Costa Mesa, CA · Member since 2013 · 39 posts · 9 votes
Hey everyone - newbie out of Southern California. I want to start wholesaling, and I have picked my area where I want to begin marketing. What do you guys suggest I start with first?
-Should I just start marketing and paying for lists and sending out yellow letters and post cards and putting up bandit signs? Do I need to get an attorney, do I need to have an LLC setup, and what other areas am I missing that I need to make sure I have before I begin.
Hello Neil, welcome to Bigger Pockets! That is a question everyone has when they are looking to start wholesaling. How to get started?
All of the above you mentioned are good ways to start, you have to do anything to get a deal. I would start going to local networking groups like Chamber of Commerce, Business Network International and most of all Real Estate Investor Clubs. You can google REIA's in your area as well as looking up on Meetup.com for a couple of events.
Marketing is the most important when becoming a wholesaler. I got started by sending letters (yellow letters or stationary) to preforeclosures. You can buy lists, but if budget is tight and you don't mine doing a little bit of work, you can head to the local registry or courthouse for all of the Notice of Defaults and mail to them. I never send postcards as I try to be sensitive to the clients situation and not letting the whole neighborhood know they are in foreclosure.
Bandit signs are also a good way to find deals, although I am noticing now that it seems like every corner of every city/town there is a different WE BUY HOUSES sign LOL..
I am a full time investor/wholesaler so what I do is plan my marketing techniques daily. Tuesdays I will head to the courthouse to gather information as well as "Farming For Deals" Looking for the run down properties or distressed situations.
Once I find a property that fits my criteria, I will do the research and try to contact the owners! If I can get their phone number, I will send a mailing and 3 or 4 days later call them and follow up. I will also knock on their door as well.
If you sit back and wait for them to call you, you will not become successful. Go the extra mile and do things other investors are not!
You would eventually want to set up an LLC. I tell people to do it before you get your business going. This is a business and you want to look as professional as possible even if you haven't done a deal.
People do business with other people they like and trust!
My two cents - get a deal. The easiest way to find one when you are starting out is marketing to your sphere of influence.
Send mailers to family, friends, co-workers, etc. Let them know you are an active RE investor, you are looking for deals (describe what deals look like) and mention your referral fee ($500-1500).
The nice thing about this type of marketing is that your credibility and trust is typically already established. Before sending out mailers, build a website about your company and make some business cards.
Getting a deal is the toughest part - once you have that, money, contacts, etc. will start to fall into place.
Totally agree with Arthur Garcia. Find opportunities in your sphere of influence & the relationships you already have. Use social media - Facebook and LinkedIn especially - to let people know about your new business. Get business cards and tell everyone you know and meet what you do and how to contact you.
There is a TON of competition out in that market - but the good news is we have investors out there that are selling their rehabbed properties quick and often for more than asking price. Typical crazy SoCal! =)
John Fossetti Arthur GarciaDev Horn Thanks guys for all the advice. I've taken it all in, and will definitely work hard to get that first deal and many more moving forward. Thanks!
You should take Dev Horn advice. You should use the resources around you and begin to network and let people know you're an investor. Sending out mail and putting up signs are great, but also learning the technique of how to engage people will elevate you to the next level. Talking with people and handing out business cards will began to build your confidence and you can improve on your personality. Best of Luck!!!