If you decide that you want to go into the wholesaling there are a few important strategies to know when you are just getting started. If you implement these strategies you will have far less of a beginner’s learning curve!
First of all, you have to define your target market...
Who is your target market? Supply and demand is so important.
When you get started, optimally you have Time and Money. If you have time, but no money you can succeed but your strategies will be different. If you have Money but no time you will have another strategy. I am going to cover both.
Strategies for ‘No Money, but Plenty of Time.’
I cannot emphasize enough how valuable networking is. Network with real estate agents, network with other people that you know, go to church and talk about it. That whole secret identity you’ve got? Get rid of it, start talking about what you're doing! ‘Hey, I'm looking for distressed properties. Have you seen any? I'll pay you referral fees if you find me one.’ In all the places that you live and work start talking about what you do and actively look for deals.
- Cold Calling/ Door Knocking
When you guys go for a walk, go for a walk in different areas around different neighborhoods If you're looking for distressed houses, talk to the people that are outside. There's a lady or a man in every single neighborhood that knows everything that's going on in the neighborhood and whether or not an eviction, or some sort of domestic unrest may lead to a quick sale. When looking at probate code violations, boarded up houses, vacancy, tax, evictions, all these niche lists, go knock on some doors, find somebody's phone number, and give them a call.
How many unread text messages do you have on your phone right now? A Couple most likely. How many unread emails do you have? 30,000, 50,000? And how many unread voicemails and phone calls do you have, unread Facebook messages? You have significantly less unread text messages. Put yourself in their shoes, how are your potential sellers consuming information?
Texting tends to be highly successful because it is an avenue used less by other sellers.
- Driving for Dollars
Quite simply, do what others are unwilling to do. You guys are probably looking at some of this, like I'm not going to drive around and knock on doors, it's uncomfortable. But what other people are uncomfortable doing, is where the money lives.
Bottom Line: DO WHAT OTHERS ARE UNWILLING TO DO. DO WHAT IS UNCOMFORTABLE.
Strategies If You Have ‘Money But Not Enough Time.’
1. Direct Mail
This is what I started my business on in the ‘money but no time’ category. I pulled lists off equity and marketed to them using postcards and letters. Below are a few easy ways to find alternative lists.
2. Google AdWords
Finding buyers through Google Ads when you google key words. Sponsored ads pop up and without clicking on them you can take down their names and begin creating your buyer’s list!
3. Facebook Ads
It works the same way with Facebook ads and once you are searching, the algorithm will feed you more markets of interest.
4. Big Media
This is TV ads, billboards etc, and honestly it’s too expensive for most wholesalers in the early days, so I recommend going to another market first. For this I recommend Listsource.
ListSource is a site that aggregates data and I can go buy it from them legally. You can go to the site and pull sellers information and homeowners information. If you ever wonder ‘why am I getting all this junk mail?’ somebody's pulling your data somewhere and buying it. With this site I can use age, I can put the price of a house, I can put zip codes, I can draw a map, I can get as deep in some of the data as potentially credit score, job etc. to define my demographic and it is all completely legal.
If you properly resource your time or your money, you are off to a solid start as a wholesaler.
If you have both time and money, implement both strategies!
For more tips and strategies listen to our podcast at 7Figure Flipping and stay tuned for more helpful blogs.