Posted on: September 14, 2020

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!

Key Takeaways

  • How she tracks her deals
  • Why she keeps track of her initial contact with seller until contract date
  • Average number of days from initial contact to closing
  • The importance of not giving up especially if you are doing things virtually
  • What to do if 90 days has passed and you have not found a deal yet
  • The importance of finding a mentor
  • What you can do especially when you’re first starting out

RESOURCES:

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Episode Transcription

Lauren Hardy:
You are listening to the Wholesaling Inc. podcast. I’m your host, Lauren Hardy. If this is the first time you have heard me on this podcast, I’d like to introduce myself. I am one of the newest coaches with Wholesaling Inc. and I coach virtual investing. What is that, you may ask? It is investing in an area that is not in your backyard. Either it’s, 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. Today I actually wanted to talk about a topic that is very important, I think, to a lot of people that are newer. It’s, how long does it take to get your first deal and how long does it take to get any deal, in fact? Well, today we are going to deep dive because I was actually doing my KPIs and it’s always fun to do my KPIs.
It’s funny because I actually hate doing it at first. I dread doing it. 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 kind of thing. But once I get going, I get super into it. I get super excited. So today I was running some KPIs and I actually was looking at my contact to deal closing, the amount of days in between when I first made contact with a seller to when we closed the deal, the dates in between that. Now 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 date gets recorded in the CRM so I have a record of that date.
Then when I close the deal, we have that date that it closes so I have a record of that date. Every one of the deals that I close in a year goes on an Excel spreadsheet and I always am intentional about collecting some dates in there so I can see how many days are in between. So I like to do a couple things. I like to keep track of my initial contact date to my contract date, which is when we got them under contract, and then I like to keep track of initial contact to the actual deal closing. It’s super interesting when you have that kind of data. What I found is that on average this year, it takes 97 days from when a seller and my company are first in contact with each other to getting paid, closing the deal. 97 days.
That’s almost three months on average. I thought about that. That’s just average. There’s some that are really quick. We do have some that are within a month, we’re already closing the deal of them coming in, okay? But then we have some that are way longer. What does this mean to you guys? As a newer investor, okay, so say you’re newer, you haven’t done your first deal yet. The first thing that I noticed is people, you guys, man, you newer people want to quit so fast. You get really discouraged very, very quickly because you haven’t closed your first deal and it’s been one month or it’s been 60 days and you still haven’t closed your first deal. But I am giving you permission right now to keep going because on average it takes my company almost three months to close our average deal.
In fact, I’m just looking at the year right now. There are only two deals that we got where the seller lead came in to when we closed, it was 35 days. That’s the least amount of days it was, and I’m guessing because it was a 30 day escrow or something a little bit quicker. So that means that the seller came in, we called them, got on the phone, maybe played phone tag for five days or they thought about our offer for five days, signed it, opened escrow and closed it 30 days later. So 35 days total. There was only two. That’s… I mean, two. That’s nothing, right? Now if I’m looking at my numbers, I’ve got some that are 273 days, okay? 273 days it took from the seller to come in to finally closing that deal. We have some that are 264.
I have some that are 46 days. Some that are 141 days. I mean, it’s all over the board. So that’s why I like to do an average. So this is why it is so important that you guys don’t give up just because you haven’t closed your first deal in a month, especially when you’re going virtual. I’m seeing it and it made me pause for a second with some of my students. A couple of my students just started getting traction in a territory that they just picked about 40 days ago. They might’ve closed one deal, but they don’t feel like that’s enough. So they’re already going, “I think I’m going to try another territory out.” But you know what’s going to happen? They’re going to be in that territory 40 days and then they’re going to go, “Oh, this doesn’t work. This virtual wholesaling thing, it doesn’t work,” or, “This wholesaling thing doesn’t work.”
But I’m telling you right now, I mean, I’ve been in business for eight years. It takes me almost three months for a seller lead to come in to close it. So if you are discouraged after one month, two months, even three months that you haven’t closed your first deal, I’m going to tell you, you are giving up way too quickly. If it’s been six months and you haven’t done your first deal yet and you’ve made consistent effort, I would say you need to either look at your mentor who’s coaching you and maybe you’re getting bad advice or advice that’s not working in your territory. Maybe you do need to look at your territory and pick a territory, maybe go virtual and pick a territory that’s a little less competitive. Maybe you need to look at your sales process, your marketing process.
Maybe you’re just not handling leads properly. If it’s only been one month, two months and you’re making offers to every lead that comes in and you are getting say 20 leads a week, 25 leads a week, and you’re trying to make offers to every single one, you are absolutely giving up too quickly if it’s only been 30, 60 days. I cannot stress this enough. It’s just so interesting when you pull KPI numbers. That’s why I’m trying to get my coaching students and anybody that follows me to really pay attention to their KPIs. If you guys follow me on Instagram, my handle is thismomflips if you guys want to find me. I give a lot of practical advice. I try to stay away from the fluff and the let me, I don’t know, just ramble on about mindset and other things that it’s… I don’t do much of that.
