Fresno, CA · Member since 2016 · 33 posts · 6 votes
Today I just sent out 100 mailers to absentee owners. Now that I have about a week before calls come in, I'm a little confused as to how the rest goes. I have an app in podio where I am supposed to input new leads and it screens the caller. If I am near my laptop when I get a call, my plan is to answer the call and start inputing their information into the app and asking them questions about the property. Now I feel like I really won't be able to know if it's a possible deal or not until I get off the phone and run some comps on the property. So here's my main question: is the main goal to schedule an appointment to see the property even when I don't yet know if it is a possible deal or not? Or do I need to make a quick decision during the call whether or not the property is even worth viewing. I tend to overthink things but knowing this will ease my mind.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Nathan Schoenborn well I don't need to listen to any pod cast RE is most defiantly a belly to belly business at the end of the day.. at least in my 42 years at flailing at it. But it really astounds me that folks would just send post cards out spend that money as little as it is.. and really not have a clue what to do next.
I think they should spend money learning the craft first then spend money on marketing the chance that this person will land a deal is remote.. unless they get the proverbial fell off the pumpkin truck.
what ever happened to apprenticing.. this is why the mortality rate for wholesaling is about 97%... totally got it *** backwards..
Milwaukee, WI · Member since 2012 · 32 posts · 4 votes
10y
That's a good question. I'm in the same boat. I just sent out postcard yesterday and never thought that. I'm in Milwaukee and new to wholesaling and that's just something I didn't think about.
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
10y
Get familiar with the neighborhoods and what price ranges houses typically go for if they are a foreclosure or retail. Then you'll have some starting points to work with. If someone wants retail for their house, usually they're asking too much (or they'd just list with a realtor).
Investor · Miami, FL · Member since 2015 · 379 posts · 330 votes
10y
The technique I've read and heard repeated by many is to find the ARV in their neighborhood and offer 70% of that. If they can stay somewhere close to that range then agree to go and see their house personally.
At that point check for roofing, code restrictions etc and sometimes the house might be in such good condition that you can offer them a little more than what you agreed upon and leave with a happy client. Also make sure they spread the word of your business for being so honest about the value of their house.
If the case is that there is a big repair that needs to be done, hopefully that 70% estimate covers for it as well as your cut and the prospective investors cut. I personally will point out the issue and tell them I will have to take lower than what I offered you roguishly because of these issues.
Hope other more experienced wholesalers chime in with some more ideas
Self Employed · Milwaukee, WI · Member since 2015 · 135 posts · 45 votes
10y
I just listened to podcast 164 and he kept saying real estate is a"people business". I would definitely take the first call to listen to the owner, hear their issues, and gather only basic information and ask if it's okay to call them back in a few days. This will set you apart from the usual sharks. One of my mentors always told me, "establish rapport".You don't want to come off as greedy or cold in the first call. Then you can do your research and maybe talk business on the next call. If they trust you, you have a better chance at getting the deal.
Fresno, CA · Member since 2016 · 33 posts · 6 votes
10y
@Nathan Schoenborn Yeah you're definitely right about that. I am going to do that because I don't want to schedule an appointment no matter what just to cancel on them and hurt my reputation. Telling them that I'll call them in the next day or two works out better for everyone and allows me to gather my numbers and find out where I need to be. Because if I'm on the phone and trying to find the ARV and figure all these things out then I'm not listening to the seller.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Nathan Schoenborn well I don't need to listen to any pod cast RE is most defiantly a belly to belly business at the end of the day.. at least in my 42 years at flailing at it. But it really astounds me that folks would just send post cards out spend that money as little as it is.. and really not have a clue what to do next.
I think they should spend money learning the craft first then spend money on marketing the chance that this person will land a deal is remote.. unless they get the proverbial fell off the pumpkin truck.
what ever happened to apprenticing.. this is why the mortality rate for wholesaling is about 97%... totally got it *** backwards..
