Every real estate investor knows that wholesale real estate lead generation is crucial to their success. It is nearly impossible to make it in wholesale real estate without numerous quality leads. Wholesaling is about finding motivated sellers and undervalued properties. You need to be able to get in and out of the real estate deal as quickly as possible to ensure the most profit.
Wholesale real estate investing is a risky venture. If you are not able to purchase and sell your property quickly, you are sacked with the financial burden of property ownership, including taxes, mortgage payments, utilities, property maintenance, etc.
Therefore, wholesaling is all about lead generation. Still, is lead quality or quantity more important?
What Is Lead Quality?
Lead quality speaks to the value and feasibility of the lead. To determine lead quality, you will need to find real estate comps and research the local market. A quality lead will represent an undervalued property in a hot market, meaning there is significant potential for a quick turnaround.
The detriment to any wholesaler is having to hang on to a property. The wholesaler wants to get in and out without having to take ownership of the property. If a lead does not allow that quick turnaround or increases the risks of property ownership, it is not a quality lead.
What Is Lead Quantity?
Lead quantity is exactly what it sounds like; it refers to the number of leads you have. Quantity is different from quality, but you need quantity to find quality in most situations. When looking for motivated seller leads for wholesalers, you do yourself a disservice by limiting the number of your leads. Finding quality is usually about sifting through a dozen or more potentials for one ideal investment opportunity.
Therefore, the more leads you can generate, the better your odds of locating a worthwhile house on the market. If you use a lead-generating service, you might have better odds of finding quality leads with fewer leads.
Which Is More Beneficial?
It is more beneficial to your business to have quality leads because those are the leads that can pan out with a profit. However, you can not find adequate quality leads without a number of prospects. Therefore, both quantity and quality have merit.
In one sense, the more leads you have to sift through, the greater your potential of finding several quality leads. Additionally, with more leads, you allow yourself to develop more relationships that can turn into quality leads in the future. However, if you use a service that helps identify quality leads for you, it is possible to avoid the workload that comes from quantity.
Lead generation is a critical aspect of wholesale real estate, and the quantity and quality of leads are like the yin and yang of the process. If you want more information about the benefits of quantity and quality, consider reaching out to a local lead generation service.