website where people could sell me their cars or their homes..
It takes a high level od dedication, commitment and resiliency to even continue in the wholesale business. This business is simple, but not easy. Great marketing drives leads and sales..
There is no gurantee that you will see a return on your marketing dollars. However, you must market in order to generate leads.
I'll echo what others have said on here, be sure to diversify your marketing efforts. Have a website. Cold call realtors. Send mailings. Knock on doors. Hang flyers around town. Hanging bandit signs does not constitute a marketing campaign. Also, it took me 16 months to find my first deal (and I've since found 3 more in 3 months) so do not give up.
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