Real estate wholesaling can provide financial freedom through a proven business model. However, consistently generating deals requires honing your approach over time. In this article, we'll explore key insights from wholesaling experts David Lecko and Ryan Haywood on foundational techniques as well as pushing boundaries to scale.
The Wholesaling Model
Wholesale real estate involves finding rundown properties, getting them under contract below market value, passing the deals to real estate investors for a fee, and facilitating the closings. It's a straightforward concept that's worked for many, but mastering the execution takes diligence.
Core Team
David Lecko created the DealMachine software to help people close over 10,000 wholesale deals across all 50 states over 7 years. DealMachine's systems optimize outreach for maximum efficiency.
Ryan Haywood got started wholesaling through a 30-day challenge in 2019. He landed his first deal in just 14 days and has now completed over 400 transactions with a thriving full-time business.
Foundational Best Practices
When starting out wholesaling, Ryan and David emphasize sticking to proven methods to build confidence through early wins.
Driving for Dollars
The classic driving for dollars technique involves:
- Logging distressed property addresses in DealMachine while canvassing neighborhoods
- Direct mailing, cold calling, or door knocking homeowners
- At least 6 total touchpoints per lead
This straightforward outreach strategy works if you stay consistent. As Ryan notes, it served as the core of his marketing for the first 5 years of his business.
Expanding with New Approaches
Once consistent monthly deal flow is established, exploring new strategies can uncover growth opportunities while continuing what already works.
360° Marketing
Ryan recently introduced an expanded driving for dollars approach called 360° marketing:
- Door Knock: First attempt face-to-face contact
- Leave Door Hanger: Quickly follow up if no response
- Call/Text: Leverage DealMachine data to call/text the lead
- Direct Mail: Send personalized mail as the 4th touchpoint
This layers in more contacts per lead to increase response rates by trying multiple formats. DealMachine helps track status as well.
Key Takeaways
- Beginners should focus on proven lead generation methods and sufficient touchpoints.
- Advanced wholesalers can layer in new strategies while continuing the basics that work. Monitor spending and responses to gauge ROI.
Wholesaling takes work, but with the right systems in place optimizing your deal flow, the financial freedom makes it worthwhile.
About Benjy Nichols
Benjy has been a media specialist at DealMachine for the last 2.5 years. He produces, writes, shoots, and edits our media content for our member's DealMachine and Real Estate education.