The Reason Why Your Leads Don't Turn Into Contracts

If you are generating leads but you're not getting contracts and your bank account isn't growing, it's probably not because of the lead source, your market, or even because the sellers are asking way too much these days. I have closed over 300 real estate deals and I built a lead gen system that brings in 20 to 40 motivated inbound sellers every single week. And after working with wholesalers who were stuck at the $20K or $30K a month and helping them scale past $100,000 per month, I can tell you that the real reason that deals fall apart have nothing to do with what most people So in this video, I'm going to break down the actual reasons why your leads aren't converting into contracts and closed deals. And this is what I see every single day working with wholesalers who are in the trenches. So let's get into it. So number one is that you're blaming the lead source instead of your process. And every lead gen method works to some degree, whether it's direct mail, cold calling, PPC, or Facebook ads. But the problem is that you're giving up way too early before you give the source a real chance, or you don't have systems and processes in the backend where you know exactly how many leads you need in order to get a contract. So you give up too easy. So you get 8 leads and you're quitting because 2 of them said that they're not interested in selling. So you actually need to have volume and consistency before you can actually judge if something works. So you have to be able to track and know exactly what is to be expected with that channel, whether it's cold calling, texting, Facebook ads, PPC, direct mail, because we are trying to build a business that's replicable and we're trying to scale it based on data, not just on feelings. So if you don't understand how everything works on the backend and you don't have a system, in place in order to process the leads and test it, you're never going to have success. So when it comes to the different marketing channels, some markets are going to perform better than others. And based on the industry standards, we know how many leads we're gonna need in order to get a contract. For example, for Google PPC, you're gonna be paying anywhere from $200 all the way up to $500 depending on the market per lead. And on average, you're gonna need 10 to 15 leads to get one contract. On Facebook ads, the standard is going to be 20 to 30 depending on how good you are in the sales process. And on average, you're gonna be paying less than $100 cost per lead. The Mail, you probably need usually 1 contract for every 42 call-ins that you actually get. And that is including people who tell you, take me off your list, F off, or I'm not interested. So 1 in 42 call-ins are going to give you a contract. And then the piece of mail is going to vary depending on how much it's going to cost you per postcard or how many you need in order to get those call-ins into the business. For cold calling, anywhere from 60 to 100 leads depending on who you're calling. Texting, same thing. If you don't know how these numbers work on the backend, And if you're trying to base on a couple bad leads, you're never going to get success. 'Cause wholesaling is about sales and marketing. So the sooner that you realize this is going to help you out a ton. Now, the second reason why I see most wholesalers fail is because their follow-up system is weak or nonexistent. So most wholesalers are going to place one or two calls and then move on into the next lead. And remember that the money is in the follow-up because 80% is going to come from follow-up. Of course, not every lead that we get on the first day is going to be contracted. We need to explore what's going on with their life, and then we're gonna keep on following up until we get an answer, right? So remember, the money's in the follow-up, but only if you are actually following the process. And if you don't have a sales process where you know what happens in the first call where you qualify, number 2, in the appointment call where you dig in for the motivation and find out exactly what we need to solve in order for them to sell and really figure out what their next steps would look like and actually earn the deal by asking the difficult questions and letting them know that everything will be solved with our offer. So if you don't have that, you're never going to get deals. Because remember, we're not in the business of just sending out offers. We're in the business of getting deals. And how do we get deals? By solving big problems. That is exactly why we get paid $10K, $15K, $20K, $25K per deal in order to make this happen. Where if you don't have a process and you don't really understand who you are talking to, that is why sellers ghost you because you didn't set up the proper expectations or because you didn't address non-committal language or because you didn't talk about influencers or potential roadblocks and you didn't earn their trust whenever you are negotiating with them. So you give them a low offer, they're going to ghost you and they're not gonna tell you exactly what it is that they want, but cuz you haven't earned that yet and it all gets fixed within your systems and your processes. So the reality is that most of you are not good at sales and really understanding all of this. We have to understand that a motivated seller is dealing with, you know, a debt in the family, financial distress or stuff that is making them have pain. So we have to understand that and know that they're going through something hard. So we have to earn our deals and we do it by actually wanting to help the seller. Because if you only look into this as making a transaction, you're never going to win because the person who cares the most for the seller is the one that ends up getting the deals. So the sooner that you fix your sales process and your follow-up and your intentionality when it comes to talking to