How Many Leads Does It Take To Wholesale 5 Deals A Month? (The Real Math) | Flipping Mastery Weekend Edition

On today's Wholesale Hotline Podcast (Special Saturday Edition), we help you start your weekend right offering tips, news and mindset advice. Show notes -- in these episodes we cover: Tips to level up your wholesaling business. Motivation to keep you going on your real estate journey. The latest industry news to keep you updated. Please give us a rating and let us know how we are doing! ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ ☎️ Welcome to Wholesale Hotline & Flipping Mastery Breakout! ☎️ Jerry Norton went from digging holes for minimum wage in his mid 20's to becoming a millionaire by the age of 30. Today he's the nation's leading expert on flipping houses and has taught thousands of people how to live their dream lifestyle through real estate. **NOTE: To Download any of Jerry's FREE training, tools, or resources… Click on the link provided and enter your email. The download is automatically emailed to you. If you don’t see it, check your junk/spam folder, in case your email provider put it there. If you still don't see it, contact our support at: [email protected] or 888) 958-3028. ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 💲 USE THIS LINK FOR DISCOUNTS AND FREEBIES TO USE IN YOUR BUSINESS: 💲 Make $10,000 Finding Deals:b https://flippingmastery.com/10kpod Get 100% funding for your deals! https://flippingmastery.com/fspod Mentoring Program: https://flippingmastery.com/ftpod FREE 8 Week Training Program: https://flippingmastery.com/8wpod Get Paid $8700 To Find Vacant Lots For Jerry: https://flippingmastery.com/lfpod FREE 30 Day Quickstart Kit https://flippingmastery.com/qkpod FREE Virtual Wholesaling Kit: https://flippingmastery.com/vfpod FREE On-Market Deal Finder Tool: https://flippingmastery.com/dcpod FREE Wholesaler Contracts: https://flippingmastery.com/wcpod FREE Comp Tool: https://flippingmastery.com/compod FREE Funding Kit: https://flippingmastery.com/fkpod FREE Agent Offer Sheet & Scripts: https://flippingmastery.com/aspod FREE Cash Buyer Scripts: https://flippingmastery.com/cbspod FREE Best Selling Wholesaling Ebook: https://flippingmastery.com/ebookpod FREE Best Selling Fix and Flip Ebook: https://flippingmastery.com/ebpod FREE Rehab Checklist: https://flippingmastery.com/rehabpod ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🔌 PLUG IN & SUBSCRIBE 🔌 SUBSCRIBE: Jerry Norton and Flipping Mastery TV FACEBOOK: http://www. Facebook.com/flippingmastery INSTAGRAM: https://www.instagram.com/flippingmastery/ ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🤝 #SQUADUP & GET MORE DEALS DONE in the Wholesale Hotline LIVE Facebook group: https://www.facebook.com/groups/759418414582645 🤝 ‼️‼️Pro tip: Make a post with your market & what you need help with‼️‼️

• 0:03Speaker 00

  Hey, it's Jerry Norton. Welcome to the Wholesale Hotline Podcast and the Flipping Mastery Breakout. We want to know how we're doing, so please leave a comment and give us a rating.

• 0:17Speaker 00

  Most wholesalers don't have any idea how many leads it actually takes to close a deal. That's the real difference between the amateurs and the pros. The pros don't guess. They know exactly how many leads it takes and they track the numbers meticulously. So if you're ready to take your wholesaling business to the next level, this is for you. I'm going to show you exactly what it takes and how many leads you need to close five deals a month. All that and more, coming up. If you're new to wholesaling, my name is Jerry Norton. I've been wholesaling houses full-time now for over 20 years. And what I've noticed over all these years is the million-dollar producers in wholesale real estate understand that wholesaling is nothing more than a numbers game.

• 1:00Speaker 00

  It's a funnel where motivated seller leads come in the top of the funnel and closed deals come out the bottom of the funnel. Once the conversion process is dialed in, it's a simple math equation to do more deals and make more money. Here it is. You ready? More leads in the top of the funnel means more closed deals at the bottom of the funnel. Now, let's think about it this way. In my mind, I think the goal of every novice wholesaler should be to become a million-dollar producer. That's 1 million in annual gross revenue. Well, if the average wholesale revenue is approximately 16,500, you would need to average five deals per month to hit a million in gross revenue. Now, isn't that wild?

• 1:41Speaker 00

  All it takes to do a million in revenue in wholesale real estate is five deals a month, assuming a 16,500 average wholesale fee. That's not that hard and you have to believe that's possible. If you're not doing that now, make that your goal. Right on your mirror in the bathroom, I am a million-dollar wholesaler. So, how do you do it? That's the question. Well, first, let's break down the steps in the funnel and then give some industry-standard conversion rates of what you can expect. Now, there are a few different ways that you could look at these metrics or what we often call key performance indicators, or KPIs for short. The conversion funnel and KPIs that I really like are modeled after the national franchise,

• 2:23Speaker 00

  Joe Homebuyer. And the reason why is it's simple and concise. First, at the top of the funnel are what we call leads. Now, leads are used very loosely in the industry, so let me clarify. In our conversion process, a lead is simply an unqualified potential distressed seller. For example, if you go on propwire.com, there's a dropdown menu with dozens of lead types. You could choose absentee owners with high equity, and it will give you a list of leads. They're unqualified leads because you have no idea if they're even interested in selling, let alone at a discount. Now, one thing to consider is not all leads are created equal. A good way to think about leads is the more exclusive, the more valuable. In Propwire, there are leads that are easy to get.

