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Dispo-Only / Marketplace Model

From the desk:Dispo-Only / Marketplace Model

What does it actually cost to start on the dispo side

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Trying to price out a start and the dispo model keeps coming up as the cheap entry because you're not buying anything and not paying for marketing to find sellers.

My count so far: a phone, a CRM of some kind, maybe 50 dollars a month, and gas to go look at properties buyers ask about. Call it 100 a month and my time.

Compare that to acquisition where people talk about 2k to 5k a month in direct mail and skip tracing before a single contract.

That gap seems too big to be real. What am I not counting? My assumption is that the hidden cost is time to build the buyer list and I don't know how to put a number on that.

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1carlos_nunezActive

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The gap is real on cash and fake on total cost. You're right that the spend is close to nothing. What you're paying instead is months of calls where nothing closes.

My first six weeks of buyer building was maybe 120 calls and coffee with nine people, and I sold zero contracts in that time. If you value your hours at anything at all, that's a bigger number than direct mail. Difference is you can do it while working a job and you can't do that with a 3k a month mail spend.

Things you left out: earnest money. Some deals you'll want to protect a contract or a buyer flakes and you're covering a deposit to keep the deal alive. Not every time, but budget a few thousand you can reach or you'll lose a deal at the worst moment. Also a title company or closing attorney relationship, which is free but takes real effort to build, and you need it more than you need a CRM.

What does it actually cost to start on the dispo side

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