How This Wholesaler Got 3 Deals Locked Up From Under 30 Leads

In terms of ad spend, since I've been with you, I think we're just around $6.7K. Current pipeline value is at like $135,000 right now pending. So yeah, you guys could do the math on that.

What's going on guys? I have my guy Greg here. He's doing deals in El Paso and he's totally crushing it this month. So I wanted to have him on the channel for him to give us some of his experience doing wholesaling. And we are running his marketing. So we'll dive into working with the marketing and how you guys can take advantage of the market slowing down and what you must do if you want to win this next year as things slow down. But Eric, what's up, bro? Do you want to give us a quick intro?

Hey, how's it going, man? Yeah. Thanks for having me on. Yeah. Like he said, I do deals in El Paso, Texas right now. Some throughout Florida, but yeah, a little bit more about been in the real estate game for 5 years. Probably done over 100 deals, flipped like 15 houses. And so definitely deep in the game and yeah, Fidel's helped out a lot with that for sure.

Nice, bro. I don't think I ever asked you, but what made you want to kind of with the marketing?

So marketing-wise, I just wanted to be more direct to seller in general. So Before, my business model was kind of dispoing, you know, a lot of my networks, getting JV fee from them, and then kind of cherry picking, you know, the flips that I liked. So it was a combination of that, but I didn't have, you know, direct lead flow to sellers. So, you know, I wanted just to make it kind of more consistent and that kind of turned into setting up the Facebook ads.

Nice, man. And I guess, how's it going with the ads? What are you seeing? How many deals are you getting? What are you seeing as far as motivation, deal, the quality of the conversation is with these sellers? What has your experience been? And I guess also kind of just touch on if you knew anything about Facebook a few months ago before we started running them with you, and then if anything kind of was surprising to you.

Yeah. So I had a general idea about Facebook ads. In the beginning, familiar with marketing channels, but I wanted something with like a lower cost per lead. Because I know it's like the Google PPC and all those guys, they're $400 a lead. And does it really make a lot of sense once you do the numbers? Google Ads, it's been anywhere from, I think, like $50 to $80 a lead, which is a lot better. In terms of converting them, once we kind of got It dialed in on a converting like 1 in 15, I'd say maybe even, um, I know, I don't think I got more than 30 leads, but I got 3 locked up so far. But in terms of ad spend, since I've been with you, I think we're just around $6.7K pipeline values at like $135 grand right now pending. So yeah, you guys could do the math on that.

It's really good. Huge ROI. Now I'm not saying that if we work together, you guys are, but if we simplify business and we dumb it down, it's like we're trying to get people that are motivated. And then if you know how to close, like Greg, if you have a good sales process and you care for these sellers, you are going to be able to convert, have higher intent when it comes to putting out the ads and talking to people that actually have a problem, like foreclosure or like an inheritance or like a divorce, right?

So.

If those are the prominent issues that you have, our way is like, we just try to get them, uh, into our funnel and then process, convert them, which, you know, you seem to have. Um, I guess like for you, like back then, like you were running and what was your best channel back then?

So basically my only channel was just referrals. So I had a few years, like I said, so the original company I worked at pretty much Taught me the wholesales and, you know, wholesale in general under, and a lot of my buddies went out and started their own operations. So I had my existing network from there and kind of just built that out and was just selling deals for individual companies and kind of taking a split. So I really didn't have any paid marketing channel at all. And it was just strictly referrals. I mean, it worked out for a while. You know, this has been, you know, to the existing operation for sure.

Nice. Something that I've noticed is a lot of wholesalers, they think they have like a marketing issue, but in reality, a systems problem or like the foundation problem where they don't have a sales process, tracking their KPIs. You know, that was me. It took me 2 and a half years. They don't manage time properly or like managing the team. Um, what do you Like, what do you think of that? Would you agree on that? Where like people may have like shiny object syndrome and they're like, oh, let me try this new thing instead of working on the things that they know they should.

Yeah, for sure. I mean, I think, I think a big thing is focusing on one kind of a point, right? One main point. Like if you're going to flip, then flip. If you're going to wholesale, do wholesale. Um, not getting stuck in doing a lot of different things instead of just dialing down on one strategy, I think. And then other than that, I think It's just spending too much money on ads and not having a sales process to properly convert them. Um, cause I see a lot of people that can't, um, essentially float their costs until closes, you know, when they're, they don't have a sales process and they're not properly following up on the leads. And, you know, that's where I see people get in trouble. Okay, cool.