Fresno, CA · Member since 2016 · 33 posts · 6 votes
10y
@Jay Hinrichs You are right in a way. But heres my thing, a lot of people end up spinning their wheels and not getting anywhere because they are stuck learning as much as they can but not taking any action. You never can really learn anyways until you get out there and start learning through trial and error. A lot of other RE investors also say that the most important thing you can do is get your phone ringing and then learn from there. So I'm going to jump into this thing and any obstacle that gets in my way, I'm simply going to find a way around it rather than spending a ton of time reading and not getting anywhere trying to avoid the obstacle.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Chase Hancock reading Is not how you learn to do sales..
wholesaling is SALES and Marketing that's what it is.. you will not learn how to do that on BP
you will learn that In live interaction with professional sales type folks..
I get 5 to 10 cards or letters a week.. because we buy real estate all over the country for cash. So we are on the direct mail lists.
I will call a few a month.. and its evident they don't know the industry or what the are even talking about.. its great they took the time and spent the money but no clue how to do as you asked.. IE what do I do next
so my suggestion is get some sales training.. spend money there learn how to qualify present and close.. Selling cars will help you. there are tried and true ways to how sales work and the top sales folks will kill it..
Now I just went and test drove a Tesla today and going to buy one.. now they are not traditional care sales folks but they have their methodology that is well trained and well presented.. the salesmen just did not wake up one day and come to the office and say hey the company is sending me leads what do I do.. NO he or she went to sales training class's..
So your trying to buy 100k properties I am buying a 100k car.. and the salesmen is selling me a 100k car. and I assume he is making a commission.. but not the normal care sales routine but very professional and polished.. so that's what I am saying get professional and get poslished know what the heck your doing then send out your mailers and close the heck out of them and make a bunch of money.
Fresno, CA · Member since 2016 · 33 posts · 6 votes
10y
@Jay Hinrichs That is a skill that I will learn as I go. Someone who got their first job at a car dealership most likely knew nothing about sales but learned in the process. I work in a restaraunt and we have to sell specials. I was terrible in the beginning but 3 years later i'm the best one they have. No one gave me training, I learned through trial and error. Plus REI is my life dream and there is nothing else i'd rather do. I know if i give it my all and never give up then i will succeed. Getting a job at a car dealership to learn sales is not an option for me. I am open to an online course or a good book on sales to sharpen my skill.
I got my RE license at 18.. my first job was selling Fuller Brush door to door at 14.. I never looked back. But I owe it all to round tables in our sales meetings with grizzled pros.. granted I learned some stuff that suited my personality .. but there was objection handling techniques that you just can't learn form a book or trial and error Experts have to teach those to you.
Just trying to help you..
My business is helping young RE entraprenours my youngest is 22 my oldest is 40.. So its my mission to help them succeed.. I use BP as a sort of charity give back....
So take it for what its worth and again I wish you the very best.
Specialist · Salt Lake City, UT · Member since 2015 · 533 posts · 378 votes
10y
@Chase Hancock@Devon Curney I applaud you both for taking action! You are right that many will never get into the game because they want to understand every little detail! However, @Jay Hinrichs is right also! There are so many wholesalers out there right now not having a clue what they are doing. This can put you in a very dangerous situation. The Division of Real Estate in many markets is coming down hard on wholesalers that are not following the rules. You need to be knowledgeable about what you are doing so you don't find yourself out of business before you ever get started.
Let me give you a couple of suggestions:
1. When the phone starts ringing you should be prescreening the seller. I have a seller intake form I use that I would be happy to share with you if you pm me. Depending on what you are trying to structure you need certain info from the seller - address, email, phone, property description, condition, what the seller thinks the property is worth, what they want, what they owe, payment, etc. Without that info I am not sure how you will structure a deal. Rapport is crucial and you will definitely ask some questions to develop rapport and to get at what the situation really is. You are looking for motivation and it is not always just thrown out there. Sometimes (many) you have to dig for it.
