What is Deal Flow?
Deal flow refers to the rate at which investment opportunities are presented to or generated by an investor or company. In wholesaling, deal flow is the volume of potential deals entering your pipeline — from initial lead to signed contract. Consistent deal flow is the lifeblood of a wholesaling business. Without a steady stream of deals under contract, there is nothing to sell.
Sources of deal flow
Direct mail, cold calling, PPC advertising, SEO, driving for dollars, bandit signs, door knocking, ringless voicemail, networking with agents, probate court records, tax sale lists, and referrals from past sellers. Most successful wholesalers use 3-5 channels simultaneously.
Deal flow metrics
Leads generated: Total inbound contacts per month.
Qualified leads: Leads where the seller is motivated and the deal has potential margin.
Contracts signed: Deals put under contract.
Deals closed: Contracts that actually close with a buyer.
A typical wholesaling operation might generate 100 leads to get 20 qualified leads, sign 5 contracts, and close 2-3 deals per month. These ratios improve with experience, market knowledge, and better lead targeting.
Deal flow quality vs quantity
More leads is not always better. 50 highly qualified leads from targeted skip-traced lists will outperform 500 unqualified leads from a generic source. Focus on lead quality (motivated sellers, deals with margin) rather than pure volume, especially when you are getting started and cannot handle high volume yet.