Real Estate Wholesaling

4 Ways to Generate New Wholesaling Leads That Actually Work

Expertise: Business Management, Personal Development, Real Estate Wholesaling
59 Articles Written

The internet is filled with tons of information on how to generate new leads, and a lot of times when you’re first starting off, it can be a challenge determining which lead generation strategy will actually yield results.

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

Let me first ask you this: Do you have time and money to blow on experimenting on new strategies that may or may not send you high quality leads?

Yeah, me neither.

So what I’ve done is come up with the top four most affordable lead generation strategies you can utilize in your wholesaling business. These strategies have yielded me great results, and I hope they do the same for you.

So with that, let’s jump into today’s post!

4 Ways to Generate New Wholesaling Leads That Actually Work

1. Make Offers on the Multiple Listing Service (MLS)

The Multiple Listing Service (MLS) is an online database of properties that are currently on the market and properties that have been sold. This database is exclusively available to real estate agents, so you’ll need to have your real estate license in order to gain access to this database.

But I want to emphasize these four letters.

F-R-E-E.

Yes, the MLS is free!

This is one of the many reasons why the MLS is a great lead generation strategy.

Now, there are general fees and dues you have to pay prior to receiving your license, but once the dues are paid, you’ll gain access to the MLS, giving you access to leads right at your fingertips!

What’s also great about this strategy is that you can automate it and have leads sent directly to your inbox.

laptop-listings

Now, I have to be honest with you all—this strategy requires a lot of time and effort.

In order to see a high success rate with this strategy, I would recommend putting in about 20 offers per week in order to close on one to two deals a month.

See, that’s another great thing about the MLS. There are no limits on the number of offers you can make. You can make as many offers you want! It’s up to you to put in the work and make something happen.

Now, despite the fact that you’re going to spend a lot of time scrubbing through hundreds of leads in order to find that diamond in the rough, it’s totally worth it. And it’s a great lead generation strategy if you don’t have a marketing budget.

Related: How to Master the Most Important Skill in Wholesaling—Talking With Sellers

Say your average deal is $3,000. If you’re bringing in one to three deals a month from the MLS, you can easily make between $3,000-$9,000 a month. I know several veteran wholesalers in my market who have had high success rates utilizing the MLS as an ongoing lead generation strategy.

Also keep in mind that once you have extra money, you can always hire a virtual assistant to make offers for you on the MLS. That’s why it’s extremely important to have your real estate license as a wholesaler—because this is definitely a strategy you don’t want to sweep under the rug!

2. Making HUD Offers

HUD is another free online lead generation strategy. The United States Department of Housing and Urban Development (HUD) manages a host of deals that are called real estate owned properties (REOs). REOs are bank-owned properties that did not sell at a foreclosure auction.

Now, remember—banks have zero interest in owning and maintaining real estate properties, so they want to liquidate the asset immediately by selling the property at a lofty discount through HUD.

Unlike with the MLS, you don’t need a real estate license in order to gain access. You can simply set up an online profile and begin making bids on an endless supply of properties in no time! Still, this strategy also requires a lot of time and effort. So you’ll need to make a minimum of 20 offers per week to get one t two deals per month.

But just think about this…

If you close two deals from the MLS and two from HUD at a conservative $3,000 a pop, you’ve easily made $12,000 a month!

3. Making Offers at Online and Offline Auctions

Real estate auctions are a fantastic way to generate new leads and find deals; however, there’s a lot of risk involved with bidding for properties online, and the ultimate success of this strategy solely depends on your capability to analyze a deal properly.

In most cases, you can’t inspect the property and gather rehab costs until after you’ve already purchased it, leaving a lot of room for surprises and unexpected rehab costs. Although there are risks involved, don’t be afraid of them!

Do your due diligence by researching the various online real estate auctions out there. Take the time to really learn how this strategy works and start bidding on properties. If you learn how to properly analyze a deal, real estate auction bidding is a great lead generation strategy if done the right way!