2. Tell the seller you will do some research and call them back tomorrow. Set up a time to get back to them and follow through and do what you say you will do. Trust is important in this industry. Run your comps and decide whether it will be worthwhile to go out and inspect the property. I personally only set an appointment if they basically told me they are so motivated that they are going to sell their house to the first person that makes a realistic offer to them. If you have no idea what they want for the property then I am not sure how you will know whether to go to the house. I usually put together a three or four option letter of intent and email it to them within 48 hours. I make an offer on about 98% of all the leads I talk to. I then follow up in a few days and see which option interests them the most. I do most or all the negotiating over the phone and may not even go to the property until I have a signed agreement or we have reached some stalemate but we are close.
3. Whether you are a wholesaler, fix and flip, buy and hold or any other type of investor there is a lot to learn. I suggest you try not to learn and implement everything right away. Focus on getting good at generating leads and prescreening sellers. If you are good at this you will make money in this business. Start going to your local REIA or Meetups in your area and find experienced investors you can team up with. Offer to bring them prescreened leads for splitting half the profits for them negotiating the deal, putting together the paperwork, earnest money, finding the buyer and getting the deal closed. You may want to establish a few relationships with investors so you know who to bring what deal to. After you do some and are apart of the process you will be in a much better situation to do this on your own.
4. I always tell new investors to focus on one thing and become great at it! There really are only three things to do: find the deals, find the buyers or find the money. Money may require a license so most focus on the first two.
Real estate has changed in many markets and cooperation has become much more acceptable. I work with new investors in a number of ways. One way is I give them a way to generate leads and teach them how to prescreen sellers. The leads come to me and I do the rest. Once the property is closed they are paid a portion of the profits. In addition, I teach them how to become real estate investors. I can tell you that you definitely will have investors in your area that will work with you if you bring them qualified leads. Learn from the people that are already successful!
Edison, NJ · Member since 2016 · 68 posts · 28 votes
10y
Well, if u want my honest opinion and yes im new to wholesaling but if u ask season investors they will tell you 100 mailers isnt enough. Say u get anywhere from 1-3% response rate, thats only 1-3 calls. Of that, ur probably not going to get a deal. Hey u may but i think its pretty low of odds. What i would do is go out and send out 900 more letters. If u can't afford it, i would start hand writing them. Only problem will be cost of stamps but hey, FYI for everyone, April 10 stamps are going down to 47 cents!
Then u said what next? get as much learning as you can within the top frame but also, what i would do and i suggest this. IDK how good you are on talking on the phone but if u dont feel good about it, go call some FSBO and practice talking to them and finding motivation. Heck you may even find a deal out of it.
The Worst thing to do is sit around and waiting for the mailers to hit. Remember, no one is better than you, and like @Jay Hinrichs said Its Marketing! So remember its all about numbers, just keep mailing and don't give up and you will get a deal.
And always remember..... You're Never Out Of The Fight.
PS: Off topic how do u highlight peoples names in blue xD
Fresno, CA · Member since 2016 · 33 posts · 6 votes
10y
Thank you @Jeff Rappaport that was some really good information. Like @Jay Hinrichs was saying about sales and marketing, what do you recommend that I can do to gain some extra sales experience on the side? I used to do a lot of cold calls from a freight broking job so I have some sales experience. But not a ton. My plan is to get one deal, then with the money from that deal, I can scale it and put it all into marketing generating more leads.
Thanks @Ryan Spinola I think I am going to call some FSBO's. I want any experience I can get.
