Really Good Wholesale Strategy for Newbies & Vets

Bird Dogs, Wholesaling
1

[b]Recently I have been getting questions from folks just starting out in the Wholesaling niche having trouble finding buyer’s (marketing) for their deals and determining values. I really can relate to these 2 hurdles these people are encountering. When I first started just like a lot of other seasoned house flipper’s encountered some of the same road blocks.

There are a couple of ways to get over and around these road blocks and hurdles. Here are a few that I know work.

Get on some of the other Wholesaler’s buyer list in your marketplace. And get familiar with the neighborhoods they are selling properties in. Most seasoned wholesaler’s always list the ARV, Pics, Repairs, Description and may even show a list of comparable sales. You will learn their business rhythm’s and this will help you model their success.

At the same time you will notice some of the wholesaler’s in your respected marketplace’s online and offline marketing strategies. From using online classified, email marketing to the signs that they place on the property.

After a few months on their buyer’s list you should be able to determine what the wholesaler’s are selling their properties for which will help you determine how much you need to market and sell your deals for. How to properly market your deals and as for getting your properties SOLD simple contact the Wholesaler’s you have been following and structure a Co - Wholesale deal with them were you split your profits 50/50.

How do I know this works when I started Flipping Houses in 2004 I subscribed to the 2 biggest wholesaler’s in my marketplace’s buyer’s list and studied them for about a year while sitting a t my cubicle before I flipped my first couple of deals before I left my J.O.B. And now there are NEW wholesaler’s in my marketplace doing the same with us.[/b]

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Hi,

That's pretty good information!

But first and foremost I always tell aspiring wholesalers to find and create two buyers lists:

  1. The list of investors in my area seeking residential properties and what they are specifically looking for and in what area?

  2. The list of potential owner occupied buyers who are searching for properties, would love a good deal (walk in equity) and are looking to buy in the next 14 to 60 days! I always get just as much information as possible including neighborhoods, beds and baths, amenities, lot size, garage size and additional custom features! I also make sure the owner occupied buyer has an approved mortgage, if not I refer that potential buyer to my mortgage broker on my team! (This list is always evolving and changing as someone looking for a home is only a good lead for a limited period of time.)

Then I go out and find properties that meet my buyers needs! If a real estate agent / broker / brokerage can not find buyers for a new listing in 10 to 14 days you sure can’t so buying a property and then finding a buyer without a list (Blind) just does not work and has little chance of success!

But I use every possible source of property including Auctions, FSBO’s, Listings, REO’s, Short Sales, Tax Sale Auctions, Distressed Property, Out of State Owners / Investors and Wholesalers / Banks / Lenders, Trusts, Institutional, Corporate and Portfolio property disposal’s!

I don’t split my wholesaler’s profit margin in the deal, most of my wholesalers are selling below a 35% discount and there is always room to put an assignment fee on top of the wholesaler’s price!

The wholesalers I know pretty much keep there margins lean as they want quick sales and to turn properties quickly!

                     GR