these sellers, the sooner you're going to get more deals. Now, the third reason is you shouldn't give out an offer to every seller. Now, what we want is to be able to qualify. Remember, who is our ideal seller? Someone who's going through something difficult financially that has some you know, experience pain. And number 2, they have to be ready to sell right now. So whenever we intake a lead, we have to have those 2 things. Are they urgent to sell and are they motivated? Because if they are not and their price doesn't work in their initial call, then why would we give them a call— I'm sorry, give them an offer if we know that there's nothing emotionally going on for them to sell? Because remember, wholesaling, it's all about emotions and the sellers who sell us the properties because they're going through something emotional. So we have to be able to earn that. So what I see out a ton is that most of you guys are sending out offers to people who are not even qualified for them, for you to give them an offer based on cash. So the most important thing, we have to qualify the lead. How do we qualify the leads? Is, are they ready to sell? And number 2, is there anything going on in their life that would make them want to sell to us as an investor for a discount because they have a big problem? And there's ways for us to really uncover that, but you should not spend a lot of your time with people who are not motivated or ready to sell. You just put them into the follow-up and tell them, hey, I mean, by the looks of it, we're looking to buy something by the end of this week. And just kind of hearing about what we're talking about, we may not be the best fit. So it would, would it be okay if I follow up with you in the next couple weeks? Okay, you don't have to give out an offer and just tell them that you're not a good fit. Promise you, you're gonna save so much time and the seller's gonna respect you more. But okay, let's say that we have qualified leads. From the qualified leads, we want to give out an offer to 80% at least of those people on a given week. Why? Because if we have the urgency and we have the motivation, then within our appointment call, our sole focus and job is to find out exactly why they would sell. What have they looked into in the past into solving this problem? How long has this been going on? How long can they last if this keeps on going on? Right. And when it comes to talking about the price, okay, with this amount of money, Mr. Seller, let's say that you didn't get this asking price that they're asking for. They're always going to ask more than what we pay. So do not let that stop you. But okay, let's say that you were to ask them like, hey, Mr. Homeowner, if you were not able to get this price, with, and it was less, let's say 50% or 60% from what Silo says, would that still be enough for you to be able to solve your X, Y, Z problem? Now you get the point, right? You are trying to get ammunition by asking them the questions, like genuinely caring on what it is that we need to solve in order for them to move forward, right? Because if we don't earn our right to ask the questions or ask the painful questions in order for us to get that information, then we're not going to make a deal happen because it's emotional. It's not logical, because why would they sell the property for 30% off? 40% off when they can do it with a realtor. There's got to be some massive pain. And if you think into this, into you actually finding out exactly what needs to happen before, you know, they sell, and the many and more of these offers that we can give where we don't only give cash offers, where we do innovations, our likelihood of us getting deals and solving a problem is going to increase tremendously. And that is why we're able to contract one deal for every 4 offers that we give the sellers. And a lot of these people that we don't contract on the first week that they come in, we end up following up with them weeks later, And they still want to work with us, one, because we were transparent with them in the beginning. We let them know exactly how we work. We genuinely care and ask them like, what is going on and how we can help? And if we thought like we're not a good fit, we're going to tell them. Or they were talking to another investor and they were giving them more, we tell them like, hey, I mean, how likely is it that they're going to close? Because they're probably going to put it in contract and then they're going to price reduce last minute in order to do that. So for me and Mr. Sattler, when you work with us, you're going to get my full honesty and transparency, even if it's painful and even if it hurts me from making the deal. What I want you to know is exactly how we work and what to expect and how we actually make make a profit. In order for us to solve your XYZ problem, this is exactly what we would need to be, because it is something that we can guarantee and it is something that we are comfortable in moving forward with. But I'm not going to lie to you in order to make this deal happen. So a lot of the times they come back to us and actually we get the deal because we offer our services and be like, hey, if you get another offer, I would like to review it. Like, just don't accept it as a courtesy. We're going to review it for you and we're going to try to burn the boats on that other wholesaler and really, really, really care about them. Because if you do that and they trust you more and you earn their trust and respect, the likelihood of you getting that deal is going to increase tremendously. And we don't want to be like the rest of the wholesalers. We generally want to be able to help them. So the more of that we, that we do, the more deals that we're going to be able to get. Now, look, everything that I just covered is just a piece of the puzzle. So if you're a wholesaler who's doing at least a few deals and you want to build a predictable inbound seller system where