Outsourcing my Wholesaling business.

Wholesaling
10yFollow

Outsourcing my Wholesaling business.

Trevon Peracca
Wholesaler · Chicago, IL · Member since 2015 · 245 posts · 102 votes

Hey BP

I am looking to outsource my wholesaling business. I have not been able to answer the phone much during my current direct-mail campaign, to be honest I haven't had much time at all. I work 12-18 hours per day 6-7 days per week. I have been strongly considering obtaining services such as PATLive, Podio, and a VA. I want to hear from other investors out there that utilize these services together with successful results.

I am looking for the benefits and limitations of each of these services. Please let me know if other investors have found a more automated way of running their wholesaling business.

Also, I made the mistake of not filtering by equity on my current mailing list, so I have been getting a lot of time wasting calls from people that are upside down in their mortgages. Is there a way to salvage my current list or should I just purchase a new one? I am also willing to get help from people experienced in direct mail campaigns. Please let me know any advice available.

I just want to know what works, and the budget it’s going to take, so i can sell the idea to my wife and get rolling.

Best Regards,

Trevon Peracca

2Reply
22 views

Most Popular Reply

Robert Laird
Real Estate Broker · Portland, OR · Member since 2014 · 292 posts · 114 votes
10y

Trevon,

These are all good questions.

First I would have you ask yourself what you are trying to obtain by "automating your business" as you put it. At the end of the day if you do end up paying for a service like PatLive are you really going to have the time to read through all the messages? If your as busy as you say and you can not pick up the phone in time. In addition, if it has become too hard for you to make all your call backs, a VA is not going to change that. They are just going to type out your messages and email them to you. You still have to make the call backs. You understand what I mean? Unless you find a VA that will make outbound calls for you and write offers, they will only take off work load in terms of inbound calls.

The only way I can recommend you "automate your wholesaling business" is to have a message on your answering machine that asks people to leave a message with their name, address of property they want to sell, phone number and best time to contact. Then anyone motivated enough will leave you messages and every night you check your messages and call people back for 30min - 1 hour. If you want to further automate your business, find someone to do this for you and pay them hourly. However, as you do this, your costs are going to go up, which is hard to front if you have not done a deal yet. 

In regards to your mailing list, I would not scrap it just yet. There may be a field on there that indicates equity and if you can filter them out you will still have some addresses left. Just make sure to do that with your next list purchase. In the beginning it is important to check your lists and check them twice to make sure your marketing budget will go the longest yard. Even if it takes you 2 hours to manually filter out bad addresses/recipients, that is 2 hours of saved mailer money. 

I would work up some figures and a budget. Show your significant other the hard numbers for the best case scenario and the worst case scenario. As long as your worst case scenario looks better than your financial life right now, I think she will go for it, because what is there to lose? You just have to make sure you are on the same page so no one gets surprised later on. I hope some of this will help you and good luck. 

2Reply
See this reply in the discussion

13 Replies

Jump to latestLatest
  • Robert Laird
    Real Estate Broker · Portland, OR · Member since 2014 · 292 posts · 114 votes
    10y

    Trevon,

    These are all good questions.

    First I would have you ask yourself what you are trying to obtain by "automating your business" as you put it. At the end of the day if you do end up paying for a service like PatLive are you really going to have the time to read through all the messages? If your as busy as you say and you can not pick up the phone in time. In addition, if it has become too hard for you to make all your call backs, a VA is not going to change that. They are just going to type out your messages and email them to you. You still have to make the call backs. You understand what I mean? Unless you find a VA that will make outbound calls for you and write offers, they will only take off work load in terms of inbound calls.

    The only way I can recommend you "automate your wholesaling business" is to have a message on your answering machine that asks people to leave a message with their name, address of property they want to sell, phone number and best time to contact. Then anyone motivated enough will leave you messages and every night you check your messages and call people back for 30min - 1 hour. If you want to further automate your business, find someone to do this for you and pay them hourly. However, as you do this, your costs are going to go up, which is hard to front if you have not done a deal yet. 

