We have tried a few different marketing strategies for possible wholesaling. None seemed to work. Went to the court house got the list for pre foreclosure and done a few different mailings. We live in Massachusetts. Does anyone have suggestions on what works best here in Massachusetts? Feeling a bit lost on finding deals for wholesaling.
So what have you tried so far? Who have you mailed to? What kind of wholesaling are you trying to do? What I mean by that is are you looking for houses that need work that you can flip to a rehabber? Have you mailed to absentee owners with high equity? Have you marketed to expired listings? Are you placing ads online? Are you driving looking for vacant houses? Are you interested in wholesaling lease options or owner financed properties? Not sure what works best in Massachusetts but these are some that work well for me. Give me a little more about what you are doing and I will do my best to point you in a specific direction. Good luck!
We will need much more information to help you but I think it is important to understand a few things:
1) what market are you working in Mass? I can tell you that in Eastern Mass I am seeing very few "deals" which means that anything that could be a deal is selling for more than it should due to multiple bids. That and, generally speaking, Sellers in this area know the value of their homes so when you offer 60-65% of ARV (or whatever) they are not likely to accept.
2) How many and what types of direct mail are you sending? I really don't think you can assess how well a campaign is working until you are sending 1000+ pieces per month for 6+ months. Handwritten letters are also known to get a better success rate especially here where sellers are getting a ton of postcards and yellow letters.
Remember, the average prospect will not respond until you have made 6-7 contacts with them.
Everyone says wholesaling is an inexpensive way to break into REI and it can be but to get any type of meaningful real flow you are going to need to spend $$$.
Stick with it but prepared to get very little to know response your first few mailings.
@Jennifer Carton Welcome.
This is a tough market (a lot of competition and very high prices that don't make sense) but you seem like you'd be a tough lady that would make a good investor.
The trick is to try many things and focus on what's working.
There's a lot to this. e.g. It's better to mail deeper (7 times to one person rather than once to 7 people).
Number one couldn't be any more true. We are looking to purchase our primary residence, and its crazy around here. I have done vista print by zip code, 3 different written letters. I sent about 800 total. Felt very discouraged when we got no responses. Thank you for clarifying some things for us. Wholesaling I think needs to be clarified by saying once you find the grove and how its done the potential is great. Its like finding a needle in a haystack.
@Mike Hurney lol tough market is right. Thanks for your advice and kind words. I am very much a people person. I am a hairstylist by trade. That was always rewarding. Have a great night.
Keeping it real
@Jennifer Carton You've received good advice from everyone so far. Just to piggyback on what they've said, it's very easy to get discouraged, especially in a competitive market like ours. The key to finding deals is to 1) ensure you are targeting good prospects, 2) you're getting in front of them and making a good impression, 3) being consistent on follow-up
When creating mail pieces, find ways to be creative so your not bunched in with all the other yellow letter type pieces. Also, it takes time to build momentum. With response rates significantly increasing after the 6th touch and the time between each mailing being 3-4 weeks, it's going to take 16-21 weeks (4-5 months) before you see consistent results. This is the toughest part of marketing (and the reason most people quit prematurely) because you are spending money and don't feel like you're getting anything in return. However, consistency is KEY!
I'm interested in wholesaling myself. From the podcasts and forums I've gathered it's a numbers game as someone said above its better to send 7 letters to one person vs 7 ppl one letter. I'm gathering my data now and after I build a website I will begin direct mailing but I'm still figuring out a strategy to make my letter stand out. Hope u find your sweet spot! Keep us updated I'm always learning and taking notes