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Dealing with a Hot Lead Turned Cold

by blogger1
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on Thursday, 18 May 2017

Sometimes, sellers go from highly motivated to kicking the tires and dodging your calls. When you work in real estate wholesaling, this is a part of the gig. Dealing with a hot lead suddenly turned cold can be difficult and overwhelming, especially if you're new to wholesaling.

After settling on a price and getting ready to close, everything can change in a second. Maybe someone told your seller the price was too low or you discovered there's a co-owner that hasn't signed off. Many things can take a motivated seller and turn them cold.

While this is a normal part of wholesaling, there are ways to deal with it. If you have a hot lead that's suddenly turned ice cold, here are some of the things you can do.

Immediate Contract

One of the easiest things you can do to avoid watching a new hot lead go cold is get the contract signed immediately. This won't guarantee anything, but it will certainly help.

Keep Leads Coming in

Automated marketing helps to keep your leads coming in, which will help offset a hot lead going cold. When this happens, it may be easier to concentrate on the next deal than let a potential seller drag you around, dodge your calls and make excuses as they continue to waste your time.

Do Your Homework

It's possible a seller could have sold the property a day or two before. The tax record may show they still own the property, but they don't. When you do your homework, you may be able to discover this fact before it's too late.

Ask for a Non-Refundable Deposit

Hot leads are not just sellers, but also buyers, and they can go cold, too. The best way to keep buyers from walking away from the deal is to add a clause into your contract stating the buyer has to put up a non-refundable deposit with an attorney within 24 hours. You can even tell the buyer you will continue to market the property until a deposit has been made with an attorney or a title company.

Real estate wholesaling isn't always cut and dry. Some days are more difficult than others and you really do have to take the good with the bad. Hot leads will go cold, but you can do a few things to mitigate your damages. Make sure you do your homework, get the contract signed ASAP and keep new leads coming in. With buyers, get a deposit as soon as possible to ensure they don't walk away from the deal.

Authored by Best Transaction Funding is the leading source of transactional funding for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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Wholesaling Tips: How Many Leads Needed To Make $1 Million In 2014 & Where To Get Them…

by blogger1
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on Thursday, 18 July 2013

How many leads do real estate wholesalers need to make $1 million in 2014, and where should they be prospecting for them?

What do the latest real estate industry stats show about closing and conversion rates? How many leads will you need, what are some of the best ways to generate them, and how soon do you need to start loading your pipeline to close your target number of deals in 2014?

If you haven’t tweaked your business and marketing plan this is your chance to hash out the numbers quick and make the necessary adjustments.

This works just as well whether your income goals from flipping houses in 2014 are just $100k or $10 million or more. For arguments sake, we’ll use $1 million as an example, as it’s easily scalable.

If your average profits on wholesaling a house is 10%, based upon an average home price of $200k, to make $1 million next year you’ll need to close 50 deals.

That’s not a big number, but obviously not every lead equals a deal. According to a Market Leader calculator, and based upon and average lead to close rate of 2.5% (current reported average among real estate agents), you’ll need to roll into 2014 with 2,000 leads already in your pipeline and start generating 364 leads a month.

Again, this doesn’t have to be too difficult, but where do you start? Market Leader suggests looking for a monthly mix of:

• Craigslist leads: 157
• Referral leads: 15
• Social media leads: 41
• Paid leads: 151

Of course you won’t want to overlook other online marketing either and need to continue to work the long game with branding and SEO to be constantly be reducing marketing costs and increasing conversions rates.

In fact peeking into the online marketing Market Leader does itself, and used to attract the recent $355 million sales price to Trulia you may also want to include press releases, social and a lot of blogging. In the wake of Google’s new SEO update look for guest blogging opportunities, consider Facebook promoted posts and make sure you keep links diversified.

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