Wholesaling Houses and Managing the Deal Pipeline

Hey hope you are enjoying a great June. I am currently in the great sunshine state of FL. I have been hear for about a week and will be hear for another week as well. Normally my wife and I go on a cruise because this is our anniversary week. I love cruises. They are the best! I think it is the closest thing that you can get to being treated like royalty! This year we decided it against it because of our 7 month old baby. He is great but probably would not do to well on a cruise.

Ok down to business. If you are wondering what is going on my with my wholesaling business while I have been away for most of the month, I will clear that up for you. I have been working on several deals that have been in the pipe line for the last couple of months. I have also just sent out a mailer of about 6,000 and that should be hitting any time now.

The point is that while I am out of town my marketing to motivated sellers continues to go out and my virtual assistant continues to answer the calls. He sends me an email at the end of the day with the amount of calls he made and how many leads he was able to gather. I then decide who I want to talk to and pursue further.

One thing that you have to understand about wholesaling houses is that there is a pipeline involved. What is a pipeline you ask? In any type of sales related business you will have a pipeline. Basically a pipeline is a figurative term for deals in waiting or deals that you are working on. You can be the best negotiator in the world but not every seller is going to accept your first offer. It may be as well that you will not even be able to make an offer on a property right away for whatever reason. If this is the case, you need to follow up with them until you can make an offer or you get deal.

The key to building up to multiple deals in a month is managing your pipeline. The more deals you have in a pipeline the better chances you will have a big month. I am working on trying to figure how many leads or deals somebody would have to have to manage a 100K month. Once I figure that out I will let you know. I had a 50K month but I am not sure what it would take for a 100K month.

I wanted to give you a quick idea of deals that I working on right now and where they are in the pipeline.

Wakefield Property– This deal I have been working on for several months. I have it under contract and actually had a buyer at one time that chickened out (If you are a buyer and you do decide to chicken out on a deal please don’t just not return somebody’s phone calls and be a man and just be gosh darn honest). Ok sorry about that I don’t have much respect for people who don’t return phone calls.

Ok, like I said I have been working on it for several months and I have the property under contract for 30K and have a buyer considering it for 37K. Should know by the end of the week weather they will buy it our not. On this deal hear I have already give the seller the idea that I will be asking for a 5K reduction from the results of my inspection. This technique can actually turn a non deal into a deal or make you an extra 5-10K on a deal.

41st St Property– This property been working on for a month or so and the seller is entertaining my offer and is supposed to be getting back with me in the next day or so (One thing I have learned that when you are following up with people you don’t want to hound them, it could blow the deal for you. There is a special line between good follow up and just being a pain in the butt! ) I have a buyer that is interested in the property if I can get it for 60K he would gladly buy it for 65K. Notice that I do not have it under contract but I have notified one of my VIP buyers about it to get an idea off where I need to be to make it work.

Telstar property-This house has been a pain for the last couple of months. I think my mistake was that I jumped at the seller’s first asking price. The house is worth 150K and she told me 55K. This is an out of town or absentee owner and for whatever reason does not want to do “business” over the phone so I am waiting to see when she will be able to come down. I already have somebody interested at 75K so that will be a nice deal if it goes through.

Argonne Property- This property the seller is asking a fairly reasonable price for it. I do not have it under contract but he is asking 60K and I know it is worth at least 140K or so fixed up. The problem is that it is currently with a property management property. I guess I should just put it under contract and try to get a buyer or two into the property. The property management company complicates things but it can still be done.

Charlton Property- This is a property that should be closing this month.

Hosier Property- This is a property that have been working on for several months but should be closing this month.

Parker Ave Property- This property is interesting because I offered so little on the property like 17-18K but it is in a questionable area. The seller is interested in it and is willing to negotiate so I am waiting to hear back from her. I will probably put a follow up phone call to her today.

I currently have a lot more leads that I am working on that are in the pipeline but these are the main ones. Hopefully this helps you get an idea on what it type of volume you need to make some money wholesaling houses.

The key is before you can start working this many deals you need to have a steady source of leads coming to you every single month. I anticipate from the 6,000 postcards that I just sent out that I will at least get 250-300 leads to work on.

So go get some marketing out there and start getting some leads coming in!

If you have any questions or comments please let me know!

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  • Aaron

    What do you do when you can’t find a buyer before the settlement date specified in the contract? And what do you tell the seller? I

  • Alex

    Hey Aaron the best thing to do is on the front end. Make sure that you have an inspection clause on the front end that allows you 15 days to get your funding partners through the property. If it doesnt work out there is a mutual understanding that you can walk from the deal.

  • Aaron

    Thanks for the help Alex. I really appreciate it.