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.

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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.

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

See you in comments section!

Brett Snodgrass is CEO of Simple Wholesaling and has been a full-time real estate investor for 10+ years. He specializes in wholesaling, wholetailin...
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    Dan McGrath Investor from Aurora, Colorado
    Replied almost 4 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 almost 4 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 Property Manager from Mobile, AL
    Replied almost 4 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 almost 4 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 almost 4 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 almost 4 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 Miami Beach, FL
    Replied almost 4 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 🙂
    Barry W Bahr Investor from Tampa, FL
    Replied 10 months ago
    Good ways to get a wholesaling business off the ground that I hadn't thought of. I'm struggling but will try these strategies to see if it makes a difference. Thanks.
    Charles A Munk Wholesaler from Deltona, FL
    Replied 10 months ago
    Brett, Great article. Thanks for the insights.
    Meghan Freckleton-Hopkins Rental Property Investor from Hampton, VA
    Replied 13 days ago
    Great article! Looking forward to getting familiar with HUD and making offers on REO. Thank you for taking time to write this!
    Greg H. Broker/Flipper from Austin, Texas
    Replied 13 days ago
    LOL. Clearly this article failed to clarify that no viable agent is going to address your offer on MLS without proof of funds and you will never secure a HUD without proof of funds and non-refundable earnest money