I have done 2 deals since 2011 and I want to invest full time by wholesaling. What would be the best way to find deals/motivated sellers with no money for marketing???
I know that the successful wholesalers spend upwards of $5k each month in marketing. If you want to be serious about it, you're going to need to spend some dollars.
Personally, I flip houses. I don't like wholesaling so I let the wholesalers do their job and I buy from them.
It'll be hard unless you are looking on MLS all the time, but it's so hard to find deals on there anymore.
Go to your local REIA, meetup group, any gatherings where there are large amounts of people and give out your business cards. As they say, you have to spend a little bit of money to make money and it will be tough to get wholesale deals coming on the lap if just sitting in one place... Good Luck!
Maybe try to find someone to partner with, they bring the money and you do the leg work.
Advertise on online free sites such as Craigs List etc.
Borrow money from your family.
let's call these low cost marketing ideas...since you have to invest something...I.e. paying for your phone/internet.
1. Posting an ad on Craig's list and other online classified service.
2. Gotta car? When ever you run errands back your car into the space. Then put in your windshield a sign that say "I buy houses 555 1234" Protect you car from the sun and market your business. I found a poster size board at my local dollar store.
3. Flyers - anywhere with a bulletin board . Supermarkets, laundry mats, etc
4. Networking at your local- you'll need business cards. You can get them from vistaprint.com for as low as $10 plus shipping for 250.
5. Referrals from friends and family
I know if I had no money I'd be out delivering pizzas and mowing lawns both of which could bring me leads and money for advertising. @Jason Fraser has some good ideas.
@Zac Preston , How did you find your first two deals? Do that x 100. I agree that @Jason Fraser has some good ideas. When you're traveling to work, store, etc. take a different route ever day, take down addresses of houses that "look like they should be for sale", check out the county website, see where the mailing address is, send a letter to the owner. Takes some time, but costs about $1 each. I think it's a worthwhile investment. Even cheaper yet, knock on the door. Happy hunting.
Thanks guys for opinions and ideas!
I don't have marketing money either. My leads are coming 100% from driving for dollars. Although that takes some gas money, simply taking varying routes to normal destinations has filled my notebook with dozens of distressed property addresses. From there, an online search of the auditor's/tax assessor's site yields loads of property information including the owner's name and often a current address.
In most big counties, the clerk of courts has public records online. A check by owner's name will show legal actions such as foreclosure filings, judgments, divorce, etc. involving the owner. TaxLiens.Com lists active tax liens by city. It's about $40/month, but the good news is that there is a free 7-day trial which will provide numerous addresses (for my city there are hundreds) to explore further. At the risk of suggesting something you already know, I'd read up on how tax liens are handled by your local area. Here, home owners unable to pay back taxes, interest, court costs and attorney fees can lose their house even if they have no mortgage. By selling, even at wholesale, they will probably come out way ahead. Oh...I also had an "I Buy Houses" button made by Zazzle. About $10 including shipping.
No Money = Door Knocking. 5 step process.
2) Look for a sign that says house for sale in a yard.
3) Knock on door.
4) Talk to the seller. Most importantly listen to seller to construct best offer possible.
5) Leave 2 offers. One cash. Another terms.
Do this 30-40 times. You should find a deal.
@Barbara Riley I found an online listing for my county for the tax liens. Liens are auction the first Tuesday of every month here. Have you had any success with these?? Also is a home owner with a lien able to sell to a buyer anytime before the property would bet set to be auctioned??
Be very careful, please! There is a LOT to know about how these work!
The home owner can sell anytime prior to the sheriff's sale. It's still their house. I'm new and feeling my way on this, so be aware! :-)
I'm looking at a house now that has no mortgage. I've found several of those, surprisingly. Don't know why people don't sell rather than risk a bid at sheriff's sale that just pays the taxes and costs...leaving them nothing. I guess maybe denial plays a part? In this case, they did not show up at court or file any answer. The house is quite nice, and appears to be occupied. The sale is coming up pretty quickly. An offer of 70% (less repair and holding costs) should net them a decent amount of cash after the taxes and costs are paid. Their alternative is to let it go to sheriff's sale and take their chances. Looks to be in very good condition, and is in a nice area, so not anticipating high repair costs. I just found it this afternoon, so letter going out tomorrow. We'll see. (I pretty much try to screen for free and clear or very high equity. The court recorder's office can tell you what liens, mtgs, etc have been recorded on a property.)
My caution to you, again, learn everything about how tax liens work. I'm still learning, and I've read a lot. Be extremely careful! Personally, I would never bid at auction. Purchase prior to auction, with inspection and title search done is the only way of purchasing that I would consider safe. I'm a strong believer in failure avoidance! One bad buy can wipe out the profit from your good buys. (Learned that lesson from antique auctions. lol)
Meant to mention that I didn't forget you are looking for no or very low cost deals. I do not have funds to purchase on my own. I will be either a "bird dog" or a wholesaler on these until I have enough $$ saved to buy on my own. Still, good education.
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