It can be challenging to find deals when you are first getting into real estate wholesaling. You are just learning this new career and want to do everything correctly. But getting those first few deals under your belt will do a great deal for your knowledge and confidence levels. However, many new wholesalers are unsure how to find those crucial early deals to get their career off on the right track. These five methods are proven to get results for both new and established wholesalers looking to close some deals.
Driving For Dollars
By the time that you are ready to find your first deal, you certainly know what a distressed property looks like. Tallgrass, broken or boarded-up windows and homes in a general state of disrepair are all excellent examples of a potentially distressed property. Write down those addresses and then start your homework. The tax assessor’s website will provide you with the owner of the property so that you can begin the process of making contact and making an offer.
These trips through the neighborhoods are a great way to see the area, view comps, and determine what buyers will like or dislike about the area. All of this information will be useful when you look for a buyer for your new deal. This process is about the most cost-effective way to gather information and potential properties.
Bandit signs are the simple signs that you place around the area to get your name and number out there. The signs are very affordable and are meant to grab the eye of anyone who is looking for a fast cash buyer. The only downsides are that the signs can be removed or destroyed. And you should always check local zoning and regulations regarding posting signage.
A few other ideas to blend into your bandit signage campaign, you can pay a small percentage to other people for placing your signs. The only thing to be careful about it using various numbers to track whose sign generated the call to your business. Keep your signs simple and go for large numbers in areas with indications of many depressed properties.
Network With Mentors
The entire real estate business centers on relationships. You are working with people, and the more people that you know, the more potential deals could come your way. Networking events are a great way to maximize the number of people you are interacting within a short period of time. And an added bonus is that some of the people that you meet will become trusted resources and mentors.
In addition to networking within the industry, look at every person you interact with each day as a potential client or connection to a deal. You will be amazed by how often someone will reach out to you to pass on the name of a friend or family member who is looking to sell a property quickly for cash. Each day offers the potential to begin several new relationships and to build your reputation as the go-to wholesaler in your area.
To get the most out of direct mail, you need to consider the 80/20 rule. This rule states that 80% of your results come from 20% of your effort. Direct mail targets a list of potential sellers who are motivated to make a cash deal. You can focus on demographics such as age, zip code, income level, or location. And the process is very simple when you hire a company to create and process your letter or postcard mailer. By sending out a large number of mailers, you increase your success and still have very little labor involved in the process. Hopefully, this 20% of your effort will generate 80% of your deals.
Social media is a super popular tool that can be free or very cost-effective. The free version of this approach relies on your network to repost and forward your ads and comments on social media. Paid programs will cast a wider net, but will require a certain level of financial investment. Remember, a quality ad will move exponentially across the Internet at the speed of light.
When it comes to creating your ad, there are a variety of sites that offer free tools. You can also work with a professional to create or design a plan for your ads or create a template for you to populate for each new ad campaign.
These are just five options to get your name out to the people who are looking for a wholesaler to buy their depressed property. The important thing for you to remember is that you need to keep busy and try a variety of actions to determine what works best for your market and your business model.