you can actually scale based on profit, without having to do traditional outbound methods that don't work anymore so that you can actually keep more profit in the business and build the business that you always wanted without you being the main bottleneck, then click on the first link in the description down below to book a call with me and my team so we can show you exactly how we can help you scale. Now, a quick tip on giving out offers is that every seller is going to go into a different bucket. And if they come from inbound as opposed to, you know, like an outbound method is what we want since they have probably already talked to other people and we did our homework and we dug deep into what they have tried before. When it comes to selling, then we're going to find out, you know, what kind of has happened before. Where when it comes to the offer, whenever we are talking to someone who is a tired landlord, that's going to be totally different from a seller who is going through foreclosure, right? So we need to keep that in mind and know exactly who it is that we're working with before we give out the offers, right? Because if we don't do that and if we just lowball everyone, then they're probably going to ghost you or hang up on you because you are not respecting them. So the more trust that you build, you earn the permission to give them a lower offer and you talk about it as you are negotiating. When we do, when we give out offers, we're always going to come in lower than what we can pay because then we start kind of negotiating. And oftentimes, if you give out the seller the best offers from the get-go, then they think that they're leaving money on the table because you gave it to them so easily. So that is why we start low and then we will increase it, but it's kind of like a tug of war, right? So first, like, hey, if we could do, you know, a little bit more, would that change anything? I know you're here, I know we're here, I mean, what would be a number that you said yes to today? And that is exactly what we need to keep in mind because some of these properties, like let's say you got a property that is retail ready, but they are motivated and they are urgent and they have enough pain where they would take the convenience factor of our offer, whether it's cash or renovation, then we know that like if the cash offer was way too low, we can tell them like, hey, for a cash offer, I mean, it would be just kind of like way too low, but still offer that and tell them about the innovation because we can pay 20, 30, you know, probably 15 to 20% more than we would on the cash. So, you know, just keep it in mind and frame it where it's like, hey, you know, our cash offer probably wouldn't be the best, but I do have another solution that I can present to you where we can pay more for that. And if you go about it that way where it's more like, okay, how much they need to actually walk away from, from this in order to solve this problem, then our likelihood of getting that deal, like I said, is also going to increase. So all that to say, you need to keep in mind with the type of seller that you are working with. And not every offer is going to be the same for every seller because we don't want to shoot ourselves in the foot. Because if we earn the trust in the report and we know that we can solve the problem, and if we just present the best offer that's going to solve that problem, then we're going to get more contracts. Now, the next reason why your leads are not turning into contracts is because you don't know what to track on a weekly basis. Now, with inbound, which is my preferred way of marketing, probably like 50% of the leads that come in on a weekly basis are going to be qualified leads. And from those qualified leads, that 50% of the leads that came in, we want to complete the appointment call, meaning they are urgent and they are motivated. So we want to complete the appointment and dig for the motivation, ask for the information, and then we're going to give out an offer to at least 80% to 100% of the leads. And what we want and what we should be shooting for is to be able to get one contract for every 4 to 5 offers that we give the seller, because if that number is off, is because you messed up somewhere in the sales process. Like I was talking about earlier, you didn't set up the proper expectations or dug deep for the motivation or talk about influencers and what needs to happen for us to solve that problem. Because if you're not good at sales, then it doesn't matter how good you are at marketing, you're going to be able to convert. So if you are— your offer to contract ratio is above 4 to 5 to a contract, then you need help with the sales process where you understand exactly what is going on, why you ask the questions and how to dig for that, then you're going to know exactly where the bucket is leaking, you know, opportunities from. And if you don't fix that, you're never going to be able to get deals. Because if you have the plan and you're able to follow it, then you know exactly what you need to work on as you get better at sales and wholesaling in order for you to actually get more consistent. So if you don't track the numbers, then you're not going to be able to have deals. So I've made some videos here on the channel on how to reverse engineer that into your business, depending on your capital that you have available to invest in marketing. But if you don't have that, you're never going to be able to scale. Now, another thing to keep in mind is that whenever you qualify a lead and you already went to the appointment, whether it was in person or over the phone, you can't take a long time before you give them out the offer. You got to be able to shorten that timeframe because if we let opportunities, you know, pass on until the next week, it's going to affect us in our lead-to-contract ratio. And if you take too long, they're going to talk to other people and other