All Forum Posts by: Account Closed

Because I have a full-time W2 job, run a wholesaleing and investing business, Husband, Dad, etc I didnt have time to repond yesterday when I got the notifications about @Charlie MacPherson and @Wayne Brooks responses.

By the time I had a chance to log in and respond @Jerryll Noorden @Lauren B. @Mario Am had already responded. I couldn't have responded much better than a combination of what those three had to say so I wont other than to say a wholesaler should not lie. I present what the properties worth to me. Most of the time it doesnt work for the seller, but 1 in around 10-20 sellers do take my offer hence my business and conversion rate.

Anyway I'm to busy living life, running my business, etc to spend anymore time on here arguing it out with anyone. We each have our own opinions and will all answer to the man / woman upstairs for our actions one day. Live by the golden rule and all will works itself out.

Peace Out.

Actually wholesaler wasn’t super far off. Let’s say the home fixed up was worth $365,000. $365,000 x .70 = $255,000. Let’s say repairs are around $5,000-$10,000 so that brings us to $240k-$245k.

That’s what a investor would need to buy it at with rule of thumb numbers.

So now we factor in the wholesaler fee. At $223k he would have made around a $20kAssignment Fee. Maybe a little high or maybe not as it's about 6-7% of the ARV.

Let me ask though How much money did the wholesaler have to spend in marketing dollars to find that lead? Why didn’t the owner reach out to a realtor instead of responding to mailer. Maybe that fees high and maybe it’s not.

Everyone wants to bash the wholesaler but then not factor in that he wouldn’t have made $121k. He would have still needed to sell it to the investor. And he spent potentially a lot of money to get that lead.

Ultimately I always tell my sellers if the house is perfect and they have all the time in the world call my realtor, list it on the mls, and get as much money as you can.

If sellers distressed for one reason or another and doesn’t want to go down that route then I step in and either buy it myself or find a buyer aka Assignment at a price that is works for me. Nothings personal just business.

Anyway just sharing my thoughts as both a fix and flip investor and a wholesaler

Not sure if she is taking on anymore clients but Cindy Cunningham is managing a few for my California Buyers that have bought properties from me. Shes listed on the www.wfar.com website so feel free to check her out. Tell her I sent you. @Hector Lewis

Direct mail has been working fairly well for me for the last few years, but I deceided to go on the offense and dive into the world of cold calling. Ironically I ran a telemarketing firm in the early 2000's and can say I'm probably better on the phones than I am in person. Anyway I digress.

I picked a random skip trace service and ran all of my 6000 leads through them to obtain landline and mobile numbers. I'm then breaking those numbers into various lists ( Absentee Owners, Owner Occupied, Tax Delinquent, etc.)

I've just finished up dialing through a list of around 150 (not very many I know). Naturally I received a lot of disconnects, wrong numbers, etc hence my question.

1. On average what % of the phone numbers are typically wrong (disconnected or wrong number) with a good skip tracing company versus a bad one?

2. What should my average connect % be meaning the phone number is correct whether the person wants to sell or not at least its the right phone number for the right person

3. What % should my lead be meaning the right phone number to the right person and they are interested in selling.

4. What are all the other metrics you use, what they mean, and the industry standard KPI's for those metrics.

Any and all help is much appreciated. DIrect mail is a lot easier but of course more expensive plus Im having to wait on the Seller to call me versus me calling them.

Thanks

@Sharon Vornholt

I’ve been meaning to message someone on here that’s been doing this longer than me. Once you buy a list do you ever stop mailing to them as long as they don’t respond with the take me off your list? I’ve got some people on my list that I’ve been mailing to for 2 years or about 10-15 times. Some people say 6-8 and then stop mailing to them. Are you saying you keep mailing to them forever and ever amen? ( showed my age with a little Randy Travis lol) just curious as my target market only has around 3000 leads. I agree that multiple touches are needed. Many of my calls have came in touch 5-7. Waiting to hear your response.

I tend to scroll through BP when I’m laying my son down but rarely post. This discussion spurred me to make a rare exception.

Wholesaleing is not illegal or at least not in Texas. I’ve closed 8 deals in 2017, 21 in 2018, and 9 so far this year. Why only 9, because I’ve graduated to the next stage and involved in 2 flips. Wholesaleing has been and always will be my baseline to find deals for whatever strategy I want to pursue ( rehabs, rentals, owner finance, etc).

On to the seller side of things. Most of these properties need a ton of work and most agents won’t touch them without a cleanup and work done to them that costs money that the seller doesn’t have. They are distressed and need someone with knowledge to help them. That’s where I come in and I am compensated well for it.

EVERY one of my sellers have said thank you when it’s all said and done with many testimonials.

Heck I can confidently say I know more about the market as a wholesaler than probably 90% of the realtors in my markets. How??? Because I talk to 20-30 sellers per month and run mls based comps and submit offers to almost all the sellers I talk to. Why would I want to settle for 3% commission with the knowledge I have and the time and energy I spend helping the seller? There is nothing wrong with getting paid well for knowledge and your time.

The key thing I will say is to know what your doing and don’t lock up the property if your not confident you have a buyer for it at the contracted price. That just gets the sellers hopes up and they come crashing down when you back out. No one deserves to be treated like that. At a minimum pay a reasonable earnest money deposit fee if you do need to back out as that’s doing the right thing which I have done on the very few properties I was unable to close on.

Anyway just my thoughts.

All great advice. BTW Im from Wichita Falls and continue to do business there and Abilene, Tx. Let me know if there’s anything I can do to help in either of those two markets.

Being out of town I may not be always be able to make them but how about y'all shoot for a Thursday morning at 7:30 a.m. or lunch at 11:30 a.m. at whatever local restaurant that has a good back room?

I don’t live there but do market and invest there. It would probably be a simple as someone just starting one and advertising it on BP. Something as simple as meeting at a local restaurant for breakfast or lunch and then adjusting the meeting place as the group grows. Just my thoughts

@Cheryl Logue @Tammy Patchin @George Genovezos

I also "operate" in Wichita Falls, TX and Abilene, TX so let me know if there is anything I can do to help as well.

Thanks

Robert