    In regards to your mailing list, I would not scrap it just yet. There may be a field on there that indicates equity and if you can filter them out you will still have some addresses left. Just make sure to do that with your next list purchase. In the beginning it is important to check your lists and check them twice to make sure your marketing budget will go the longest yard. Even if it takes you 2 hours to manually filter out bad addresses/recipients, that is 2 hours of saved mailer money. 

    I would work up some figures and a budget. Show your significant other the hard numbers for the best case scenario and the worst case scenario. As long as your worst case scenario looks better than your financial life right now, I think she will go for it, because what is there to lose? You just have to make sure you are on the same page so no one gets surprised later on. I hope some of this will help you and good luck. 

    2Reply
  • Jamie Nichols
    Vendor · Tallahassee, FL · Member since 2015 · 8 posts · 1 vote
    10y

    That's an interesting point of view. As real estate investors considering the value of an answering service, would you find it useful if the answering service scored your leads according to parameters set by you? This way top leads classified as an "A", for example, are easier to identify and can take first precedence over the others. 

    What do you think?

    1Reply
  • Trevon Peracca
    OP
    Wholesaler · Chicago, IL · Member since 2015 · 245 posts · 102 votes
    10y
    Originally posted by @Robert Laird:

    Trevon,

    These are all good questions.

    First I would have you ask yourself what you are trying to obtain by "automating your business" as you put it. At the end of the day if you do end up paying for a service like PatLive are you really going to have the time to read through all the messages? If your as busy as you say and you can not pick up the phone in time. In addition, if it has become too hard for you to make all your call backs, a VA is not going to change that. They are just going to type out your messages and email them to you. You still have to make the call backs. You understand what I mean? Unless you find a VA that will make outbound calls for you and write offers, they will only take off work load in terms of inbound calls.

    The only way I can recommend you "automate your wholesaling business" is to have a message on your answering machine that asks people to leave a message with their name, address of property they want to sell, phone number and best time to contact. Then anyone motivated enough will leave you messages and every night you check your messages and call people back for 30min - 1 hour. If you want to further automate your business, find someone to do this for you and pay them hourly. However, as you do this, your costs are going to go up, which is hard to front if you have not done a deal yet. 

    In regards to your mailing list, I would not scrap it just yet. There may be a field on there that indicates equity and if you can filter them out you will still have some addresses left. Just make sure to do that with your next list purchase. In the beginning it is important to check your lists and check them twice to make sure your marketing budget will go the longest yard. Even if it takes you 2 hours to manually filter out bad addresses/recipients, that is 2 hours of saved mailer money. 

    I would work up some figures and a budget. Show your significant other the hard numbers for the best case scenario and the worst case scenario. As long as your worst case scenario looks better than your financial life right now, I think she will go for it, because what is there to lose? You just have to make sure you are on the same page so no one gets surprised later on. I hope some of this will help you and good luck. 

    Thank you for your response Rob, I am just now seeing this, for whatever reason i did not get a reply notification. I will check to see if i am able to filter by equity on the excel spreadsheet i downloaded from ListSource. 

    As far as having them leave a message, I feel like it could work well, but I also feel always answering right away make can be better heres why:

    If they had no idea something like this could be done to get their home sold quick, they may really like the idea and want to explore. Like most people, when doing research they are likely to look at quite a few options. By letting it go to voicemail I run the risk of them not leaving a message at all. Maybe they leave message and start researching, and during the time that i haven't called back they wander on to someone elses website.

    If I have an answering service, I can lock in the attention of the "hot leads," by getting them started in the process by the service asking my list of questions. This will help filter out the bad leads, and allow me to have an active lead tracker with Podio. Once the prospect becomes involved in our process, i have a better chance at retaining there attention until i can call them back.

    At that point, by the time i call them back, i should already have an ARV and MAO in mind and know whether or not they qualify for my services.