Fresno, CA · Member since 2016 · 33 posts · 6 votes
10y
@Ryan Spinola i just type the "@" symbol and then the first three letters of someones name and it should pop up and just click that and it puts it in there for you
Edison, NJ · Member since 2016 · 68 posts · 28 votes
10y
You can also do bandit signs to get leads, seo with youtube, like i said before call fsbo. Do whatever it takes to get that first deal because once u do, u "know it works" then scale it. Im focusing on direct mail and once i figure out how i want it set up, im going to scale it so big
Fresno, CA · Member since 2016 · 33 posts · 6 votes
10y
@Ryan Spinola exactly. I'm just chasing that first check, that first deal and once I get it, it's game on. I know this can work it's just a matter of learning from mistakes and correcting yourself. Like you said it really is a numbers game. Since i'm so young with little capital, I'm just putting up bandit signs and doing direct mail. I know 100 a month isnt a lot but all i need is one deal to kickstart it. Plus i'm still learning and taking things on the slower side
Edison, NJ · Member since 2016 · 68 posts · 28 votes
10y
@Chase Hancock Well, i started "officially" wholesaling almost 3 weeks ago. I dropped, about almost 1,000 letters. I have a limited budget so i started hand writing letters. (i wrote 500 of the 1k, i paid someone else to do it) I just found a motivated seller, looked at the property and about to lock it up. Guess what? if i had to do it over, i would 100%. It does suck i have to tell you but in the end, its worth it. Also when i was answering the phone for the first time, i messed up but what i learned is. Who cares, like are your really going to talk or see them ever in ur life again. Nope and u can't screw up with a motivated seller. I would try to do more letters tbh, or atleast 250 a week. U just need that phone to ring. And from the first 265 letters i dropped, i got almost 32 calls. I think thats pretty good. But my 2nd letter drop was crap, i got 1 and 3rd one is hitting this week.
Fresno, CA · Member since 2016 · 33 posts · 6 votes
10y
@Ryan Spinola what target audience have you had the most success with so far? Yeah I bought a list of 1,000+. I'll probably send out another 200 this week. Since you've already been there and done that, are there any tips you can throw my way when i'm talking over the phone with a seller?
Edison, NJ · Member since 2016 · 68 posts · 28 votes
10y
High equity, absentee owners out of state. Use questions to control conversations. Just don't go into "so how many bedrooms". Talk to them as your talking to a someone you know. If they want to do business, they do it with people they like. I bet u half of the BP investors who know what they are doing probably could go on an appointment to the house where someone who doesn't build rapport and they will get the contract because they treat them as a person, not a deal.
I start like this, "Hi is this "Mike"
"This is Mike, whos speaking?"
"This is Ryan, i got your voicemail regarding your house @ so and so address. Am i catching you at a good time?"
"Yea i can talk or w/e they say they have time to speak"
"Great, how are you doing today?" (treating them as a person, but im not doing it fake either)
"Im doing good, how about you?"
"Im not doing too bad, whats the situation with the house?" or "How can i help you?"
If they go off like "how did u get my information, or something along those lines?"
(Now they are trying to control the conversation, you answer their question and fire back another question. You control the conversation with questions. If they take control, game over)
"I got it from public records" or "i got it from tax records" then i say "Can you tell me alittle about the property" Im basicly asking a question just like "whats the situtation" but i formed it differently to find out about whats going out with the property and looking for motivation. Again do not lose control of the conversation. If u get trip up on something, just ask a question to get the conversation back into control so you can reset your focus while they are talking. Also make sure your really listen... if u don't game over and do not interupt them. Let them talk. People want to be listened to.
Obviously u don't want to read from a script, be yourself but thats just a guideline of my introduction. Also you want to ask motivation questions like "Why are u looking to sell? "How fast are you looking to sell?" etc etc. Don't be scared to form them differently.
U should read How to master the art of selling by tom hopkins. its like 2 dollars or something. Best sales book out there. Remember this is alot of marketing but also about talking to people.
Fresno, CA · Member since 2016 · 33 posts · 6 votes
10y
@Ryan Spinola Thanks that really helps. Yeah back when I used to cold call for another business, I learned how important it is to be yourself and talk to them like a human being and not like a robot reading from a script. I definitely will check out the book! Also when dealing with out of state owners, how does that work? Are you able to schedule an appointment if they are out of state? How about when it comes time to close, do they drive to the city of the subject property?
Edison, NJ · Member since 2016 · 68 posts · 28 votes
10y
@Chase Hancock Yea, if they a tenant, they will schedule a way for you to see the property. I send them the contract thru email/fax/mail. Obviously try to do email or fax, its faster but some older people want regular mail so then you have to wait a few days and when it comes time to close. They just have to get the documents signed same way
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
10y
Ideally you will get to a point where you will have the MLS open while taking the call . You should be able to determine then and there if it is a good deal. Initially , the learning curve will take some time. Expect 1-3 calls from that mailer of 100.
