I Made The Cheapest Lead System in Real Estate History ($35 inbound Leads)

If you are buying leads or relying on agencies for your lead gen, this video is going to piss you off because I'm going to show you why you're overpaying for your leads, and I'm going to show you how I flip the script and how we are closing $200,000 per month and spending less than $10,000 in our marketing by bringing it in-house. We'll close over $220,000 this month in a real estate wholesaling company, and in this video I want to be going over how we get leads less than $40 while everyone else is paying $300, $400, $500 per lead. And I'm going to show you how we cut out our cost per lead by more than 70%, how we build trust before the call, and how we close anywhere from 6 to 10 deals per month using Facebook ads. So if you don't know me, my name is Fidel. I've been in real estate for more than 3 years, have made millions of dollars in my wholesaling business. I've hired every mentor, have paid for every course. So in this video, I'm going to be going over the best ways to use Facebook ads and why you should implement this into your business. So if you are a wholesaler who's making more than $20,000 per month, you want to implement this into your business, I want to talk to you. So follow me on Instagram and subscribe to the channel because I'm going to be sharing more content on the best ways to wholesale moving forward. So with that being said, you know, these are some of the closing— closings we've had this month, and it's not updated as of June 30th. And then this week we closed an additional $30,000, and for July we have over $100,000 pending. And then we are— we're adding more stuff to the board. So with that being said, let's get started. I'm gonna be going over why your agencies are stealing money from you and the industry standards when it comes to the other inbound channels and why I prefer Facebook and how we do Facebook and the best ways to go about doing Facebook ads. So with that being said, let's expose the industry problem, right? So if you are a wholesaler and you're using paper leads, your cost per lead is gonna be anywhere from the $150 to $300 per lead, right? For PPC, which is Google PPC, it'll be more expensive. They're a little bit more qualified, but it's more expensive. You're looking at $300 to $400 to $500 cost per lead. But a lot of the times you have no trust before the sale. Unless they Googled you and you have some good reviews, right? Um, and then the other thing is that you are dependent on agencies or middlemen to resell you these leads. So you never have full control. Now, if we take a look into the industry standards of what it takes to close one contract, so PPC is the hottest. So anywhere from 10 to 20 leads are going to get you one contract. And if you do the math, if you are spending 300 to 500 per lead, your cost per deal can be anywhere from 3 to 5 grand, 6 grand, 7 grand, depending on the market. On PPL, you need a little bit more leads because there's no filtering on what these agencies are putting out as far as the ads. So you don't really know what they are running, right? So the conversion is a little bit higher than PPC. right? You need a little bit more leads to get a deal. So what we're seeing is anywhere from 20 to 40 leads to one contract. And then if you do the math based on the average cost per lead, you're looking at anywhere around $4,000 to $8,000 cost per contract to get a deal from the pay-per-lead channel. Now, if you're doing calling or texting, it's gonna be higher, just because these people have been called before and they're usually like, hey, you called me, what's your offer? So there's like more, there's less friction and then there's less motivation because everyone has called them before because it's cheaper. So you need more leads to get one contract. So you're looking anywhere from $4,000 to $8,000 per contract. And I want to show you the last 30 days of our Facebook ad campaign. So we spent like $7,000 and then we got 88 leads on this campaign for $32 a lead. Um, and then this other one, we got 97 at $36 a lead. and then some retargeting. But all in all, we're at around less than $40 per, uh, lead, and we are contracting 1 in 20 to 25 leads. So our cost per contract is around $1,000 compared to everyone else who's at 3, 4, 5, 6, 7 grand. We are significantly better than everyone else, and that means that we make more money for the marketing spent. That we invest into the marketing because we're making an average of $22,000 to $23,000 per deal. Now, what are the hidden costs affecting your profit? If you depend on an agency, you're going to have a retainer that's going to cost you $2,000 to $3,000 per month on top of your ad spend. Now, the thing that comes when using an agency or like a pay-per-lead provider, you are competing for the same leads with wholesalers and there's no way of being different and bringing more value before the sale, which with Facebook we are able to do. There's also longer cash conversion cycles when it comes to these other channels like paper lead and cold call. Why? Because what I mentioned earlier, more people, like they've inquired multiple times and they're usually not as motivated. So the cash conversion cycle is usually longer with these other marketing channels. And then what that does is it makes you have a high CAC, which is cost of acquisition or cost per contract. And then a lot of the times if you have like a low profit per deal, like if you're making $15 grand per deal, you're only at a 2x return on ad spend depending on how many contracts you get, right? So what we want is to minimize how much it costs us to get a deal and we wanna be making at least $20,000 per deal so that we get enough margin to pocket after all the expenses and the commissions to your team and all of those stuff, right? But the core principle is that if you don't own your traffic, you're going to be paying a premium, and the premium is going to eat up into your bottom line and profit. And remember, we get into this business to make more money. So anything that I share on this channel is to help you make more money because I've been there. Where you get into those cash crunches or you don't get the return that you want. And I feel like this way with Facebook, what I'm about to show you