    I could be COMPLETELY OFF. Please share your thoughts.

    Thanks Rob!

    Best Regards, 

    Trevon

    2Reply
  • Trevon Peracca
    OP
    Wholesaler · Chicago, IL · Member since 2015 · 245 posts · 102 votes
    10y
    Originally posted by @Jamie Nichols:

    That's an interesting point of view. As real estate investors considering the value of an answering service, would you find it useful if the answering service scored your leads according to parameters set by you? This way top leads classified as an "A", for example, are easier to identify and can take first precedence over the others. 

    What do you think?

     I think it would this would be a valuable service. I am just trying to determine whether its necessary or not for my situation.

    I take it you work for PATLive?

    1Reply
  • Jamie Nichols
    Vendor · Tallahassee, FL · Member since 2015 · 8 posts · 1 vote
    10y

    Yes, I do! We're always looking for ways we can increase our value in yellow letter marketing campaigns, lead scoring is something we could implement easily.

    0Reply
  • Trevon Peracca
    OP
    Wholesaler · Chicago, IL · Member since 2015 · 245 posts · 102 votes
    10y
    Originally posted by @Jamie Nichols:

    Yes, I do! We're always looking for ways we can increase our value in yellow letter marketing campaigns, lead scoring is something we could implement easily.

     Great! I have also heard that you work with us by inputting information into programs like Podio to help us manage our leads. Is this true?

    1Reply
  • Jamie Nichols
    Vendor · Tallahassee, FL · Member since 2015 · 8 posts · 1 vote
    10y

    We sure do!

    0Reply
  • Robert Laird
    Real Estate Broker · Portland, OR · Member since 2014 · 292 posts · 114 votes
    10y

    @Trevon Peracca

    That is a good point and follows along the same lines of the reply post I put on your other thread about Direct Mail. It is best to answer immediately, however the question is: is it in your budget to use PATLive and does it help you enough to justify the expense? In the end, the only way you will get your first deal is by making offers. 

    Rob

    1Reply
  • Dev HornPro Member
    Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
    10y

    With your hours, I don't think you have time to do real estate.  You barely have time to eat and sleep.

    In wholesaling, ALL you are doing is the relationship.  You can try to outsource that, but you're outsourcing the one value that wholesalers provide and that is generating leads & doing deals and those things involve talking to people the moment they are interested in talking to you, going as quickly as possible to see their house, and getting it under contract ASAP.  If you are not on top of all that, some other investor who is will get that deal.

    Seriously, this is not an auto-pilot business.  This is a people business.  And you have to have time to communicate with them or maybe it's just not the right time for you to do this...

    2Reply
  • Trevon Peracca
    OP
    Wholesaler · Chicago, IL · Member since 2015 · 245 posts · 102 votes
    10y
    Originally posted by @Dev Horn:

    With your hours, I don't think you have time to do real estate.  You barely have time to eat and sleep.

    In wholesaling, ALL you are doing is the relationship.  You can try to outsource that, but you're outsourcing the one value that wholesalers provide and that is generating leads & doing deals and those things involve talking to people the moment they are interested in talking to you, going as quickly as possible to see their house, and getting it under contract ASAP.  If you are not on top of all that, some other investor who is will get that deal.

    Seriously, this is not an auto-pilot business.  This is a people business.  And you have to have time to communicate with them or maybe it's just not the right time for you to do this...

     Thanks for your input. There is more to understand, but i have no intention on quitting. If i quit i have 100% chance at scoring NO DEALS. I'd rather call people back on lunch breaks, make offers over the phone, and have my buyers go look at the property once i have it under contract. I know its not as personable, and i wont get as many deals because of it, but id rather have not as many deals instead of no deals.

    Thoughts?

    0Reply
  • Dev HornPro Member
    Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
    10y

    I hear you @Trevon Peracca and completely understand.  You have to start from where are - we all do.  I didn't mean to discourage you, but I do want to challenge you - if you are going to do real estate investing - to do that personal piece, the connection with the seller the very best, most personal way that you can.

