BiggerPockets

Lead Generation Is The Key To Successfull Wholesaling

In order to properly make it in the wholesale business you need to have leads that can be sold for a slight mark up. If you contract the house and sell your contract then you can add whatever fee that is reasonable without scaring away the buyer.

The ideal buyer is an investor that has cash and doesn't need to wait weeks or even a couple months for financing. Cash buyers are just part of the crop but if you have a few on your team then you can easily sell 8-10 contracts within the next year.

You won't find out how to find wholesale buyers in this article, but you will pick a few nuggets to find deals to assign to a cash buyer. There are a few ways to generate leads to wholesale, since there is an abundance of buyers looking for bargain properties.

First you must determine the type of properties wholesale buyers are looking. A few terms you want to get familiar with are rehabs, fixer uppers, handy man specials, wholesale deals, investment properties are just a few that you need to learn the meaning too.

Once you determine the type of deals or properties, now you need to figure the options to get your name out there to receive leads. You can advertise in the newspaper, internet, radio or television. Each form of advertising has it's purpose. It is best to target a group of people that will generate the type of properties you can sell fast.

Each advertising media will get your name in front of an audience. If you choose to place an ad in the newspaper you can expect to pay a large sum for your ad to run one month. When placing a newspaper ad you want to have the most unique ad and plain text just want get it.

The internet is one of the best methods to generate leads, after you set up your resources. Websites and other sites can bring in hundreds of leads but the time it takes to set up can range from 800-1,000 hours. The most cost effective method of generating leads can range from either method whether you choose radio, television, internet or the newspaper.

The newspaper can generate some really good leads but a properly placed TV ad or Radio commercials might give a better bang for the buck. TV commercials can be really cheap especially if you have your house camera and radio is as simple as writing a script for someone with a professional type of voice.

Investors that really want to become successful at wholesaling should use as many of the methods mentioned at the same time to develop the best source of leads.

Comments

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  Account Closed — over 2 years ago

  You mean that you actually have to put the property under contract? What a novel concept. A lot of "wholesalers" in my market send over flyers containing properties that are being marketed by realtors on behalf of HUD and the banks. Others will send the holdings of other wholesalers, marked up at 25% or more. LOL I have even had a few send me deals on properties that I already own or have under contract. Anyway....excellent article!

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  John Forbes — over 2 years ago

  Very good article. This information goes for All areas of the country. you need to be able to network in order to succeed in this business.