We recently surveyed the top 500 wholesalers using Real Acquisitions (making $20,000/m or more in wholesaling) & we were shocked to learn the truth behind some of the marketing hacks being employed by these pros.
Read on to learn more:
1. Cold calling works, but…
Many wholesalers are turning to cold calling distressed sellers for deals. (BTW, one of the most popular lists for cold calling is the RA MLS deal finder list where you can find properties listed on MLS with additional distress such as in an Estate.) BUT we learned that there is a big catch to the cold calling; the most seasoned wholesalers are investing heavily in training their agents in accent training, cultural lingo, sales & closing techniques, and organization skills. In fact, a few super-successful cold calling operations we interviewed have a dedicated trainer for all their agents & VAs (virtual assistants).
2. The trick to Texting lies in…
While text broadcasts continue to remain a very popular marketing channel for many wholesalers, successful operators are employing automation to this channel to increase efficiency. Here is an example of automation we saw repeatedly, a text blast is sent, when a seller responds an automated text is sent saying “are you considering selling your property else we can remove you from our list”, followed by a phone call (from your VA to screen the seller). By employing smart screening & eliminate time wastage, efficient wholesalers are able to focus their time & energy on truly motivated sellers.
3. The email has the lowest cost per acquisition, provided…
The cost of sending an email is literally $.001, thereby making email marketing one of the lowest marketing channels for finding deals. The caveat – ‘nurturing sequences’. Sending an email out of the blue rarely works for a sale; what works is a series of 7-9 emails where you’re providing value to the seller repeatedly, gaining his trust, establishing yourself as an authority & then making the sales. We actually saw successful wholesalers employing copywriters to create powerful email nurturing sequences.
4. Ringless Voicemails are really powerful with this small tweak…
RVMs are a relatively new marketing channel but a few wholesaling and acquisition groups have cracked the code on this medium. They are relying on ‘Natural’ versus ‘Scripted’ voice recordings. We heard a few voice blasts being used by these guys & they had tons of pauses, uhms, aahs – no one had recorded these by reading a script & the response rates were almost 60% higher.
5. Facebook, Instagram & LinkedIn really work, however…
Social media marketing has of-course been gaining more & more traction in the past years with buyers & sellers of Real Estate. The pros, however, have a policy that makes all the difference – outsource to a social media marketing company. Simply, let the pros manage your social media marketing simply because that is a constantly changing world of new practices, laws, and algorithms – too much for a non-specialist to keep up with!
6. AI-driven chatbots for emails & websites; seriously!
You heard it! Cool wholesaling operations have artificial intelligence-driven ‘robots’ (AI bots) that sit on top of their emails & websites and not only encourage visitors to interact but also negotiate on your behalf! Many are employing Facebook type mediums to use chatbots atop messenger app
7. Direct Mail remains the King of marketing channels…
For the past 50 years, no one has been able to shake the king from his throne – Direct Mail still rules. According to our survey, over 30% of deals (most for any marketing channel) are continuing to come from post-card & letters sent to motivated sellers. Reason? Direct mail responses are much more deliberate action on part of sellers & the quality of the lead is much higher.
FYI – On Real Acquisitions, the pre-pre foreclosure list that captures the Loan modifications and Substitutes trustee notices is a remarkable high performing list currently, as per most wholesalers. (no surprise there given the COVID driven mortgage delinquencies)
PS: According to a wholesaling operation that heavily relies on Text marketing, the fact that they are not ‘soliciting’ any product/service but making an offer to buy, exempts Text blasts from most Do Not Spam calls! Keep in mind, you must seek legal counsel before engaging in any form of marketing to stay compliant with state & federal laws regarding the use of homeowner data.
