If you’re new to wholesaling, you’re most likely wondering how long it will take until you get your first deal. In this episode, our very own Lauren Hardy will answer that for you!
For new wholesalers, closing that first deal is a pivotal moment. After all, it can move you from a place of faith to a place of fact. However, when you don’t have an idea how long you should wait, you might give up when you’re just a few days away from signing on the dotted line.
In this episode, Lauren shared anecdotes, insights, and wisdom that can help motivate, inspire, and sustain you while you’re working on getting your first deal. If you’re new and can use motivation to keep going, this episode is for you!
But When Will I Do My First Wholesaling Deal?
My name is Lauren Hardy. If this is the first time you have read about me on this show, I would like to introduce myself. I am one of the newest coaches with Wholesaling Inc. I coach virtual investing. What is that? It is investing in an area that is not in your backyard. Either it is if you want to wholesale, you can flip, you can develop, you can buy rentals, you can do everything virtually, and I am here to talk all about it. In this episode, I wanted to talk about a topic that is very important to a lot of people that are newer. It is how long does it take to get your first deal and how long does it take to get any deal, in fact?
We are going to deep dive because I was doing my KPIs. It is always fun to do my KPIs. I hate doing it at first. When I’m about to do it, I’m like, “I don’t want to do this. This is boring. This is bottleneck work.” What I mean by that is I’m the bottleneck. I don’t feel like doing it, so it won’t get done. Once I get going, I get super into it and excited. I was running some KPIs and I was looking at my contact to deal closing, the amount of days in between, when I first made contact with a seller, and when we closed the deal. How do I do that?
First of all, this is how I track it. Anytime I get a seller lead, that seller lead goes into my CRM immediately. That day gets recorded in the CRM. I have a record of that date, and then when I close the deal, we have that date that it closes. Every one of the deals that I close in a year goes on an Excel spreadsheet. I always am intentional about collecting some dates in there so I can see how many days are in between. I like to do a couple of things. I like to keep track of my initial contact date to my contract date, which is when we got them under contract, and actual deal closing. It is super interesting when you have that data. What I found is that on average, in 2021, it takes 97 days from when a seller in my company is first in contact with each other to getting paid or closing the deal.
It is so important that you don’t give up just because you haven’t closed your first deal in a month, especially when you’re going virtual.
That is almost three months on average. I thought about that and that is average, but there are some that are quick. We do have some that are within a month, we are already closing the deal of them coming in but then we have some that are way longer. What does this mean to you as a newer investor? Let’s say you are newer and you haven’t done your first deal yet. The first thing that I noticed is the newer people want to quit so fast. You get discouraged very quickly because you haven’t closed your first deal and it has been one month or 60 days. I am giving you permission now to keep going because, on average, it takes my company almost three months to close our average deal.
In fact, I’m looking at 2021. There are only two deals that we got where the seller lead came into when we closed. It was 35 days. That was the least amount of days. I’m guessing because it was a 30-day escrow or something a little bit quicker. That means that the seller came in, we called them and got on the phone. It may be played phone tag for five days or they thought about our offer for five days, signed it, opened escrow and then closed it 30 days later, so 35 days total. There were only two and that is nothing. If I’m looking at my numbers, I have some that are 273, 264, 46 days, or 141 days from the seller to come in to finally closing that deal.
It is all over the board. That is why I like to do an average. This is why it is so important that you guys don’t give up because you have not closed your first deal in a month, especially when you are going virtual. I’m seeing it and it made me pause for a second with some of my students. A couple of my students started getting traction in a territory that they picked. They might have closed one deal but they don’t feel like that is enough. They are already going, “I’m going to try another territory out.” Do you know what is going to happen? They are going to be in that territory for 40 days, then they are going to go, “This virtual wholesaling thing doesn’t work or this wholesaling thing doesn’t work.”
I have been in business for years and it takes me almost three months for a seller lead to come in to close it. If you are discouraged after 1 month, 2 months, even 3 months that you have not closed your first deal or if it has been six months and you haven’t done your first deal yet and you have made a consistent effort, you need to either look at your mentor who is coaching you. Maybe you are getting bad advice or advice that is not working in your territory, or you need to look at your territory and pick a territory. Go virtual and pick a territory that is a little less competitive. You also need to look at your sales process, marketing process or maybe you are not handling leads properly.
If it has only been 1 month or 2 months and you are making offers to every lead that comes in and you are getting 20 leads a wee or 25 leads a week, you are giving up too quickly if it has only been 30 to 60 days. I cannot stress this enough. It is interesting when you pull KPI numbers. That is why I’m trying to get my coaching students and anybody that follows me to pay attention to their KPIs. If you guys follow me on Instagram, my handle is @ThisMomFlips if you want to find me. I give a lot of practical advice. I try to stay away from the fluff and ramble on about mindset and other things. I don’t do much of that.
