How Many Leads to Get to ONE DEAL?
Question of the Day for fellow RE Investors out there.... How many leads does it take to get to ONE DEAL? I have heard 30 leads to one deal. / I have also heard 10 highly targeted leads to one deal. Curious on your findings? Please Share
Im curious as well, Im receiving leads at the moment, doing some CMA's and due diligence, hope to close soon!
Good Luck Darcy! .... Happy Investing
I agree that if the leads are highly targeted, such as yellow letters, probates, etc..its 1 out of 10 leads
Michelle,
Thanks for the response, I have a 200 yellow letter campaign going out this week, and if all goes well there will be 800 to follow the following week. I have found Bandit Signs if consistently put out will get some great action as well. Just have to keep the marketing going at all times.... :)Happy Investing
Hit me up when you get one under. I want to help sell! ;-)
-
Real Estate Agent Florida (#BK3399275)
- L & E Property Holdings Inc
I sure will Jimbo, I'm working the Volusia market for now. Searching for Gold and Diamonds near the Florida's East Coast :)
I've sent out 60 yellow letters and got three missed calls. We left a message on two, but the other's inbox was full. I would love it if it were 1 in 10 or even 1 in 30. Because so far it's 0 in 60 and I'm starting to get discouraged.
All we've done are yellow letters because I'm still trying to find where I can post flyers/signs/hand out business cards legally.
The average is around 25/1. The average usually gets better as your skills get better ie negotiations, people skills and marketing techniques.
I assume you mean leads in getting sellers.
It all has to do with the correct approach, timing and the right marketing material.
It is a matter of trial and error - my goals is 5% or better of whatever form of marketing I use.
If I send 100 letters out for preforeclosure leads, I expect to get at least 5% responce (and I do), but it took some revising, trial and errors.
I know 5% seem ambitious to a lot of marketers, but pushing to the top is what will make you survive in the business (and it works.)
Laura,
Thanks for the response yes I was referring to sellers. Sorry I should have been more specific. Laura with the Preforeclosures are you marketing for SS?
Robert this can vary it also depends on the type of marketing your doing. Online or off line. For instance you could easily find a great deal on Craigslist that another Wholesaler has to partner up on or buy if the don't have a buyer. Every market place is different in Baltimore every 5 to 8 leads that come in are doable weather a wholesale, sub-2 or short sale. One thing you have to factor in is we have over 40K vacant houses here.
Marcel,
Appreciate the response / side note was great meeting and hearing you speak at the Kenny Rushing event. Well sounds like you have Baltimore on lock. Great numbers 5-8 leads to a deal! WOW.... In regards to the CL answer, I am all for teaming up with others and sharing in the profits :)
Happy Investing
Please excuse my ignorance, but what do people mean when they say "lead"?
For example, I've been driving around looking for vacant properties. Is each house I find a lead? Or is it not a lead until the owner responds to a marketing letter?
Likewise, in the preforeclosure market, is an address a lead, or is it not until the homeowner responds?
Thanks.
Roy,
Sorry for being vauge It is all subjective what people call leads. I am referring to some contact with the homeowner ... you send a letter they respond then you have contact or a "lead". If I send a 1000 letters and 100 respond then my response rate is 10% and I have 100 leads... Now that is not saying they will all be deals so then it comes down to what's a "hot lead" / "warm lead" / or a "dead lead" ..... My goal is to close 1 out of 10 leads.... I would be a 10% closer but in this business that could be a FAT PAYCHECK....:) Hope that answered your question.
Happy Investing
vague ...... sorry spell check ;)
I'm quite confident nobody on here does more direct marketing for seller leads than me. My number for last year was 24.61 leads per deal. This takes into consideration all methods of marketing campaigns. However, that does not mean you will get 1 deal for every 25 leads that come in. It really depends on your negotiation skills and what your offering.
On a side note; it took me 215.33 marketing pieces to get 1 lead. Each lead cost me $78. Average profit per deal was $11,558.25.
Thanks Robert, that did indeed answer my question.
Alas, it wasn't the answer I wanted. I've got about 30 vacant addresses, and was hoping the 30-1 meant I most likely had a deal in there somewhere.
I'm also curious how many 'mailings/cold calls' go out for 1 'closed deal'. Mailings - Leads - Deal ratios people see in the midwest.
20,000 post cards a month
From this I get approximately 150 calls (25 leads per contract)
I will get 6 contracts (60% will close)
3-4 deals closed
Average deal $13,211