No, that's, and I know you're really good at dispo and I know a lot of people are complaining about Deals and not being able to sell them. So what do you think that you do very well in order to, you know, kind of like sell the deal? And then if you have like any tip when it comes to maybe someone has a renovation that's sitting long or, you know, getting offers for a contract that you, that you have, like, what do you think they could do in order to ensure that, you know, a deal actually gets sold, whether that is like on the sales process or your process?

Yeah, for sure. So if For selling deals, I would say number one thing is just pricing it accordingly when you're underwriting it in the first part. So whether that's you listing it and aggressively listing it on the market or just blasting it out to your existing cash buyer list. I used to send it at an exaggerated price like most wholesalers do, but 9 times out of 10, people are just going to take that and then You know, throw it in the trash or not follow up with you. So it's better to price it aggressively initially on the blast out. And then if you could do like a highest and best or something like that, then go ahead and do that. But I also say dispo process, the best cash buyer is going to be found on the open market. So all these deals I'm pretty much closing on myself just to have more control on, and then going ahead and relist it on the market because You know, there's cash buyers, there's somebody that wants a rental, you know, just value. There's first-time homebuyers, you know, so I would say definitely the open market. If you have the ability to close on it and it's just relisted, then I would definitely go ahead and do that route for sure.

Okay, nice. How are you getting the funding to do the hotels?

Yeah, so hotel funding, use a mix of hard money and private money. So private money, I'll either get them to fund the deal 100% along with the rehab and kind of just get a loan on it with the promissory note. Either that, or I'll go get a hard money lender like KeyOne. I use a lot on all my deals. So on the first position, they do like 90% rehab, and then I'll go ahead and go raise the second position down payment from You know, so that's a, that's a big thing. Otherwise, I would say I would try to have your capital kind of working towards, for you towards this aspect, kind of generating leads and doing all that thing. And if you're going to take down deals, then try to use 100%.

Yeah.

I've also gotten caught up with putting my money in a deal and it takes like 6, 8 months to sell. And you know, that doesn't help when you have, you know, overhead every month. So.

100%. Now, how aggressive are you writing when it comes to what do you want to make per deal that you wholesale? Or I guess whenever you offer your first offer to the seller, what does that look like and how much are you accounting for wholesale? And what are the main things that you look at when evaluating whether you're going to wholesale it, hotel it, or if we're doing some novation?

Gotcha. Yeah. So I guess novation, it just depends on the seller. So novation, if they kind of got a longer timeline, then I'll try I gotta hit 'em with the Novation and just list it. If it's more of a cash deal, the way I'm underwriting these is I, and buy a property nowadays and put a big rehab into it. You know, if I could say I, after renovating it fully months, I'd rather make $40K just slapping it on market, like cleaning it out, giving it a paint job within 2 or 3 months and just do more volume. So I mean, that Okay. If I acquired it at this price, what can I get for it tomorrow? Just cleaning out the property, like I said. So I essentially look at what's already closed, what's on the market. And I'm trying to undercut the current market by at least $10K.

Okay.

You know, just so we can, you know, get a lot of interest on it. So, but on a wholesale deal, really not even going to touch it unless I could, I know I'm making like $25K. $30K on it. Okay.

That's good. And then you being in El Paso, the median is less than $200K. So Eduardo was here in my market, but he's been having a lot of success with deals that they look up for like $40K, $50K, or like $75K, $80K as renovations and wholesales. So that is very well. So I feel like As long as you can be below the median house price and you do the pricing when it comes to listing it where you're below everybody else, want is to be able to sell it much quicker. And then if you do have the ability to take it down yourself, I feel like it helps you out a ton because it gives you even more confidence whenever you're talking to the sellers. And then you have the ability to just like, hey, I'm giving myself more time and I'm going to get the highest and best offer. Due to this, right? So I think that's great. Now, I guess with you, like, what is kind of like the feedback that you're getting kind of the clients that jump on the phone? Because I know we kind of changed the ads and we're asking a whole lot, like more questions with the lead. So I guess like whenever you talk to the homeowners and then, yeah, I guess like what's the overall quality and feedback on that side?

