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Need Your Feedback On Value Of Site To Sell

by onpointinfo
6 replies
I have an existing website that generates leads for private money loans, it generates monthly leads of people asking for a private hard money loan, so now I am thinking of selling it and would like to know what is the value of this site if it generates roughly 30 leads per month to someone that is in the business and brokers or actually does the loan them selves personally ?


The loans usually are in the range from 100k to 300k for the nyc area with a high interest since these are risky time sensitive loans so they can potentially make 6 % upfront fee of total loan amount and then 12-16 % interest for a 1 year loan.

Example:

On a 200k loan they would make 200,000 x 6% = 12,000 Upfront Fee + Interest of about 32k for 1 year term so they can make some nice money from closing one loan ! They should be able to close 1 loan from the leads per month roughly or 1 every 2 months !

Note:

Not sure if I placed this in right area if I did not let me know and will change it if I can !
#feedback #sell #site
  • Profile picture of the author Alex Blades
    Hard to say, without knowing how many of those 30 leads actually converts into loans.
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  • Profile picture of the author brutecky
    If you are expecting the people to make the loans themselves then its worth nothing/
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    • Profile picture of the author onpointinfo
      Not sure if you know what are hard money loans, these are real estate asset based loans, whether they are brokering them or doing it themselves they both need leads to close up on loans so they are worth some thing and not as you say they have no worth since the direct lenders have to go to people like me to find these deals at a cost so if they get them on their own there is more money in it for them on certain deals
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      • Profile picture of the author Steve B
        Onpointinfo,

        You have said that your site generates 30 leads/month. What kind of conversion is that? (Total unique visitors per month/30) The number will help you to understand what percentage of visitors are doing what the site was intended for (generating leads).

        How much income is the site generating? Are you selling the 30 leads per month that you're getting? Or are you sending the leads to lenders and making a commission? Either way, you should be able to tell how much each lead is worth.

        Once you know your conversion rate and your earnings per lead, you will have some hard numbers on which to base a justification for a particular value (price) for your web site. Otherwise, you're just pulling some number out of thin air.

        Good luck to you,

        Steve
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  • Profile picture of the author onpointinfo
    Keep in mind they have to advertise for leads any way, whether it is using google adwords which is quite expensive if targeting keywords for the nyc area which I rank on page 1 for local targeted keywords

    Further more , they would have to advertise offline as well via newspaper ads or do mailing to generate leads

    In other words to generate hard money loan leads - there is some value regardless whether they close loans or not, that will be based on different factors on how many of those leads they close, for that matter if they are not generating leads then they do not have anything to close.

    So there is value in having people calling you period asking for money ranging from 100k to several million dollars these are fresh leads calling your phone number and you are not buying these leads from some lead generation company which I could be also selling them the leads for a certain fee ?

    So now... figure on this if they had to advertise on google adwords they would be paying roughly 450.00 to 650.00 per month for the same leads so this is a savings of this amount on a monthly basis per year no advertising cost on google adwords assuming 450 x 12 = 5400 advertising cost per year which does not guarantee deals but increasing the chances to close deals because without leads you have no chance at all at getting a deal period !

    There is a cost for advertising, the saving is they have a website that will cost them about 120.00 a year for hosting and it generates leads for them for 10.00/mo vs 450.00 approx. per month
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  • Profile picture of the author Alex Blades
    Keep in mind they have to advertise for leads any way, whether it is using google adwords which is quite expensive if targeting keywords for the nyc area which I rank on page 1 for local targeted keywords
    You have a point, but it's only 30 leads per month. You are better off talking to brokers and see what the site is worth to them. They will know how well they can convert leads, and how much each lead is worth to them.

    If you run into a broker who can't convert worth a ish, the site will be worthless to them, but if you contact a broker who is killing it, you maybe be able to sell it to them for a nice piece of change.
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