• 3:07Speaker 00

  In fact, you can download like 10,000 regular leads per month for free in Propwire. Just go to joinpropwire.com. Propwire also has premium leads that are more difficult to get, such as code violations and liens. Now, the only way to get these premium leads is manually from the county courthouse. So, since these leads are harder to get, they are also more valuable. Now, you can go to propwireleads.com to learn more about how you can get access to these premium leads. Once you generate a lead, the next KPI is to qualify the lead, and that means you have to make contact with the owner. You have to identify that there's some distress and some motivation, and then the owner is, in fact, interested in selling. We call a qualified lead simply an opportunity.

• 3:51Speaker 00

  It's an opportunity because they're interested in selling, but it doesn't necessarily mean that it's a deal, which is the third KPI to track, and that's an appointment. The appointment happens with you or your acquisition salesperson. It could be on the phone if you're a virtual wholesaler, or it could be in person if you're doing a backyard business model. The appointment is where you make the offer. Now, after making the offer, the fourth metric to track is to execute a contract. Again, this could be an electronic contract if you're virtual, or a printed, hand-signed contract if in person. Once you have a contract, the fifth and definitely the most important KPI is the closing, because that's where you get paid. From contract to closing is where you find a buyer, go through title or a closing attorney.

• 4:36Speaker 00

  All of the parties show up, and a successful transaction occurs. The seller gets paid, you get paid, and the buyer owns a new property to rent or fix and flip. The acronym for Leads, Opportunities, Appointments, Contracts, and Closings is LOAC. The LOAC is the report card of your wholesale business. And with my teams and partners, we look at these metrics religiously every single week. We live and die by the LOAC. Show me a healthy LOAC, and I'll show you a million-dollar wholesale business. If your LOAC is off, you will struggle. So let's break down how the LOAC should convert, and then we can reverse engineer what it will take to do five deals per month. The first ratio is Leads to Opportunities.

• 5:20Speaker 00

  What percentage of leads convert to opportunities? And we're going to look at this ratio last because it has the most room for fluctuation, because it depends on the marketing channel or where those leads come from. But once a lead raises their hand and says they want to sell and becomes an opportunity, at least 50% of those opportunities should turn into appointments. That means one in two opportunities becomes an appointment. From those appointments, you should aim for 25% to execute contracts. That means one out of every four appointments results in an executed contract. And of those executed contracts, 75% should make it to the finish line and convert to a successful closing.

• 6:02Speaker 00

  That means three out of four contracts should close. So using these industry standard conversion rates, it would take 56 opportunities to get 28 appointments, to get seven contracts, to get five closings in a given month. Now, a really simple way that I like to think about this is if you want to close five deals a month, you better be going on one appointment a day. Now, that brings us full circle back to how many leads are needed to generate five deals a month. And like I said a minute ago, this depends on the lead source. And to keep things really simple, let's slump leads into two different categories. Outbound leads and inbound leads. Outbound marketing is where you contact the seller, like cold calling.

• 6:46Speaker 00

  Inbound marketing is where the seller contacts you, like Google Ads called pay per click or PPC, and pay per lead or PPL. Let's talk first about inbound leads. Inbound leads should convert at 75%. So that means we need about 75 inbound leads to get 56 opportunities, to get 28 appointments, to get seven contracts, to get five closings in a given month. Now, if you're ready for inbound marketing, I'll leave in the description below who I recommend you use for PPC and PPL advertising. So now let's talk about outbound marketing. Outbound leads have so many variables. They're going to range from 1% to 10%, again, based on where those leads are coming from. But let's go in the middle and use a 5% conversion.

• 7:30Speaker 00

  That means you're going to need approximately 1,000 outbound leads to get 56 opportunities, to get 28 appointments, to get seven contracts, to get five closings in a given month. And you might be wondering, why in the world would I do 1,000 outbound leads versus 75 inbound leads to get to the same five deals per month? And the answer is you probably wouldn't unless you have a marketing budget constraint. Outbound leads are very inexpensive, but more work, and inbound leads are much more expensive, but much less work. Think about it this way. Would you rather spend $1,500 doing outbound to get five deals? Or $15,000 doing inbound to get five deals?

• 8:11Speaker 00

  And before you answer, keep in mind outbound leads have a much longer cash conversion cycle. It can take four to six months of follow-up to close outbound leads, whereas inbound leads can be as fast as 30 to 60 days. Another thing to consider when comparing the two is your average assignment fees for outbound leads might be $10,000 to $15,000, whereas inbound are much higher at $20,000 to $25,000. Overall, spending $15,000 in inbound marketing to do five deals where the cash conversion cycle is shorter and the assignment fees are bigger and the work to convert those leads is much less, is always going to be better. That's why most of the top wholesalers primarily do inbound marketing.

• 8:53Speaker 00

  However, having said that, what if you could generate high-quality outbound leads at a fraction of the cost that convert faster and for higher fees? That would be a complete game changer, and that's why you really should check out PropWire's premium leads. Using AI, these leads are highly qualified and more exclusive for a fraction of the cost of inbound marketing. And to learn more, just go to PropWireLeads.com. Now, if you found this breakdown really helpful, leave a comment and say, "Thank you, Jerry. You are a flipping genius." Finally, if you do decide to do outbound marketing, I don't recommend you do the cold calling yourself personally. That's not the best use of your time. There are overseas agencies that can do the cold calling and bring you those qualified opportunities for a fraction of the cost, where all you need to do is set and go on

• 9:38Speaker 00

  appointments. Thanks for listening to this podcast. To get more free tips, check out my YouTube channel. Just search Flipping Mastery TV on YouTube, where I have over 1,000 videos teaching you how to make more money with real estate. On my channel, I also give away free stuff like my Quick Start Kit, with everything you need to flip your first house in the next 30 days. Or my deal finding software called Data Cruncher, which finds discounted houses in any ZIP code in a matter of seconds. You can get those for free at MyQuickStartKit.com and MyDataCrusher.com.