Hey I’m new to the wholesaling business and have been researching like crazy to see how I should begin. I thought i would go the pre-foreclosure route, but MD laws make it very difficult to do . Then I thought I would try going the Probate way, but I’ve read here that not many people have found it successful. I’m just trying to figure out who I should start targetting to get moving. I just can’t get a grasp on it. What type of leads should I be looking into? Any help would be appreciated.
Currently I am marketing to the six primary prospect groups…
Pre-Foreclosures
For Sale by Owners
For rent by Owners
Expired agent listings
Farms
and center of influence.
Everyone seems to be in one of those groups…
If I were going to add a on purpose group or groups I would add probate and divorcees
As for your farm I am currently marketing to free and clears and 5 year old ownership without refinancing and 200 houses around a recent purchase…
There is a lot that goes into a good campaign to get sellers to sell at pennies… You have to decide what your entrance and exit strategies are, what your prospect represents and what your budget can consistently perform at.
A lot of investors don’t have a marketing budget and if that is you then you will definitely need to learn the Zero cost marketing approach…
You can start off by driving your farm area and writing down the addresses of vacant properties. Then make a research and find out who the owner is, and then send them a letter or call them. Vacant property owners are sometimes motivated as they’re paying property taxes and city housing violation fines.
Be careful with pre-foreclosures. Maryland has very strict law regarding contacting homeowners in foreclosure (google “SB 761” if you want more info).
I am also in MD, feel free to send me a PM with any questions.
PS Every time I post a flyer, I get at least 2 phone calls from the sellers. So you might want to consider that as well.
Working with as many investors as I do (in the marketing end of it), I know that vacant houses are a totally untapped market. I’m not sure if people are just too lazy to drive for dollars, or if they are just uncertain about the quality of these leads.
Listen, if there is a house sitting vacant, it is vacant for a reason. Noone likes to own a vacant house, especially one that is in distress or in need or repairs. By taking the time to drive around the “bread and butter” neighborhoods, you will discover a GOLD MINE of properties. Write them down. once you get back home, look them up in the tax records to obtain mailing addresses. Then mail them a yellow letter (or whichever type of marketing you are working with).
I am certain that upon receiving calls from these property owners, you will work a deal out and the numbers will be grand.
I too am in MD. Due to the state of the market I’m actually finding good deals on the MLS (MRIS)! I’m working with a Realtor right now to make an offer of on a junker property in Gaithersburg that is listed for just over “MAO.” They’re there. Believe me.
However I do have a question, perhaps Sniper or someone else can answer this. Buying listed properties means a double closing (Realtor’s contracts are non-assignable). Does this mean double transfer taxes? MD has a prohibitively high transfer tax rate. If I get a listed property under contract to wholesale, how do I get rid of it without there being two sets of transfer taxes? Unless I’m missing something. There’s got to be a way around this.