4. Using the Power of Networking

networking-meeting

I can’t stress how important it is to leverage your network as a lead generation strategy. The old saying goes, “It’s not what you know, it’s who you know.” You’d be surprised by the number of properties that will fall in your lap simply because an investor doesn’t have time, and is willing to sell the property to you for dirt cheap. 

That’s why it’s important to have your face and name out there in your real estate investing community as much as possible! You can do this by attending a local real estate investor meetup at least once a week.

I would also recommend utilizing BiggerPockets as a networking tool. This is a great way to find and connect with other investors in your market. Be active in the BiggerPockets community by participating in forum discussions and commenting on blog posts.

You can even go as far as creating your own real estate investor monthly meetup group. Think outside of the box! There are so many ways you can network with other real estate investors.

Just think about it. If you constantly put yourself out there as a real estate wholesaler, the top flippers, the top
buy-and-hold investors, and the top wholesalers in your market will send leads at the drop of a hat.
Networking is such a crucial asset to your wholesaling business and a great way to generate leads!

Related: How to Stand Out From Other Wholesalers by Developing a 5-Star Reputation

Conclusion

So there you have it: These are the top four lead generation strategies with proven success!

These strategies don’t require a lot of money, but they will require a lot of time and effort, so don’t expect these strategies to work overnight! Trust me, I know that submitting hundreds of offers on the MLS, HUD, or other online auctions sounds a bit boring, but you have to stick with it.

Don’t be afraid to put in a little sweat equity to grow your business. If you need to start off with just one of these strategies and work your way up, that’s totally OK! What really matters is that you’re putting in the effort. Once you’ve built up enough working capital, you can create systems and hire a VA to submit offers for you.

It’s that simple.

ad-bookstore-2

What lead generation strategies have you found the most useful in your wholesaling business?

See you in comments section!

Brett Snodgrass is a licensed real estate broker and wholesaler who hails from the Indianapolis metro. His mission in life is to glorify God by serving as many people as he can through his real estate business. He has a pretty active community growing on Facebook and is also the founder of SimpleWholesaling.com Come check it out now and connect!