I mean, the quality has been really good. I know a lot of people in the industry. 1 in 25 you should get, you know, so I'm afraid of quality just because the leads are cheaper. Was kind of one I was a little bit nervous on initially starting, but quality-wise, I mean, they're just as good, you know, mail, whatever you want to do. They just, you know, they fill out the form. So if you hit them fast enough, they're usually ready to talk on the phone with you. I mean, of course you're going to have some sellers that are a little bit better, but it's been a pretty good experience.

Nice. Okay. So we're probably spending like, what, like $2K a month? And I would say like on average, and that's giving you what, like 2, 3 deals consistently?

Yeah, I'd say so. Not much sometimes. I mean, I've been traveling a lot over the summer, but these last couple months I've got, yeah, 2 or 3 for sure.

Nice.

Yeah.

So getting deals for like $1,000 and size is at least 20. So it's not a big revenue. It's just like about the business that makes sense for you. And I, like I said, I see you training and that you were Japan, all these things. And I feel it's great. So this is kind of like the power of having a good strategic approach where you're able to get good quality leads. You focus on the sales process and dispo. Yeah, it takes more of your time, but get to keep. a bunch more money and, you know what I mean, like overly risky, like I have been, or a lot of people that we know in common where we've lost hundreds of thousands of dollars, like, you know, bad deals. It's like, okay, like in the end is how much can we kind of building a business that makes sense, you know, to you. Right. So I don't know what, what is your experience with me and the team? How are you liking kind of like everything like on, on, on our side as far as like the marketing?

Yeah. I mean, you guys are on it in terms of helping with the marketing side. I mean, initially, like they give you a big packet to go through that teaches you everything like A to Z. Um, there's weekly calls for us to hop on. We help and they kind of go through your ad account if you have any questions on it. And then there's a Slack channel that we have, uh, with all the team members and they hit you up if you have any questions and super fun. And yeah, so I have no qualms about you guys, you know.

Oh, oh.

At all.

Sometimes I need to follow up a little bit intensely with you and be like, hey bro, what's going on here?

Yeah. I'm like, hey guys, I actually got one signed.

Good stuff. I guess like for you, like what's like, what's next? Like, is there any big goal that you are, you know, planning to go towards or would you say you're pretty happy kind of where things are at?

Well, yeah, in terms of goals, I mean, I want to scale probably to 80, 100 a month. Um, so been around 30 initially and lately 70. Um, so I think we could get to 100 and kind of just scale up. Um, and just so it's a little bit more each month, maybe add a market and then yeah, keep it like that.

Nice, man.

Pretty, uh, yeah, Mangle, I think I could add another 200 bytes year end. Like that might be realistic. So I like that.

Good quality leads, good sales process, closing deals, man. I guess if anyone was looking to join us and us on marketing, I mean, what would, what would you tell them?

I mean, I would definitely make the investment, you know, I was definitely afraid at first in terms of that, but I mean, just on the numbers I gave you guys, I've made over, I've already Invested starting with Fidel. So rate of the copy, I mean, it's a real thing. It's not just foo-foo numbers that he's given you. So like you said, if you could close the leads, then it'll definitely make sense for you.

Yep. And if you need help with the sales, like, well, like I said, you may have like, you have a marketing problem, which yeah, what we do, how we do the marketing, you know, it's really good. But for you to get the best results, sales process to be aligned. KPI to be aligned, because if not, we don't know what's working. And then what we're trying to do is something that's replicable and consistent. So you've done a really good job, bro. So really happy to have you on, and I'd love to see you crushing. Anything, any last words you want to tell the viewers? How can they reach out to you if they have deals in El Paso? Are you buying? Can you just let us know they can reach you?

Yeah, you could reach me at fosre@gmail.com. Just email with your deal. Um, or go ahead and find me on Instagram, uh, on _gregfoster. But, um, yeah, I would love to hear from you guys. Like I said, don't be afraid to sign up with Fidel and the gang. I mean, that's for sure. Um, and, you know, but I appreciate you having me on.

Thank you, bro.

Let's crush.

And we'll be on in a few months and we'll keep, keep you guys updated once we hit that.

Yeah, for sure. Well, we already had it if we didn't have some titles. But yeah, it happens, bro. Next month. Next month. Yeah.

Hell yeah, bro. Well, thank you so much. We'll catch you guys next time.

Peace.