is just way better. So I'm gonna go over why Facebook is my favorite channel. So we get a lower cost per lead. So once it's fully optimized, our cost per lead is anywhere from $30 to $60. Um, and then we have the ability to get low contracts. So if it takes us, you know, 20 to 25 leads at $50, you're looking at around $1,000 to $1,500 a cost per contract, right? And then you also have the ability to reach thousands of people for cheap. Why? Because you can put out an ad and then it's gonna play with thousands of people and then there's more interaction. So the better that your ad is, the more interaction is going to have. And by the way, this is what we share with all of her students on how to do the Facebook campaign, how to do ads, all that stuff. And I'm going to go over how we do it shortly. Um, but the other thing that I like is that there's quick responsiveness when it comes to the effectiveness, right? So if you put out an ad and then within a couple of days, you're not getting leads, then you can make a change and launch a brand new ad. Whereas if you have an agency, there's time latency of how long it takes before you make a change before you start getting the results. So the better it is, the better the results are going to be, right? So you have ability to make changes quickly. Um, and then depending on your ad, you have the chance to build trust before the sale. So it all gets connected with the ad. When you team calls the lead, how your sales process is, of course, there's a lot of things that you need to be doing right. But overall it all starts with the marketing. And what we do is get people to raise their hand, to where they said, yes, I want to sell. And then the rest is on you to be able to close the deal. But it allows us to build trust because if you put out good ads where the video is resonating with the audience, they're most likely to respond to them. And if your team is good, you're gonna get a higher chance of getting those deals under contract. And also the cool thing is that it can be replicated in any market. So if you are wholesaling Nationwide, you can implement this in any campaign and in any market and still get deals that way, right? So what do we know? Sellers who submit their information, they want to sell. So your job is to build trust so they can make a decision. So basically, the more trust we have, the more deals we can land, right? We just got to be able to give them the right strategy. So we do a lot of MLS listings where we can still wholesale a house on the open market and make more than a traditional wholesale fee, right? So this is what allows us to get a maximum ROI on our ad spend and why I love Facebook. So basically I just have way more control. So the way of— the way how we do it is we have our Arbitrage Ads method where I say F your agency, F paying for leads, you are better off learning the skill yourself so that you don't depend on these people and there's more money left in your bank account, right? So we teach you how to make great video ads, image ads, how to use AI to make your ads. Um, you learn and get access to the best ad copies that we have used, the best text copies, the best, the best headlines, the best videos. And we teach you how to hire people if you're not good at making videos and then we give you all of our targeting strategies so that once you learn it, you have infinite ROI. So basically in my market, I do videos myself and that has done very, very well. So this is kind of like an example of one of the ads that we have run. We also hire some UGCs to make the videos on our behalf. We also do image ads in English and in Spanish. And, you know, these image ads, you know, can work really good. But I kind of want to show you how our campaign is looking like as of, you know, this year. So you can see from January, we have spent like $36,000 and we had made probably like $600 or so, but our cost is pretty low. So if you divide it by month, we are spending less than $10 grand per month. And we have all these opportunities to make a deal happen, right? So all of our students, they get access to our winning— so you get our winning library of ad copies and headlines that are proven to work. So there's no guessing from your side. So you can just come in here and we can implement this in your business as soon as you get in. And we walk you through how to make your own so that it works effectively in your market. So you may ask yourself, what if I'm not tech savvy? Well, the good thing is that we set up your first initial campaigns on your behalf, and then we coach you and walk you through how we did it so that you learn the skill of doing it yourself so that you don't depend on us or an agency ever again. What if you have tried Facebook ads before and they didn't work? Well, it's not that the platform didn't work, it's just that the strategy did not work. Because what makes the platform successful is you gotta think outside the box and you gotta be doing things that not everyone else is doing and you gotta make it your own. So the platform works and there's millions of users per month and that's how we get a bunch of our leads that way. So we basically teach you the strategy that we use to get a bunch of these deals. You also, get a course where we walk you through how to set up everything, how Facebook works, all that stuff, with the goal of you learning how to do it to yourself. And here are some of the results that we've been getting with our clients. So almost everyone gets their first 1 or 2 deals the first month that they join. And what we are seeing is their cost per contract is sub-$2,000. And it gets better the more that you have your campaign running because we teach you how to optimize to keep on getting those low cost per results. And if you can relate to anything that I just talked about and you are tired of not getting the return that you want on your ad spend and you're working so hard and you want to copy this into your business, send me a DM on Instagram and let's talk about it. You're going to be making a minimum of $20,000 per month and have the ability to spend on ads. And I have more stuff on the channel. I'll link one of the videos that I want you to watch right now. But with that being said, thank you for everything, and I'll catch you in the next video. Thanks.