Please Help! We’re wholesalers in Phoenix, AZ. On occasion, our web advertising (Google AdWords) results in people located outside our preferred marketing area to submit their home/land for sale. Also, there are homes we come across without enough spread for both the wholesaler and investor. We are looking to either (1) sell the leads outright to investors or (2) get them under contract ourselves, then sell the contract to investors for a finder’s fee. What do you think?
As for (2) above, we’d like to get investors interested BEFORE placing the property under contract. What are your thoughts as to speaking with investors as though the contract is ALREADY in-hand when, in fact, it isn’t? Is this way out of line as far as ethics are concerned?? I want to ensure we do the right thing without shooting ourselves in the foot. Your reply would be very much appreciated. Thanks!
I would go to your local REI club and network, find out what other investors might want, and go from there. you can either put it under contract, or just sell the lead.
What level of success would you give your advertising with AdWords? It seems that most folks I work with barely have internet access, so I have hesitated to use AdWords thinking it would not attract the motivated sellers.
Well, I did a little research and came up with charging a “finder’s fee” of either a set amount or a percentage of the purchase price. I found a fee agreement model online, so now instead of sitting on these we can move forward with selling.
As for AdWords, we’re getting at least 5 good leads per week. If you’re thinking about it, I would recommend hiring a web designer (instead of your spouse’s cousin’s little brother! ;)) and using the Jump Start option with AdWords. Basically, you give them $300 up front and they’ll put together a couple of ad campaigns for you. Then the money is credit to your account which pays for click-thru’s. If all of this sounds Greek, please read-up on it at Google–they have a ton of great free info online!
I know what you mean about motivated sellers online…would they be there? Our site began as a back-up to other advertising campaigns, but has surfaced as the #1 source of leads for now. There are motivated sellers EVERYWHERE, even online! About 65+% of American households now have computers, and most have online access. Others have access at work. There are people with $300, $400, even $500k homes who are desparate to sell for whatever reason. But you really have to get on AdWords (or perhaps Yahoo’s version), write great ads, and be willing to pay for click-thru’s.
I’m very interested in your deals. I’m actually a nationwide homebuyer and I will take a look at anything that makes sense.
Can you give me an example of some of the deals you can bring. Location is not an issue.
Thanks.