    David Boykin flipper_rehabber from Augusta, GA
    Replied about 3 years ago
    I’m not quite understanding this strategy for wholesaling. I agree that making tons of offers on MLS and REO properties can land you lots of deals but I’m not seeing how they would be wholesale deals. Seems more like a strategy for getting rentals and rehab projects. Can you elaborate on the steps and strategy for turning these deals beyond just making offers?
    Brett Snodgrass investor from Indianapolis, IN
    Replied about 3 years ago
    Hey David, No problem I’d be happy to! The way we wholesale, is by buying really cheap (and fully closing -no assignments), and then turning around and selling it for slightly more than what we got it for. The spreads on these are typically thinner but in my market of Indianapolis, we probably do about 20% of our deals from HUD and MLS offers. It depends on your market, but for us, these have still been good deals. Our average gross profit on these is between $3,000 -$5,000 so it’s not a home run but if you can do a lot of them, you’re doing pretty good!
    Seth Rouch specialist from Aurora, CO
    Replied 21 days ago
    Brett. Thanks for the article. I’m intrigued about how you do your funding for your deals. If you’re willing to share some insight. (I’m assuming use of hard money or PM?) thanks!
    Disraeli Lee
    Replied 10 months ago
    Thanks for the incite Brett. I know this post is fairly old, but with going after the REO properties through HUD, the only way to wholesale this is through double closing correct?
    Josh Smith investor from Troy, Michigan
    Replied about 3 years ago
    David, You can actually wholesale even though it is listed. Nothing changes, you still get the offer as low as you can, and on your contract I try for a 15 day inspection period, ad that is your shopping time to show your buyers. Now it requires a lot, because most realtors cry over a long inspection period. Also I don’t pay my earnest money until after the inspection period. Again realtors get whiny over this, but they have to show all offers legally, so their feelings get hurt before mine
    Josh Smith investor from Troy, Michigan
    Replied about 3 years ago
    Auctions? Not sure how to wholesale that. Don’t you have to actually buy it?
    Brett Snodgrass investor from Indianapolis, IN
    Replied about 3 years ago
    Hi Josh, yes you do! In my company, we buy all of our property and hold a free and clear title (unless otherwise stated) before marketing it for sale.
    Dan McGrath investor from Aurora, Colorado
    Replied about 3 years ago
    Sorry still new to the site. Going to the MLS section, is there a way to make offers automated? Because if you are making say 100 offers a day off the MLS and each offer can take up to maybe 5 mins to do each one, that would be 8.3 hours of work each day. So I am hoping you are meaning 100 to 200 a week? If not, please educate on how to get so many offers out daily or would this only work if you have a Realtor license?
    Brett Snodgrass investor from Indianapolis, IN
    Replied about 3 years ago
    Hi Dan, Hey thank you so much for pointing this out to me! This is a typo. We put in about 100 offers a month (20 per week) to get about 1 – 2 deals, not a 100 a day -that’s crazy talk! I’ve reached out to the BP editors to have them fix this. So sorry about the confusion!
    Kari Piecuch investor from Mobile, AL
    Replied about 3 years ago
    This article is just plain wrong. “Yes, the MLS is free!” No. It isn’t. For a licensed real estate agent – even after you pay for your licensing, test, and application fees, you have to pay for a monthly (or quarterly depending on locality) MLS fee. For brokers it may be free, but most states require a licensed agent to be licensed for 3 continuous years prior to applying to and PAYING for your Broker’s license. If you can really wholesale a HUD or Auction property, you should specify the actual steps to take to do so. Most of these contracts require you to BUY the property and you CANNOT ASSIGN the contract. There is enough misinformation out there and this article just adds to it.
    Brett Snodgrass investor from Indianapolis, IN
    Replied about 3 years ago
    Hi Kari, What I meant was that if you already are paying your licensing dues, then you already have access to the MLS, and there for it’s free. For example, I pay roughly $10,000 in direct mail per month. But I’m only paying around $3,500 , per year, for my realtor dues and fees, and once I have access to the MLS and go through the process of applying to have access to HUD, it doesn’t cost me anything beyond that. If you’re a licensed agent already (because you’re already paying those fees to be so) then getting deals off the MLS and HUD doesn’t cost you anything, because you’ve already paid for your license to be in active status. That was the point I was trying to make in the post. Sorry for the confusion!
    Mohammad (Asad) Asaduddin wholesaler from Houston, TX
    Replied about 3 years ago
    Thanks Brett for passing on your experience on MLS and HUD. I am a RE broker and I find making offers on internet without hard copies is not feasible for many listing agencies. Maybe it is getting easier as time goes on. What do think?
    Charles
    Replied about 3 years ago
    Great informative post. I used the cash4homesllc.weebly.com website to get my home sold fast and for cash. The process was fast and easy. It actually motivated me to get into wholesaling real estate. I said to myself, I can do this. Creating an effective website is essential to any business. Again, great post!
    Marty True rental_property_investor from Las Vegas, NV
    Replied almost 3 years ago
    I have to agree with some of the others… The MLS is not free in the sense that you refer to it. Now if you’re using something like Realtor.com or Redfin.com, then sure you could claim that “public (highly restricted) access to the MLS is free. Also the auction is technically a place where you could acquire a property for a low price however the majority of wholesalers that are on here and that are “entry-level” wholesalers, are not looking to necessarily hold property for any length longer than a few hours (in a double closing). The fact that you mentioned your strategy is to fully close and then try to sell after you own it, is not really the current mindset of new wholesalers because your strategy potentially comes with holding costs where most wholesalers are looking to assign or at the least, double-close same day. The article does have some good info in it though 🙂