Summary of "How To Scale From $0 to $300K/YR Wholesaling Real Estate [Step by Step]"
Summary of "How To Scale From $0 to $300K/YR Wholesaling Real Estate [Step by Step]"
The video presents a detailed breakdown of how to generate approximately $300,000 per year wholesaling real estate by focusing on making consistent offers to motivated sellers. The core financial strategy revolves around volume, efficiency, and leveraging virtual wholesaling tactics with a strong emphasis on cold calling, texting, and direct mail outreach.
Main Financial Strategies and Business Trends:
- Target Goal: Make $25,000 per month or $300,000 per year through wholesaling.
- Volume-Based Approach: Achieve this by making around 100 offers per year to motivated sellers.
- Conversion Rates:
- 100 offers → ~50 contracts
- 50 contracts → ~35 deals closed (sold)
- Average Profit per Deal: Estimated at $10,000 per deal, leading to about $350,000 annually.
- Lead Generation: Roughly 3,000 calls/texts are needed to generate one lead, and about 4,500 calls/texts to make one offer.
- Efficiency Metrics:
- Each call/text generates approximately $0.77 in revenue.
- At 60 calls per hour, potential earnings are about $47/hour.
- Cost Structure:
- Using X Leads software for data, CRM, skip tracing, and dialing costs about $24/month.
- Hiring virtual assistants (VAs) at $6/hour to handle calling can scale operations efficiently.
- Annual marketing and operational costs estimated at $46,000, yielding about a 7.6x return on investment (ROI).
- Scaling Up:
- Increasing average deal profit to $15,000-$20,000 can boost ROI to 11x-15x.
- Starting with one no-cost deal (using free methods like driving for dollars, cold calling) can fund the paid marketing system, creating an "infinite" return on investment.
- Marketing Channels:
- cold calling, texting, direct mail, driving for dollars, reverse driving for dollars.
- Use of skip-traced lists (e.g., X Leads) for targeted outreach.
- Business Model Insights:
Step-by-Step Guide to Scaling Wholesaling Real Estate:
- Start by making offers to motivated sellers: Aim for 100 offers per year (~8-9 offers/month).
- Generate leads: Make approximately 4,500 calls/texts per offer using targeted lists.
- Close deals: Expect about 35 deals from 100 offers.
- Calculate earnings: At $10,000 profit per deal, expect $350,000 annually.
- Use software tools: Invest in a dialer and CRM system like X Leads (~$24/month).
- Outsource calling: Hire VAs at $6/hour to handle calls and texts.
- Reinvest profits: Use first deal’s profit (about $10,000) to fund marketing (~$3,800/month).
- Scale operations: Increase deal size or volume to improve ROI.
- Expand marketing: Once stable, add paid lead generation strategies (PPC, PPL).
- Maintain consistency: Keep making offers and refining the system to grow revenue.
Presenter:
- Zach (host and wholesaling expert)
Zach shares transparent math and practical advice, demystifying wholesaling real estate as a scalable business with predictable returns. He emphasizes persistence, volume, and leveraging virtual tools and VAs to build a profitable wholesaling operation from zero to $300K+ annually.
Category
Business and Finance