I do try to give practical advice, like, “Here are the lists I use, the marketing tips, my KPIs, or things that I track on my KPIs.” I try to be as practical as possible. This is as practical as it gets. It is 97 days on average first contact to closing for my company. I have been in business for years. If you are new, please do not quit after the first 30 days or 60 days. If it hits 90 days and you have not gotten any contracts yet, I want you to seek mentorship. You can either go the paid route and find someone. Wholesaling Inc has a bunch of coaches. If not, if you don’t have the funds, find a mentor or a JV partner in your area. Say you will split the deals 50/50 if they can help you out.
It could be so many different things that you are missing. You could be offering too low. One thing that I remember as a newbie, I was offering way too low. Sellers were laughing me off the planet and I was like, “How come I can’t close a deal? This is hard.” It is because my numbers were totally wrong and I was following some 70% minus repair rule that I heard on a podcast that does not work in my territory. I was going month after month and not getting any deals. I was super frustrated and I almost gave up, but I sought out a mentor. I paid for mentorship and coaching. I did a high-level mastermind. It was $25,000 a year but it was worth it.
I made money back easily and closing deals. I have learned a ton from it. I now know what the mistakes were that I made and I fixed them. Say you hit 90 days and you still have not gotten at least a contract. I’m giving you permission to seek out a mentor. I’m not giving you permission to quit. If you have now hit six months, you have not closed a deal, and you are doing everything your mentor says, find a different mentor or look into a different territory, but I am not giving you permission to quit.
If you are new, please do not quit after the first 30 days or the first 60 days. If you hit 90 days and you haven’t gotten any contracts yet, seek mentorship.
You can do this business. It is not that hard. It is like a recipe. Say you are baking a cake and you are doing it from scratch, not from the box. If you get one thing wrong or if you forget the baking powder, your cake is going to look weird or would blow up. It is the same thing with our business. If you are doing one thing wrong in this recipe of real estate marketing, direct-to-seller marketing, sales, negotiation, offer pricing, or any of those, it will dramatically affect your bottom line. It will affect how many deals you are closing. On the flip side, you could fix the problem and do it right. All of a sudden, you are crushing it.
I was in an area and it was one of my virtual markets, but I had a hard time figuring out this one virtual market. I was very new to the rental market. I was used to flippers markets and developers markets. I was playing in those ponds when I first went virtual, and I decided, “I want to try a rental market, a market where the prices were lower.” They were under $150,000 and the majority of the end buyers were landlord buyers. I had no idea what I was doing. I was copying the homes outs like a flipper would. I was making offer after offer. Six months went by and I closed two deals, but I’m stubborn. I don’t give up. I was like, “Keep going with this territory.”
I had other territories that were keeping me afloat. This was new territory, so I had the budget to keep going. I’m extremely stubborn and I don’t give up very easily. I kept going with it. Eventually, what happened was I got a mentor who worked in other markets very similar. Within a few calls, he figured out exactly what I was doing wrong and it was I was offering too low. I needed to offer differently and I figured it out. I made the adjustment and got to closing easily five deals on average a month in that territory. I went from 0 to 5 and I’m consistent now. It has been several years and all because one ingredient in that recipe was wrong for me.
Again, I have covered so many different topics and I can do that. I ramble and I go on tangents, but I’m giving you permission to keep going. If it has been 30 days, you have permission to keep going. You cannot say, “This business doesn’t work.” You haven’t been in it long enough. For me, it takes, on average, 97 days. A practical piece of advice that I can give is, if it has been 90 days, look for a mentor. If it has been six months, you have a mentor now and you are still not figuring it out, either look for another mentor or another territory. Personally, I teach virtual investing. We have a course out and it is through Wholesaling Inc. It is at VirtualInvestingMastery.com. You can learn more about it there.
If you apply, someone will contact you and tell you all about me, the course, and the coaching program. It comes with six months of coaching and an online course that is very instructional to making a virtual market work from A to Z. I coach new investors and seasoned investors. The course applies to all experienced levels. If you are thinking about going virtual, obviously, I’m biased, but I recommend my course. Either way, if you are not and you are looking in your backyard, find a mentor.
Wholesaling Inc has amazing mentors. We have got Brent Daniels, who is the best in the business. We have got Chris Arnold with Radio. We have got some amazing mentors like Tom Krol and Cody Hofhine. They are amazing guys. Find mentorship and figure out what ingredient do you have off in your recipe. You will see that there will be a change. That ingredient, again, could be many different things. That is why you need some of these skills to figure it out.
I rambled on for a while. I hope you like what you have read. I hope it was helpful and insightful. If you like what you read, follow me on Instagram. I post a lot there. My handle is @ThisMomFlips. If you want to learn more about virtual investing, go to VirtualInvestingMastery.com. I hope you guys follow me and friend request me. I want to hear what you think about this episode. Have a good one. Thanks.
About Lauren Hardy
Lauren Hardy is a Virtual Investing expert and Real Estate influencer who owns multiple companies in the real estate industry including real estate investment, coaching, and software companies. She is also a Wholesaling Inc coach and co-host of the Wholesaling Inc Podcast.
Her experience in the last decade has been focused on real estate investing and creating products and services to serve the real estate investing community. If you are interested in investing in real estate virtually, house flipping, or virtual landlording, Lauren’s your girl.