    I don't like calls going to voicemail, but some people have to do that because that's their situation. Going to a VA can be better than voicemail, but if the VA is just a data entry person that does not know real estate or your area, the caller can be frustrated by that.

    I was wondering how you would respond to my question of whether you had time for this.  What I see is you do have passion for this and you are thinking about creating a great experience for the homeowner who contacts you.  Do what you can, as you can, improve your process over time.  You can do this, and do it WELL.  I wish you the best Trevon!

    "If you really want something, work hard, take advantage of opportunities, and never, ever give up. You will find a way." ~ Jane Goodall

    1Reply
  • Trevon Peracca
    OP
    Wholesaler · Chicago, IL · Member since 2015 · 245 posts · 102 votes
    10y
    Originally posted by @Dev Horn:

    I hear you @Trevon Peracca and completely understand.  You have to start from where are - we all do.  I didn't mean to discourage you, but I do want to challenge you - if you are going to do real estate investing - to do that personal piece, the connection with the seller the very best, most personal way that you can.

    I don't like calls going to voicemail, but some people have to do that because that's their situation. Going to a VA can be better than voicemail, but if the VA is just a data entry person that does not know real estate or your area, the caller can be frustrated by that.

    I was wondering how you would respond to my question of whether you had time for this.  What I see is you do have passion for this and you are thinking about creating a great experience for the homeowner who contacts you.  Do what you can, as you can, improve your process over time.  You can do this, and do it WELL.  I wish you the best Trevon!

    "If you really want something, work hard, take advantage of opportunities, and never, ever give up. You will find a way." ~ Jane Goodall

    Dev, you seem to be a very sharp guy. I imagine id be the same way once i am in your position. Since the last time we've talked i have ran 2 direct mail campaigns. The first one did not go so well, i made a amateur mistake of not filtering my first list by equity so i was not able to work most of my first batch of leads.

    Since then I began working with Jerry Puckett who has setup a great direct mail system for me that has given be better results for a fraction of the price. He also linked me up with his friend Ryan who runs a call center with receptionists who specialize in real estate. They take my calls and set appointments for me on the spot.

    Things are going in a better direction. 

    Dev, have you developed a business model on how you scaled your business? I am interested in learning how the successful investors are scaling. I want to get an idea of how fast I can scale my business, when the right time is and the risks involved.

    If you are willing, I would love to learn anything you have to offer.

    Best Regards, 

    Trevon Peracca

    1Reply
  • Dev HornPro Member
    Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
    10y

    Hi @Trevon Peracca - good to hear from you.  And good to hear you hooked up with @Jerry Puckett - you have a real pro on your marketing now!

    For many investors, this is about a progression from wholesaling to rehab/flips to buy/hold SFRs... then some even start looking at multi-family and commercial. 

    To make the move from wholesaling to rehab/flips, you might look for partner with funds who doesn't have time to do the work but is attracted to the higher returns that they can get from real estate (compared to banks, stocks, or bonds).  Rather than "hard money lender", think "my buddy who is a Dr." or dentist, lawyer, etc. - private money.  You can get a lot better terms from a partner than from a lender.  So that's one way I've seen a lot of guys scale their business.

    The other thing I recommend is getting licensed.  I see so many listing opportunities just get tossed on the floor by investors.  At least give those to an agent partner.  Even if I can't make $ off the deal, I try to solve the seller's problem.  Pay it forward.  ;-)

    In essence, I tell people to change the way they think of themselves.  If you call yourself a wholesaler, you may never rise above that simple strategy.  Rather, think of yourself as in the very early stages of BUILDING A REAL ESTATE COMPANY.  And think of yourself more as a real estate consultant whose challenge is to solve the seller's problem in the way that's best for them.  That simple reframing of the way you define yourself can set you on a course to build something great.

    “Believe you can and you’re halfway there.” ~ Theodore Roosevelt

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free