TL;DR
- Deal sourcing = finding the intersection of equity + motivation + buy box fit
- Direct mail remains the workhorse, but cold calling accelerates contact
- AI targeting finds "Hidden Gems" — non-obvious sellers that convert at 2-3x standard lists
- Source diversification protects you when any single channel underperforms
- CPD target: Under $2,000/deal with AI-targeted multi-channel approach
Marketing Channel Mix for Wholesaling
Direct Mail: The Foundation
Role: Primary lead generation for most wholesalers
Why it works: - Seller initiates contact (higher intent) - Can target without phone numbers - Compounds over time (recognition builds)
Wholesaling-specific tactics: - Segment by distress type (probate gets different message than tax delinquent) - Include property address prominently (proves you know their situation) - Clear, simple CTA (one phone number)
Timeline: Plan 3-6 months to reach steady-state response. This is a marathon, not a sprint.
Cold Calling: The Accelerator
Role: Speed up contact with high-probability prospects
Why it works: - Immediate conversation (no waiting for them to call) - Can qualify on the spot - Works great as follow-up to mail
Client Results
“We tested AI-targeted lists against our standard PropStream pulls. Same mail piece, same markets. AI list: 2.4% response, 4.1% lead-to-contract. Standard list: 0.8% response, 2.2% lead-to-contract.”
— Dallas wholesaler, 94 deals/year
Wholesaling-specific tactics: - Prioritize mobile numbers (higher answer rate) - Script that identifies pain points quickly - Leave strategic voicemails (not every call) - Track contact attempts per record
Labor requirement: In-house team or trained VAs. Raw dialers without training waste your list.
SMS: Follow-Up Only
Role: Re-engage warm leads and prior contacts
Why NOT primary channel: - TCPA compliance risk is real - Cold SMS increasingly flagged/blocked - Quality of conversations lower than voice
When to use: - Follow-up to voicemails - Appointment reminders - Re-engagement of stale leads
See our [Motivated Sellers guide](/learn/motivated-sellers) for TCPA compliance requirements.
AI Targeting for Wholesaling
Beyond the Standard List
The traditional approach everyone uses: - Absentee owners - High equity - Maybe add tax delinquent
Result: Same list as 10 other wholesalers in your market. Saturated, low response.
The Hidden Gem Advantage
AI targeting identifies properties with high sell probability based on pattern matching across hundreds of data points — not just the obvious filters.
What AI finds that manual filters miss: - Ownership tenure anomalies (why did they keep it this long?) - Behavioral signals (inquiry patterns, listing history) - Market-specific correlations (what predicts sales in YOUR market) - Temporal factors (when are certain owner types most likely to sell?)
Implementing AI Targeting
DIY option: Use 8020REI or similar for AI-scored lists. Feed your closed deal data to improve personalization.
Key metric to track: Lead-to-contract rate by list source. Response rate alone is misleading — you want deals, not just conversations.
Source Diversification
Do not put all your eggs in one basket. Channel disruptions happen (postage increases, carrier filtering, regulation changes).
Healthy channel mix: - Direct Mail: 50-60% of deal flow - Cold Calling: 25-35% of deal flow - Other (SMS, referrals, driving): 10-20% of deal flow
Purchased leads consideration: - Can supplement own marketing - Higher cost per lead, but no ramp-up time - Quality varies dramatically by provider - Track cost per DEAL, not cost per lead
CPD Targets for Wholesaling
Industry benchmarks: - Top 25%: Under $1,500/deal - Average: $2,000-3,500/deal - Below average: $4,000+/deal
What drives CPD improvement: 1. List quality (biggest lever) 2. Multi-channel follow-up 3. Conversion optimization (speed to lead, follow-up consistency) 4. Market selection
Your target: Under $2,000/deal with AI-targeted multi-channel approach. If you are above $3,000, list quality is likely the issue.