people who are better at you at sales, you're going to get that deal. So we cannot take too long in giving them out the offer. So what we like to do is after we go through the appointment call, that is the most important call. We're going to spend the most amount of time talking to the sellers and building that trust and actually do our job in order to make that deal happen. But then we actually want to take the time to fully comp the property. What can we realistically sell it for, whether it's on market or to an investor? And whenever we give them back the offer call where we go over what the offer is, how much you qualified for, and the next steps if they decide to work with us, in that offer call is when the negotiating actually happens. We take too long in order for us to tell them exactly what we can do for them and how to solve the problem. If we don't do our job and we just put out whatever offer, you know, based on the calculator, then that is going to affect it for us, right? So we got to be able to still, you know, use a cash offer or an ovation in order to make that deal happen, where depending on what type of situation the seller is in, it's going to change. But if you take too long in giving out the offers, somebody else is going to steal the deal from you. So keep in mind the the quicker that you give it to them, the quicker you're going to be able to get a yes or no, and the more deals you're going to be able to get on a weekly basis. Now, another reason may be because you don't know exactly how to attract the team members that are going to help you grow your business. And just know, one of my own limited beliefs, that was that I was the best at closing and I was never going to be able to find people that were going to be able to close as good as me. And, you know, that may be true to some extent, but just know that you can attract people and hire people who can operate at 80% of your capacity. And if you are in the day-to-day and you cannot follow back up with the sellers, or maybe you're taking way too long to give out offers because you are in the weeds, it may be time for you to hire a person like a lead manager or a closer. As long as you are above $20K or $30K a month, that is a good time before you can actually bring in people into the business. But just know that you can attract great people. And the number one thing that we needed to do before try to bring someone on is one, What kind of person do we want to attract into the business? How do we do that? By setting out the fundamentals and the core values of our business. What are the 4 main things that I or you as a business owner that you look for and how do you operate? Right. It can be something like, okay, driven, integrity, faith, teamwork, because what we want is to hire people that are core value fit so that you can coach them, train them, and make them produce. But after you get your initial round of people, you have to onboard them, train them, and give them feedback in order for them to keep on producing and getting better. And usually if people fail, right, going to be because you didn't set up the proper onboarding, you didn't train them, or you didn't coach them on what they need to do in order for them to produce. And even before that, if you attract someone who's not a core value fit, then it doesn't matter because they're not going to be compatible with you and how you operate. So therefore they're not going to produce. It's got to be very important that you keep in mind who is the type of people or person that you're trying to bring into the business that is going to be able to help you. Because if they come in and they produce, they're going to make you way more money, which is going to give you more time for you to focus focus on the business and actually keep on making more profit. Now the final part is going to come down to shiny object syndrome. Now a lot of wholesalers are not— and they want to try this new strategy, and then they want to jump into this other market, and then maybe they're looking— they're doing local marketing and they want to do nationwide. What I want you guys to focus on is staying disciplined to a marketing channel and a strategy for at least 3 to 6 months before adding something new. Because if you stay focused and you actually fix the things that I talk about in this video, it's going to give you consistency. But if you are switching from thing to thing, strategy to strategy, market to market, you're never going to get consistency. So a plan and a part of being successful is actually staying disciplined for long enough for you to see the results. But if you know exactly on the things that you need to focus on on a weekly basis and a monthly basis, you're going to be able to have the plan and actually get the revenue and the results of your effort so that you can invest back into the business and keep on growing it. So what I want you guys to do and focus on is staying disciplined and staying determined in order to make this work. So those are a few of the reasons why your wholesaling leads are not turning into deals. Figure, follow up, fix your sales process, learn how to actually contract your numbers, learn exactly how to hire and stay in your lane and disciplined enough to get the results and you're going to get results. Now, if you want help building a system that is going to bring you motivated seller leads daily and weekly, and where you can get someone who's going to help you scale based on profit and hire team members by them learning the sales process. You can convert more deals into actual contracts without cold calling or doing the traditional outbound stuff. On the first link in the description down below and book a call with me and my team, we're going to map out exactly how to get you from a few deals a month to 3, 4, 5, 6+ extra deals per month using inbound leads alone and our proven systems. So thank you for watching and I'll see you on the next video.