Hey, guys, this is Haim Mamane Palman, The Virtual Wholesaler Guy and what I want to share with you this week is “What do you do to diagnose problems and fix them in your real estate wholesaling business?”
I’m three to almost four weeks into the year and I start to see trends in my business. So now it’s time to diagnose and address issues on things that work and doesn’t work. So far we made 19,000 mailers including the ones that went out today. We spent $7,400 and I can start to see the number of leads, the response rate or the cost per lead. The first week of the year was rough and I will say that that’s an outlier for now.
I can start to see that my response rate for the Absentee Owners List was one point forty-four percent (1.44%) while for the Owner Occupied High Equity List is point seventy-five percent (0.75%). So we are getting calls, we are getting appointments. You can see in the video that we have eight appointments from Owner Occupied High Equity campaign and nine appointments from Absentee Owners campaign and so far eighteen appointments for the year and that’s the concerning numbers. We have ZERO with eighteen appointments meaning that I have the conversion issue.
My acquisition guy right now is having a hard time to close deals which means that this is the main issue that I need to address right now. I’m just dying to see the week or two that we start to close deals and everything starts to turn around and the way to achieve that is for me to spend time with him on training, on the phone to make sure that he is prepared for each appointment. We are doing roleplays on negotiations and I’ve asked him to record every appointment so we can review it together and see how things are working and to deal with things that need improvement.
I am also kind of looking for other individuals to bring on the team and have them go through a training by John Martinez which is a great training and maybe to find in the intern an alternative solution to turn problems around.
My goal is by the end of March is to close five deals a month in the Memphis market and as you see things are not working at the moment but that’s fine, you just need to address this.
If you think you want to send 500 mailers and thinking you’re going to get a deal; if you will be successful doing it, then you are lucky because in 1% response rate and my average right now is 1% response rate is kind of typical for direct mail. You have only ninety-three deals for the year and again it really depends, but one deal can change everything around and the numbers will start to make sense. So I just want to share with you the Absentee Owner Campaign. We sent thirty-five to fifty-four mailers and we got 51 calls and 41 leads and we had 1.44% response rate the cost per lead is $31. So every time the phone is ringing it costs $31. We had 9 appointments, we had 0 deals so far, the conversion rate is always 0% and with every 4.5 leads, we scheduled an appointment. So every time I put my guy in front of a seller, it costs hundred forty-two dollars and right now it doesn’t look very promising. But let’s say I have one deal—one deal of $9,000 and the average is $9,000 profit and now things start to turn around with just one closing. If we were able to close just one deal, the return on investment would have been 703% and it’s important for you to see that because one deal can change everything around.
With just one deal, this campaign can change around and if the closing start to close into two deals, we would have $18,000 and now the conversion is better with leads per deal ratio that for every twenty deals, everything starts to move forward and we start rocking and rolling.
The main point of this video is to show you that not everything is roses and rainbows in this business. Sometimes you need to go through the tough time and you just need to make tweaks and focus on the things that don’t work in your business. Change your focus, and right now for me it’s the acquisition piece of the conversion.
I got the mailers out and my lead manager is screening and doing a fairly good job converting calls to appointments and we have the numbers of appointments that we need and just by getting in front of the seller and getting the contract is the hardest part especially if you’re doing it virtually. It’s not like you can take over and just tell your acquisition guy “I’m sorry. I’m taking over from now on”, luckily my guy has a good attitude and he has a will to learn and to do a good work. He wants to be successful so I’m sticking with him.
I’m looking for someone else to help me not because I have given up on him but because I think it’s a good way to run a business when you have two people for each position. So if things don’t work out you’re not stuck with just one person especially if you’re running a virtual business.
There are few options, you can call wholesale and send another wholesale and split the deals or you can have two people and divide the city to the two acquisition people going to appointments, and you will review their work and create a competition and if things don’t work with one guy then the other guy can take over.
So as a business owner it’s your responsibility to hire, train and manage the talent and this is something that I’m doing right now. It’s not fun and it’s painful because I don’t see results at the moment. I believe in a process and I also started to work with my coaching students. One guy is already getting a contract this week and he did one mailer and he sent a bunch of offers on the M.L.S. and one got accepted or in the process of getting accepted so he’s excited I’m excited and my other coaching student is in the process of selecting and markets so we are working together to select the market and put together our marketing plan and start to make offers, calls and just get the business grow.
So if you’re interested to learn, feel free to reach out to me and I’m looking for two more coaching students. I’m doing one on one until the end of March because I just launched my coaching program and I want to make sure I give it full attention to the first five to make sure that everything is working so they can see the results before doing more group coaching and they will still be having a one on one aspect for the primarily coaching. So if you want to work with someone feel free to reach out to me and I’d be happy to help out a person to run a virtual business do deals and hopefully be in a better position financially and also personally. So that’s it for now. Thanks for viewing this video and also don’t forget to share this video if you feel it can bring value to someone. Until next time! Have a great weekend.