I really do try to give practical advice. Practical like, “Here are the lists I use. Here are the marketing tips. Here’s what I do. Here are my KPIs. Here are the things that I track on my KPIs.” I try to be as practical as possible. This is as practical as it gets. 97 days on average, first contact to closing for my company. Been in business eight years. So if you are new, please do not quit after the first 30 days or the first 60 days, okay? Now I will say, if it has hit 90 days and you haven’t 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. A little plug there. But if not, if you don’t have the funds, find a mentor, a JV partner in your area. Say you’ll split the deals 50/50 if they can just help you out.
It could be so many different things that you are missing. You could be offering too low. So one thing that I remember as a newbie, I was offering way too low, okay? Sellers were laughing me off the planet and I was like, “How come I can’t close the deal? This is so hard.” Well, it’s because my numbers were totally wrong. I was following some 70% minus repair rule that I heard on a podcast that does not work in my territory and I wasn’t getting deals. So I was going month after month after month and not getting any deals. I was super frustrated. I almost gave up, but I sought out for a mentor. I paid for mentorship. I paid for coaching. I did a high level mastermind. It was $25,000 a year, but it was worth it.
I made the money back easily closing deals and I’ve learned a ton from it. I now know what the mistakes were that I made and I fixed them. So say you hit maybe 90 days and you still haven’t gotten at least a contract, I’m giving you permission to seek out a mentor, okay? I’m not giving you permission to quit. I’m giving you permission to seek out a mentor. If you’ve now hit, say, six months, you haven’t closed a deal and you’re doing everything your mentor says, I’m going to say either find a different mentor or find a different territory. Maybe look into a different territory. But I am not giving you permission to quit. I’m telling you this business, you can do it. It is not that hard, but it’s like a recipe. Say you’re baking a cake and you’re doing it from scratch, okay? You’re not doing it from the box. Which I’ve never done. I’ve maybe baked a cake from scratch three times in my life.
But say you’re baking a cake, right? There’s a recipe. If you get one thing wrong, if you forget the baking powder, your cake is going to look weird or something. It would blow up. I don’t know what baking powder even does, but it’s 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, any of those, if you’re doing any of those things and one of them is wrong, it will dramatically affect your bottom line. It will affect how many deals you’re closing. But then on the flip side, you could, boom, fix the problem, do it right.
All of a sudden you’re crushing it. I know for a fact. I was in an area. It was one of my virtual markets. I really had a really hard time figuring out this one virtual market. I was very new to a rental market. I was used to flippers markets and developers markets and I was playing in those ponds, so to speak, when I first went virtual. I decided, though, 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 out like a flipper would and I was making offer after offer after offer. Six months went by and I think I closed two deals. But I’m stubborn, okay? I don’t give up, right?
So I just was like, “Okay, keep going. Keep going with this territory.” I had other territories that were keeping me afloat, okay? This was a new territory. So I had the budget to keep going and I’m extremely stubborn and I don’t give up very easily so I kept going with it. Eventually what happened was I got a mentor. I got a mentor who worked other markets very similar. It was within a few calls he figured out exactly what I was doing wrong and it was, I was just offering too low. I needed to offer differently. I figured it out, made the adjustment and got to closing easily five deals on average a month in that territory, easy. So I went from zero to five consistent now. It’s been several years. All because just one ingredient in that recipe was wrong for me.
Again, I mean, I’ve covered so many different topics, right? I can do that. I ramble and I go on tangents, but I’m giving you permission to keep going. If it’s been 30 days, you absolutely have permission to keep going. You cannot say, “Oh, this business doesn’t work.” You haven’t been in it long enough. For me, it takes on average 97 days. I think practical advice that I can give is, if it’s been 90 days look for a mentor. If it’s been six months and you have a mentor now and you’re still not figuring it out, either look for another mentor or look for another territory. I, personally, I teach virtual investing. We have a course out. It’s through Wholesaling Inc. You can find out more about it. It’s at www.virtualinvestingmastery.com.
You can learn more about it there. If you apply, someone will contact you, tell you all about me and the course and the coaching program. It comes with six months of coaching and it comes with a online course that’s very instructional to making a virtual market work from A to Z. I coach new investors. I coach seasoned investors. That course applies to all experience levels. If you’re thinking about going virtual, I would, obviously am biased, but recommend my course. But either way, if you are not and say you’re looking in your backyard, I mean, find a mentor. Wholesaling Inc. has amazing mentors. We’ve got Brent Daniels, best in the business. We’ve got Chris Arnold with Radio. I mean, we’ve got some amazing mentors. Tom Krol, Cody Hofhine. Amazing guys. Find mentorship. Figure out what ingredient do you have off in your recipe?
You will see that there will be a change. That ingredient, again, it could be many different things so that’s why you really need somebody skilled to figure it out. Well, anyways guys, I rambled on for a while. I hope you like what you heard today. I hope it was helpful, insightful. If you like what you hear, follow me on Instagram. I post a lot there. My handle’s thismomflips. If you want to learn more about virtual investing, go to www.virtualinvestingmastery.com. I hope you guys follow me, friend request me. Want to hear what you think about this episode. Have a good one. Thanks.

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