New investor with an extensive buyers list but no deals. How can I find more dea

General Real Estate Investing
1

Hello everyone,

I would love some advice from anyone on my wholesaling techniques. So I started wholesaling a little bit over two months ago and so far I have not closed my first deal. I have been building my buyers list and this has been going great because I have good relationships with some who are eager to buy at the moment. I have about 20 good cash buyers I say.

My downfall however is finding properties for them. I constantly check the mls for homes, craigslist, and have partnered with other wholesalers who have deals but none of my buyers liked their deals.

I am looking for homes in the Maryland area and would like a direction I could go into to find more deals.

Should I find a realtor to put in offers on foreclosures?
Send out more postcards?
Check the housing code violations list.

Lastly how can I get a binding contract with a homeowner with convincing them that I will not place more than $100 in escrow for the contract. And not a $1000 deposit.

2

Smart thing you are building your buyers list first.

you’d think that 20 buyers is enough. But unfortunately it is not. Buyers are very specific. Some like 2 bedroom houses . other only like 3 beds with 1500 sqft+ some want them in different prices ranges and in certain condition. So, keep adding buyers to the list! You’ll never have too many buyers.

finding motivated sellers isn’t easy… what kind of responses are you currently getting with the marketing you are doing? have you tried bandit signs? yellow letters? REO’S?
the list is important too… who are you sending the mailings to? how accurate and updated is the list?

never give moeny to the seller… instead say you’ll put $500 in escrow with the tittle company… that is only if they mention it, if they don;t just put down whatever.

3

Hi,

Maryland has one of the best real estate markets in the country so working this market will be tougher than working a state with less demand.

I am maybe the only experienced investor who regularly champions “Selling Wholesale Properties to Retail Mom and Pop Buyers” (Owner Occupied Buyer) as regular buyers can and will appreciate a property you offer them for some percentage below retail full market value. Normally I try to sell these folks a property at least 10% below FMV to give them real reason to buy your home.

I always keep “General” marketing ads going saying “For Sale Beautiful Home in Baltimore with Great Schools, easy access to the freeways and lots of retail stores and food choices, 3 bedroom / 2 bath with full partially finished basement on huge lot call Gold River at 555-777-1234”. I do a 2 to 6 bedroom / 1 to 4 bath combinations ads going in my regular markets and I get a lot of calls every week.

Then after getting the callers phone number I tell the caller "That property has already gone to contract however my program typically gets buyers into homes at least 10% below FMV and I can typically find you a great home in less than 2 weeks. (X Weeks) Typically providing at least a $20k (What ever 10% in your market is?) savings on local market prices, would you and your wife be interested in working with me? Then I use a questionaire to ask a bunch of questions when someone calls so I have exact information as to what their looking for and can go into the local market and find it.

Keep in mind to Wholesale to an investor in Maryland you probable have to offer the property at least 25% below FMV for a pristine move in ready updated home in great condition, then if the house needs rehab, remodeling, updating, etc. you will need to estimate the cost of these repairs and deduct it from the pristing market price, then of course you have to fit some kind of profit for you into the picture.

I also reverse market my fellow wholesalers properties by describing and marketing them to my retail buyers, if the property sells by the time you get a phone call use the method above, but if you know it’s still available then you can move to show it, then tie it up and close it for a tidy profit.

It is much easier to find a great home for a “Owner Occupied Buyer” as in most cases buyers will make some compromises to save 10% plus below FMV.

Money is money it does not matter whether it comes from an investor or from a couple looking to buy their first home, it all spends exactly the same and is in most cases easier to wholesale to an end buyer (Owner Occupied) as you don’t need to have as big of a margin to re-sell it.

By selling wholesale properties to end buyers you can also set up a contract to either “Assign or Double Close” at a little higher price then you would typically buy to wholesale to a fellow investor. Run ads which say “I Buy Home’s, I Can Typically Beat Other Home Buyers Offers” you can beat them because you can sell them to Mr. and Mrs. Smith or Mr. and Mrs. Jones as Owner Occupied Wholesale Buyers!

              Gold River
4

Mark

For you to be a successful wholesaler I recommend you study sales and marketing.

After studying sales and marketing, implement what you learned immediately (and continue to educate yourself). I recommend direct response marketing. This means identify a targeted list of people (ex. probates), and create a direct response message to them via letters/postcards (don’t just mail to them once).

Good Luck