If there was one way for new investors to get a good orientation of the real estate market, wholesaling has to be it. One of its biggest catches is that it requires relatively low capital requirements. And unlike a buy-and-hold or reno purchase, no closing cost or downpayment is required.
Today, I’d like to share a few tips on how you can find more wholesale deals irrespective of the market or how well you may be versed with wholesaling.
The secret to every good wholesale deal is to purchase well below market value, considering there has to be ample wriggle room for the end buyer to make a profit, all things considered.
Now, one of the best ways to get a knockdown price is through direct mail. But it is an investment that can only work out if you are familiar with tracking your leads and willing to follow up.
It’s true that it can get pricey when you purchase a large list and mail multiple times. But the good thing about it is it can be tailored to meet your particular needs. You can start by mailing about two hundred or so names a couple of occasions. Ideally, what you want is those types of properties that promise some of the highest returns.
Chances are you will generate a response if you are consistent with your mailing. If it’s your lucky week, you may just find a seller who wants to get out and accept a discount.
Real Estate Meetings
Real estate investment clubs are littered in almost every state. They are places you should toss yourself in regardless of your experience level. Reason is because they happen to be great hunting grounds for wholesale deals.
The thing with real estate wholesaling is that it is a numbers game, and the more outlets you boast for deals, the higher your chances of success. On top of the buyer and seller contacts you are likely to get, you may also get acquainted with methods and techniques for closing wholesale deals you may not have been privy to or thought about before.
There is a little annual fee to part with, but that is nothing compared to the potential benefits that lie in wait. After all, it might take just one of these to totally flip your wholesaling business around. For the better.
Finding new deals doesn’t have to involve shelling out thousands of dollars. You may just unearth plenty of deals in your local market, if you know it well enough.
You can start by purchasing bandit signs in bulk – those small signs you see on telephone poles and in yards? A basic ‘Sell Your Home Today’ or ‘We Buy Houses Cash’ bandit sign might just do the trick and get that phone buzzing.
Bandit signs and positioning are words that go hand-in-hand. A high traffic spot or busy intersection could prove more effective than a direct mail campaign.
FSBO properties (For Sale By Owner) are another fertile local source, with the added bonus of coming with some good discounts. Some of these owners avoid using realtors because they want to save on commission. Some ways to find them include reaching out to all properties in a certain area or purchasing a list of FSBOs.
Both these low-cost marketing efforts are capable of catapulting your wholesale lead catalog.
Social media opened up a whole lot of opportunities everywhere, and real estate and its wholesaling sub-branch is no exception.
You should first have a simple WordPress site in place for your wholesaling business, and while you are at it, remember that it never hurts to keep buyers and sellers on separate sites. With the website in place, create pages on the various social networks – Facebook, LinkedIn, Instagram and/or Twitter.
Be consistent in your posting (without bombarding your audience, of course) touting how you can close on properties in as little as 5 days. If you manage to build a solid following, your posts have the ability to reach hundreds, if not thousands, of people. A few may want to sell or know someone who does, and who knows!
Finding a single potential deal may take you upwards of ten leads. Unearthing that jewel may take twenty or more leads during some quieter months, so do not despair. Just do your part.
Wholesaling can not only be a great avenue to mint some dough, but also break into the real estate market for beginners, or gain contacts for both rookie and established wholesalers.
And these four techniques will guarantee you deals regardless of the market.