Newbie Information Q&A

3 Replies

Hello! I’m a new member from the West Suburbs of Chicago (Schaumburg area) interested in wholesaling real estate. I was wondering if anyone has a few pointers and simply share some knowledge with me on what should I start with, how to generate leads, finding motivated sellers and cash buyers, the whole wholesaling process, calculating deals, etc. I’m fresh in the industry. Feel free to message me to chat or reply on my post. Thank you!

Direct mail is a good tactic for finding sellers. You can get a list of off-market leads to you can talk to people before they go through all the steps to put their house on the market.

The most commonly used list is for Absentee owners. Cook County however is a pretty competitive market and you might find that the the absentee owners are getting plenty of offers from other investors.

Another effective, but not yet over-used list to consider is: Seniors with 15+ year ownership and low Financial Stability Scores (FSS)

I ran a report and found 2100 in Schaumburg, Hoffman Estates, Streamwood, Hanover Park and Elk Grove. All are single family homes, 15+ year residence, low FSS and home value up to $350,000.

This group is often ready to downsize or transition to assistance. It's also unlikely that they have done any updating and kept up on all the maintenance so a lower offer is more reasonable and you have a renovation opportunity.

Come up with a list of services you can offer to make it easy for them to sell (as-is) and to move (clean-up service). Find some people who run yard sales and purchase estate items that you can bring in.

If someone has been thinking about selling, but are overwhelmed at the prospect of fixing the house to put it on the market, your letter could just do the trick if you let them know what you will do for them

Originally posted by @Daniel Bielski :
Hello! I’m a new member from the West Suburbs of Chicago (Schaumburg area) interested in wholesaling real estate. I was wondering if anyone has a few pointers and simply share some knowledge with me on what should I start with, how to generate leads, finding motivated sellers and cash buyers, the whole wholesaling process, calculating deals, etc. I’m fresh in the industry. Feel free to message me to chat or reply on my post. Thank you!

Good to meet you Daniel

let's talk about your buyer question.

  1. Where to find cash buyers. This one is easier then it may seem.
    • Visit where they are selling foreclosures. In your area that is Daley Center Room 701 Chicago 60602. You can reach the Chancery Department at Phone Number. Cash buyers will be there. Network
    • Every time you speak to an absentee owner there are three conversations to have.
      1. Do you have a house you're hoping to sell?
      2. Are you buying more properties at the moment and where?
      3. Are you help investors like yourself finance properties?
  2. Visit Zillow or Trulia and do a search for active for rent by owner ads and call those folks. Ask the same questions as above. https://www.zillow.com/chicago-il/rent-houses/
  3. Visit your local REIA and network.
  4. Here is a list of investors who paid cash for a property in Chicago this year.. Send them a letter asking if they want more

    List

Here is the verbiage for the letter.

Dear {Name},

I understand that you recently purchased a property at {Address}.

I have access to additional investment properties in the area at a discount.

If you would like to see a copy of my current inventory or would like me to consider adding you to my current buyers list please call me.

Respectfully,
You
{Phone}

P.S. I’m only looking for a handful of qualified buyers. Tell me exactly what you’re looking for… I’ll go find it for you. Give me a ring anytime.